The amount of money that going solar will save you depends on your location and the number of solar panels you install. However, in 25 years, solar will save you more money on average.
Over the years, many of us have become increasingly aware of our power consumption and what it means both for the environment and our wallets. As a result, solar power has become a well-talked-about topic among homeowners, but is there anything to it? Can converting to solar power help?
Solar power has come a long way, both in efficiency and affordability. Here we’ll tell you everything you need to know about going solar and how it can save your household money in 2021.
How do solar panels help?
Solar panels work by removing the need to use external power, including those derived from fossil fuels and non-renewable sources. Instead, solar panels rely on the sun to generate energy, which means that they are a type of renewable energy. This can significantly help the environment in the long run.
How much solar panels will help both you and the environment will depend on several factors:
- How much power do you use?
- Your local power rates
- How many solar panels do you install?
If you live in a country where there is little sun, and it is raining all the time, you are less likely to generate as much power as if you lived in a sunny area.
So, you should also take your location into account, as this will be one of the most significant factors affecting the efficacy of your solar panels.
How much money does solar save the average person?
If you are looking to wrap your head around solar, looking at the savings for an average person helps. This will give you a rough indication of whether solar panels are the right option for you.
So, what does the average person save by going solar?
The average American citizen’s power consumption is approximately 10694 kWh each year (which averages out to about 877 kWh every month).
So, now we need to take the average national charge for electricity, which is $0.13 for a kWh, and multiply these together to find the national annual bill for electricity.
So, this equals out as $1,390 every year for electricity. So, if you are looking to save money by going solar, you will need enough solar panels to cover the $1,390 yearly expense. For every state, this will change. So, let’s look at one of the best: Arizona.
Solar in Arizona
In Arizona, the cost of electricity is $0.13 per kWh, but they get plenty of sunshine. In Mesa, AZ, their sun production is 9540 kWh of electricity every year. So, if you are going to install a 6kW solar panel, this will save $45,217 over 25 years.
Solar in Washington
If we take a less sunny location, Seattle, Washington, we can see a price comparison. In Seattle, electricity costs slightly less at $0.11 per kWh with a sun production of 5664 kWh per year. However, over 25 years, this results still in a massive saving of $22,715.
So, even in less sunny locations, going solar will save you a significant amount of money, especially if you are in it for the long haul.
In addition to saving you money by your power usage, you can also benefit from other things such as the federal tax credit, which will give you a break when you install solar panels.
The federal tax credit is 26% which for the standard 6 kW solar panel (which will run you $2.85 per watt to install) will save you $4,400 on installation. This would then bring the cost down from $17,100 to just $12,600.
Will going solar always save me money?
Obviously, as with anything, there is an element of uncertainty in knowing exactly how much money going solar will save you in the future. However, we can make an estimated guess. It’s easy to accurately guess how much electricity your solar panels will produce over their lifespan.
However, what is less predictable is the future value of solar. Over the past few years, the price of electricity in the United States has risen by 3% year-over-year. So, we can say with a decent amount of certainty that electricity prices will continue to increase in the future.
If the price of electricity continues to increase, so will the value of your solar energy. It is doubtful, although never impossible that electricity will become cheap enough to undercut the value of solar energy.
How much do solar panels cost?
One of the biggest things putting people off installing solar panels is the enormous upfront cost. Of course, solar panels are costly, but what most people forget when they see the price tag is all the money that they will eventually save you over the years. Once they have paid for themselves every year, you will continue to reap the benefits of producing your electricity.
The exact amount it will cost you to install solar panels on your home will depend on a few factors—for example, how many solar panels you need and the type of solar panels you want. You also factor in the cost of the installation company you choose to use.
However, for the average person, the cost of installing solar panels runs anywhere between $16,200 and $21,400. Over the past few years, installing solar panels has become increasingly more affordable, allowing more people than ever the chance to make a change in their electricity consumption, aiding both the planet and their bank accounts.
Another thing worth keeping in mind is that solar panels can also add value to your home. So, if you are planning to move home but have spent a decent amount of money installing solar panels, do not worry. All is not lost. In fact, on average solar panels can add $15,000 to the value of a home.
How long is the lifespan of solar panels?
Although solar panels can save you a lot of money over the years, it is worth remembering that they do not last forever and eventually need replacing. But exactly how long do they last?
How long your solar panels last will depend on the type that you choose. But many solar panels last between 20 and 30 years and will require only a minimal amount of maintenance over that time.
Most solar panels will also come with a warranty. So, it is worth checking with the company supplying your solar panels precisely what they will cover in terms of upkeep and replacement over a minimum timeframe of twenty years.
Although the initial bill for installing solar panels on your home may seem a little scary, it is worth keeping in mind that they will both save you money in the long run. Most solar panels will last up to 30 years and will quickly cover their cost in the money you save on power.
It is best to shop around and do your research so that you can choose the best solar panels and installation company for your area. It also helps to understand how much money you will save on average.
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