Homeowners everywhere are starting to discover the financial possibilities that solar power can offer. Initially there are questions about costs. These eventually turn into questions about savings, such as – how much money can solar panels save?
This article is a continuation of a series of posts about the financial aspects of residential solar power.
Let’s delve into the true monetary value of solar power now.
It is understandable that the initial reaction to the cost of a solar panel system is not always positive. The average person does not make multi-thousand dollar-sized purchases that often. This, of course, is the wrong way to look at solar power. It’s not a purchase. It’s an investment that can save the average homeowner many thousands of dollars over years of electricity usage.
So how much can solar panels save? Let’s take a look at an example that can be considered very typical for an average American homeowner over 25 years.
Assumptions –
Monthly electricity usage – 900 kilowatt hours
Energy usage over 25 years – 270,000 kilowatt hours
Utility energy rate – 13 cents/kilowatt hour
Solar power rate – 8 cents/kilowatt hour
Without Solar–
Cost over 25 years – 270,000 kwhs * 13 cents/kwh = $35,100.
With Solar–
Cost over 25 years – 243,000 kwhs * 8 cents/kWh = $19,440
Remaining utility costs – 27,000 kwhs * 13 cents/kWh = $3,510
In this example, and in the typical solar panel installation, systems are sized to offset no more than about 90 percent of conventional electricity usage. So total savings are approximately $12,000 over 25 years.
Go to the cost of solar page to learn why solar only costs $0.08/kWh.
The preceding example is actually on the conservative side. Solar power savings will in fact be much greater as utilities continue to raise rates as they have historically done over the past few decades. The chart below, from the U.S. Energy Information Administration, shows residential electric rate increases over the past 5 decades.
The chart shows that retail residential electricity prices have gone from just over 2 cents per kilowatt hour in the early 1960s to 12 cents per kilowatt hour as of 2010. Many Americans across the country now pay much more than 12 cents per kilowatt hour for their electricity.
It would be speculative to guess how much retail electricity rates will increase in the coming years, but there is every reason to believe that they are going up. Increasingly expensive extraction of fossil fuels and environmental regulatory pressures will keep upward pressure on conventional energy prices.
Homeowners are always looking for information on how to save on electricity. Increasingly, solar power will become one of the best ways to save on electricity. It’s simply the next best thing to consider after looking into taking home energy efficiency measures.
In the coming years, more and more people will look to solar power for a great way to save money on electricity.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. The amount of savings will depend on various factors such as the size of the solar panel system, the amount of sunlight in the area, and the local electricity rates. However, studies have shown that solar panels can reduce electricity bills by an average of 50-70%. Additionally, with the availability of government incentives and tax credits, the initial investment in solar panels can be recouped within a few years. Overall, investing in solar panels is not only an environmentally-friendly choice but also a financially-wise decision that can lead to long-term savings.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. The amount of savings will depend on various factors such as the size of the solar system, the amount of sunlight in the area, and the current cost of electricity. However, studies have shown that solar panels can lead to long-term savings and even pay for themselves over time. Additionally, solar panels contribute to a more sustainable and environmentally friendly energy source, reducing reliance on fossil fuels. Overall, investing in solar panels can provide both financial and environmental benefits.
In conclusion, solar panels have the potential to save significant amounts of money on electricity bills. The amount of savings will vary depending on factors such as the size of the solar system, the location, and the energy usage of the household. However, it is important to note that solar panels require an initial investment and may take several years to fully recoup the costs. Despite this, solar panels offer a sustainable and environmentally friendly alternative to traditional electricity sources, providing long-term savings and reducing reliance on fossil fuels.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. By harnessing the power of the sun, these panels can generate clean and renewable energy, reducing reliance on traditional fossil fuels. The exact amount of savings will vary depending on factors such as location, panel efficiency, and energy usage. However, studies have shown that solar panels can save homeowners thousands of dollars over their lifespan. Additionally, with the increasing affordability and accessibility of solar technology, the potential for savings is only expected to grow in the future. Therefore, investing in solar panels is not only an environmentally friendly choice but also a financially wise decision.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. By harnessing the power of the sun, these panels can generate clean and renewable energy, reducing reliance on traditional sources. While the exact savings will vary depending on factors such as location, energy usage, and the size of the solar panel system, studies have shown that homeowners can save thousands of dollars over the lifespan of their solar panels. Additionally, solar panels also offer environmental benefits by reducing carbon emissions and promoting sustainability. Overall, investing in solar panels is a wise choice for those looking to save money and contribute to a greener future.
In conclusion, solar panels have the potential to save significant amounts of money on energy bills. The exact savings will vary depending on factors such as the size of the solar panel system, the amount of sunlight in the area, and the current energy rates. However, numerous studies have shown that solar panels can result in substantial savings over the long term. By harnessing the power of the sun, homeowners and businesses can reduce their reliance on traditional energy sources and contribute to a more sustainable future.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. The exact savings will vary depending on factors such as the size of the solar panel system, the amount of sunlight in the area, and the current cost of electricity. However, studies have shown that homeowners can save thousands of dollars over the lifetime of their solar panel system. Additionally, solar panels also offer environmental benefits by reducing reliance on fossil fuels and decreasing carbon emissions. Overall, investing in solar panels is a smart choice for those looking to save money and contribute to a more sustainable future.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. By harnessing the power of the sun, solar panels can generate clean and renewable energy, reducing reliance on traditional electricity sources. The amount of savings will vary depending on factors such as location, energy usage, and the size and efficiency of the solar panel system. However, numerous studies have shown that solar panels can lead to substantial long-term savings and even pay for themselves over time. Additionally, solar panels contribute to a greener and more sustainable future by reducing carbon emissions and dependence on fossil fuels. Overall, investing in solar panels is not only a smart financial decision but also a responsible choice for the environment.
In conclusion, solar panels have the potential to save homeowners a significant amount of money on their energy bills. By harnessing the power of the sun, solar panels can generate clean and renewable energy, reducing reliance on traditional electricity sources. The amount of money saved will depend on various factors such as the size of the solar panel system, the location and climate, and the local electricity rates. However, studies have shown that homeowners can potentially save thousands of dollars over the lifespan of their solar panels. Additionally, solar panels also contribute to a greener and more sustainable future by reducing carbon emissions and promoting environmental stewardship.