Do Solar Panels Actually Save Homeowners Money?

Will Going Solar Help You Save on Your Power Bill?

The short answer to this question is a simple “yes.” Solar power is not just good for the environment, as putting solar panels on your house could also net you considerable savings on your power bill. Depending on where you live and the amount of power your home or business consumes (see below for more information), that savings could be enough to offset the cost of the solar power system you get installed in as little as a few years.

Regardless of where you live, solar power is a terrific way to gain savings while doing a little something good for the environment. In this post, we will start by taking a look at how much you may stand to save if you decide to put solar panels on your home.

We’ll also look at the amount you might save on your power bills, depending on where you live and what size system you decide to purchase. Last, we’ll take a quick look at how solar power incentives, tax credits, and other programs can offset the cost and get you into a position to realize those savings faster.

How Much Savings Are We Talking About With Solar?

The short answer to this question is, “it varies.” In fact, there are many variables that go into determining just how much you stand to save by installing solar panels. Do you use a tremendous amount of power? Do you live in an area that gets strong sunlight and reliable weather throughout the year?

(Note: You don’t have to live someplace known for its clear skies in order to benefit from adding solar panels to your home, but it doesn’t hurt. Learn more about winter and solar panel efficiency here.)

In order to understand what you stand to save by going solar, you first have to get your head wrapped around what you are spending on power annually, and to understand what amount of power you could generate on your property. But, the biggest factor may be how much you are paying for conventional, grid-delivered power.

Also, living in a solar-friendly state – one that provides tax credits or other incentives beyond the federal 30% solar credit to offset the cost of purchasing and installing solar panels – can make a huge difference.

Solar Power Incentives Vary by State

Some states are more solar-friendly than others. No matter where you live, however, you can always take advantage of the federal incentives to go solar. But in some states, there are additional programs, tax credits, financing programs, and net metering programs, which allow you to sell the excess power your system generates to your local utility to offset the cost of the power you draw from the grid when you’re not generating your own electricity.

Because of these variables, the average savings realized by homeowners over twenty years with an average 6Kw system in a solar-friendly state like California (just under $30,000) can be enough pay for that system one and a half times over.

But, in a state where energy prices are lower and the skies aren’t quite as sunny, like hydroelectric powerhouse Washington, the savings may only amount to about half of what the system costs over the course of twenty years.

Finding the Path to Savings With Solar

To truly understand what you stand to gain, beyond the peace of mind and sense of satisfaction that comes with generating your own clean, sustainable power, speak with a solar installation professional in your area. They can give you a quick rundown of the costs, the incentives available to offset those costs, and what you can stand to save by installing solar panels.

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