Now hiring for all positions.   Apply Now - Click here

The use of solar panel systems for homeowners keeps shooting and for a good reason. While the buzz is about saving you money, you may wonder about the extent of these savings. Interestingly, some even complain of high electrical bills despite going solar. So, how much does solar panels save?

 

How much does solar panels save?

What are the numbers and the incentives that may help guide your decision? One thing is for sure, going solar has never been this better! The cost of solar panels in Florida is $2.61/watt. That means for a system of 6kW; we are talking of a total of $15,660. That is a high cost, we agree! But that’s where the incentives come in. The national average for residential solar systems is $2.85, so you can thank your state for the reduction. The incentives include;

  • 22% federal tax credit for a home solar installation before December 31, 2022.
  • Property tax exemption.
  • 6% residential solar system sales tax exemption.

 

How much do solar panels save you?

Installing the appropriate size can save you up to $80,000, no exaggerations! But again, the savings depend on factors like the panel’s cost, your utility company rates, your property’s power consumption, and of course, the climate. Living in the state of more sunny days makes the last variable inapplicable.

 

How do you save money with solar panels?

On average, a solar may take eight to nine years to pay for themselves. For the payback time, that may take as little as five years and will depend on the following factors:

  • Energy consumption, especially during daytime
  • The size of the system
  • The electrical rate plan

Saving as much as possible involves significantly reducing your power usage, meaning your solar panel will add more energy to the grid that your utility will still pay you for. During the day, there is high energy production, but if you are at home, it will result in the system exporting less energy to the grid. That means the utility will pay less in net metering credits. Unfortunately, this will increase your electric bill, although it’s not like not having a solar panel. So, what is net metering? The policy ensures that the renewable energy produced by your system and not used instantly is sent to the grid, and in exchange, you earn credits for your electrical bill.

We like to think that solar panels reduce our electric bill overnight, which is not true. Provided you are connected to the grid; you will always have an electric bill. The good news is it may not ask for any payments as it could be a summary of your energy consumption.

Once you install your solar, all you need to manage is your electricity consumption. Adding more panels or a solar battery storage system will help.

 

How much do solar panels save on electricity bills?

Before purchase, we receive frequent questions, like, how much do you save on electricity with solar panels? Any typical homeowner spends roughly $1450 yearly on the electricity bill. Think about the electricity prices and future utility company rates. If we are comparing solar with electricity, we can expect the electricity rates to rise yearly. Taking a hint from the past years, the increase is at 2.2% per year. Therefore, going solar means generating energy from your PV system, locking out the utility rate inflation.

Pin It on Pinterest