solar save money

Does Solar Save Me Money?

Solar is not only good for the environment but low on your pocket as well and saves a lot of money. That is the primary reason that whenever people have high electricity bills to pay or environmental issues, they think of switching to solar.

Since the sun provides every day an amount of energy that is more than enough for our power requirements and the places where there is a good exposure of sun light most of the time, it is highly sensible to install a solar system for the home. Installing a solar system is an ideal way to capitalize on the power of sunlight and save money that is otherwise spent on paying a hefty amount of electricity bills.

To what extent does solar saves your money depends upon the size of the panels you install. But one thing is certain and that is you save the money by installing solar panels and also get rid of your power woes. This is truly the “two tours in one ticket”. In this article, we will discuss the cost of solar panels and analyze how much money solar panels can save for you.

The Cost of Solar Panels:

In the United States, a solar panel system has an average price of around $3.14/watt and the size of the average solar system is around 6 kilowatts (kW), or 6,000 watts. From this, we can conclude that in America, the cost of installing a solar panel system is about $18,840. The federal solar tax credit reduces the price by 30% and so finally, the out-of-pocket price is $13,188. Interestingly, with the more usage and adoption of solar panels, the prices are decreasing instead of increasing and this trend will, most likely, continue.

How much Difference does Solar bring on your Electricity bill?

So, the main factor that decides whether solar saves your money or not is here as you can easily figure out difference from your bill. According to an estimation, the yearly bill of an American family on electricity, generated from fossil fuels, is $1,500. So we can infer here that after installation of home solar system, if you cover 100% of your needs even after that, you will save $100 per month in savings. And if you are close to the average cost, your solar panel system would pay for itself in 10 years or less.

Also, the electricity prices keep increasing every year but electricity generation from solar system has same cost each year. Also solar panels lost for decades and the average life is 25 years or one quarter a century. By making a comparison, it is proved that you get 15 years of full energy with zero cost. Whatever the expenses or cost you paid for the installation of solar system is equivalent to the electricity bill of ten years. The reduction of environmental hazards is additional to this. And off course, there is no cost of the environment and it is even more important.

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