How Much Money Do Solar Panels Save

How Much Money Do Solar Panels Save

You’ve been hearing a lot about solar panels lately, but is it really worth the cost? Is your home suitable for solar panels to operate at maximum efficiency? There are many things to consider, and we are the first to recognize that solar panels are not a cheap investment. In this article, we’ll answer the question of how much do solar panels save and explore what you need to know before making a decision.

How Much Solar Saves

First, let’s take a look at how much money you can potentially save with a solar panel installation. The national average electricity rate is $10.42 per kilowatt-hour (kWh). The average homeowner in the US spends $1,361 on energy each year. If your home is on par with the typical electricity consumption of 10 kWh per day, then that would be around $136/month or $1,560/year just for electricity! That’s without heating and cooling costs too! When you combine the average cost of electricity and gas in California, you get about a $170 utility bill. In regards to Palmdale, electricity can spike up to $0.21 per kilowatt-hour and you can see electric bills of $180-$220 per month. With a solar panel installation, you will drastically reduce the price of your electricity bill, and often times it can completely eliminate the cost. Electricity prices are constantly on the rise, and this is certain to continue as the electricity demand continues to increase. ​

Net Metering

Your electric bill is not the only way that you can save money with solar power. When your solar panels produce excess energy, you really have two choices. If you have a solar battery installed, you can store that excess energy for later use. Or, through the net metering incentive, you can sell excess power back to the grid and receive credit for it. When your meter is running in reverse, that’s when you know your solar system is producing more electricity than your home or business is using.

Solar Tax Credits

We’re not finished with the solar savings quite yet! Solar panels also come with great incentives! For example, the Federal Solar Investment Tax Credit (ITC) is still in effect for the rest of 2021. Currently, the rebate is for a whopping 26% of the price of your solar installation, without a cap! As we mentioned, this deal won’t be around much longer. In 2022, the federal solar tax credit will still be available, but the percentage will drop to 22%. That means if you install solar panels right now, you’re getting more out of your system than someone who installs in 2022! Depending on your state, there may be other solar incentives available.

How Much Solar Panels Increase Home’s Value

Thought we were done with ways solar panels can make you money? Not yet! By installing solar panels for your home, the value of your home will instantly increase. By how much exactly? This will vary a little depending on the type of solar energy system installed, but studies show it to be a little over a 4% increase. That means that for a home of middle point value, the price tag can see a jump of about $10,000! This is actually very modest compared to other research which reports that a home’s value can increase anywhere from $3,000-$6,000 per kilowatt installed. Residential solar systems are often 5 kW, meaning the value can see a $30,000 growth! If you’re still not convinced, then consider this: solar panels increase the value of your home without increasing its price! It’s a win-win scenario.

Long Term Benefits of Solar Power System

​Last but not least, consider the long-term benefits of solar panels. When you buy a car, it depreciates with time and eventually becomes almost worthless. With solar panels though, they are built to last! They have a warranty that can range anywhere from 10-25 years, though the average is closer to 20 years. A solar panel installation will produce clean energy for decades, with little to no maintenance costs in between! The current solar panels manufactured today can last 20-30 years while still working at their peak. They will still produce energy for long after this, but you will begin to see a small decline in their energy production, therefore it’s best consider replacing them in order to keep that electricity bill to a minimum.

​Solar is an investment for the long term, and the numbers get real enticing when you view it this way. The average solar savings over a 20 year period for a California resident is $41,000 and can be as high as $60,000+! That’s including when you take into consideration how much solar panels cost. What’s not to love about that! Solar panels require very little maintenance, so once you pay off your installation costs, it’s practically nothing but savings from there on out.

How Much To Install Solar Panels

The benefits of purchasing solar panels are endless, whether its lower utility bills or the federal tax credit, it’s exciting to think about how much money solar panels save. However, there are still many people who may feel like the investment is too big. You’re probably interested in how much it costs to have solar panels installed, so let’s dive into the upfront costs. The standard solar energy system for a home is a 5kW system. Depending on your solar installers, one can expect to pay anywhere from $11,000 to $15,000 for the full setup. However, one must consider the tax credits you will receive which will knock off about $2900-$3900 with the given prices.

No More High Electricity Costs

Of course, this is not a light investment, but solar panels really do pay for themselves, especially in California where we enjoy nearly 6.5 peak sun hours per day. This is when the sun’s rays are emitting 1,000 watts of energy per square meter and solar panels will be working their best. When you factor in that you save money on electricity bills and solar incentives, we see that the payback period for most solar energy systems is only about 6-7 years or less! Solar costs are nothing compared to what you’ll pay the utility company for the rest of your life. Electricity rates continue to climb, while solar panel technology continues to improve and is cutting energy costs for residential homes and commercial buildings all across California.

No Upfront Solar Cost

If you’re still concerned with solar panel costs, you may consider looking into power purchase agreements (PPA). This is where a developer will handle the upfront cost of the solar system installation. The developer then sells the homeowner the energy produced at a fixed rate, which is typically much lower than the current electricity costs. Once the PPA ends, the homeowner will usually have the opportunity to buy the solar system from the developer.

At Coastal Solar Palmdale, we install solar for no money down making it super affordable for you. One of the biggest solar myths is that the upfront costs will be too expensive to overcome, but we are happy to prove this is far from the truth.

How Many Solar Panels To Power a Home

​Of course, you can also feel good about yourself for lowering your carbon footprint and becoming less reliant on utility companies. Solar power will save money on your power bill and also help save the planet from climate change. It is a renewable energy source, and this is the main reason there are such great solar tax incentives including the federal tax credit.
Solar energy has developed leaps and bounds since it was first introduced, largely due to the Solar Energy Industries Association who has been backing this renewable energy source and solar companies nationwide. Solar power is undoubtedly the way of the future, and companies like us are installing solar panels for homes and businesses just like yours every day of the week! Don’t miss out on all the solar savings you could experience!

Solar Panels Save The Environment

Of course, you can also feel good about yourself for lowering your carbon footprint and becoming less reliant on utility companies. Solar power will save money on your power bill and also help save the planet from climate change. It is a renewable energy source, and this is the main reason there are such great solar tax incentives including the federal tax credit.
Solar energy has developed leaps and bounds since it was first introduced, largely due to the Solar Energy Industries Association which has been backing this renewable energy source and solar companies nationwide. Solar power is undoubtedly the way of the future, and companies like us are installing solar panels for homes and businesses just like yours every day of the week! Don’t miss out on all the solar savings you could experience!

Are Solar Panels Worth It

When you want to stop relying on your utility company and put the power into your own hands, it’s time you consider making a solar purchase. The advantages are endless when you look at how much solar saves on energy bills and the ever-rising electricity rates. If you are interested in installing a solar panel system, call one of your local solar companies like Coastal Solar Palmdale to get the ball rolling. See for yourself how much do solar panels save.

Contact Us Today

Contact the team at Palmdale Solar Panels if you’re ready to live a more sustainable life with superior solar energy. Get in touch with us using the main contact number listed on our website, from your first contact with our seasoned professionals you’ll receive in-depth information on the endless benefits solar panels will bring to your life, our work is guaranteed to save you an exponential amount of energy and money. Speak with our team today and get started on enjoying your life using the most reliable, renewable energy sourced from our beautiful Palmdale sun.

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