Can I Save Money With Solar Panels in 2023 ? - Tips and Statistics

It's no point debating on whether you can save money with solar panels. In fact, asking the question is like asking "do I need oxygen to live". The obvious answer to the question is yes. As confident as you are to say "yes" to the oxygen question, so should you be with the solar panel question. To help you, let me answer the question for you.You can save money with solar panels . What you should consider is how much money you will be able to save using solar panels.

About Question of How Much You Can Save Using Solar Panels?

We will be providing you with answers to the question of how much you can save using solar panels.

• If you are looking at reducing your electricity bills , you may go for solar panels .
• They are good energy alternatives for you. Other than the fact that they can save you cost.
• They also have environmental benefits.
• Installing a residential solar panel will help you reduce carbon footprint. Also, owning a solar system will increase your home's property value.
• If you live in a place where your home is exposed to a lot of sunlight, solar panels will be very beneficial to you.

You can check out: How do solar panels work?

Some Factors over How Much to Save with Solar Panels

Each home usage of energy differs and so is the energy cost. As a result, it is difficult to state exactly the amount of money you can save with solar panels . To determine how much you can save with solar panels, consider the following factors:

• Electricity rate of your locality
• Cost of solar panel and installation
• Your home's exposure to sunlight
• National, state or local solar incentives of the place you live
• Government's policy

The above-listed factors will help you determine how much you can save with solar panels. Let's look at each of these factors more closely.

1. Electricity bill of your locality

To determine how much you can save with solar panels, first review your annual current spending on electricity .

• Generally, a typical U.S household consumes electricity of 10,400 KWh every year.
• The national average rate of electricity is $0.1326/KWh. multiply the two figures together and you will get something over $1,856.
• This amount is what a family in the U.S spends on electricity in a year.
• Electricity rates are volatile and continue to increase every year .
• It is only wise for you to opt for the usage of solar in your home.

Solar panels offers the following benefits to your bills on electricity:

• It helps counteract your bills
• It locks your energy costs in a fixed rate

The amount you will be saving using solar varies depending on the following:

• Changes in your consumption of energy (your home's power usage)
• Fluctuations in electricity prices
• Your home's location

The table below is a forecasted figure of solar panel's savings by a homeowner in America having a 6kW system.

Assumptions:

Size of solar system: 6 kW

Demand: 10,400 kWh annually

Rate of utility inflation: 3% per annum

Solar system is owned by the homeowner

2. Installation cost of solar system

In recent years, the price of solar panels has been declining significantly .

• As solar panels manufacturing companies' increases, the prices keep decreasing.
• This has led to a reduction in the total cost. The chart below shows the decline in the cost of solar panels between 1990 and 2014.
• The prices dropped almost 70% between this time duration.

• The major expense in solar panels has to do with the purchase of the panel and installation .
• Solar panels cost little in terms of maintenance . In fact, you may only need to be changing the batteries of your inverter.
• Solar panels are designed to serve for something close to 25 years .
• There is no significant change to the solar effectiveness during this time duration.
• The upfront installation cost of a solar panel is made up for by the very little long term expenses .

The amount of money you will save based on the estimated installation cost of solar depends on:

• The number of solar panels you will need to offset your need for electricity
• Size and positioning of your roof

You can read: You can calculate your area efficiency of panels by using a solar estimate calculator

3. Your homes exposure to sunlight

If you reside in a home with lots of exposure to sunlight, you can save money with the use of solar.

• Your home's access to more sunlight will bring about more generation of energy . Thus, you are insulating yourself from increased electrical costs.
• You will also be credited for the amount of energy you produce, especially the ones you did not use .

The amount you will be saving based on your home's exposure to sunlight depends on:

• Orientation of your home in the direction of the sun
• The numbers of shade in your roof
• Type of roof

You can check out: Is My Home Right for Solar

4. Incentives

Solar panels are an alternative source of energy.

• Homeowners having solar panels get notable incentives from the government .
• These incentives are received in the form of tax credits.
• A federal tax credit allows homeowners to get a 26% rebate off the installation of a solar system .
• This credit will decline to 22% in 2023, after which it will go away.

Besides this tax credit, you may still get some extra incentives and rebates from your state. This extra incentives and rebates for the installation of solar in your home may be in the form of:

i. Cashback

ii. Waived fees

iii. Expedited permits

iv. Property tax exemption

• Some states allow homeowners who have solar to sell whatever excess power they generate.
• The homeowners sell this excess power to utility companies around them. Based on the rebates and incentives you are eligible for, you could save up to $5,000 or more .

The amount of money you can save based on incentives depends on:

• The state or city you live
• Power provider
• Size of your solar system

You can consider: Look through the database of your states incentives for renewables and efficiency here

5. Government's policy

Changes in trade policy have an impact on prices .

• The four years imposed 30% tariff by President Trump on solar cells and panel's importation has brought about a 16% per watt increase for solar panel consumers.
• According to EnergySage, a 6kW system has an increase of $960 as a result of this tariff.
• As the cost of foreign-manufactured panels drops, the tariffs will be of less effect.
• A decrease in tariff will lead to a corresponding decrease in federal tax credit .

How much you save on solar panel in relation to the government's trade policy depends on the following:

• Time of purchase of solar panel
• Changes in trade's policy

You can read: EnergySavers: Tips on Saving Money & Energy at Home

The effects of weather conditions on solar panels

If you are having concerns about the effect of weather on the effectiveness of your solar panel.

Here is a list of different weather conditions and their effect on solar panels.

• Clouds

An obstruction to the rays from sunlight will affect the efficiency of solar panels. And different clouds, like fog, smog, and mist, are among them. All these mentions at noonday can only cut 30% of the solar panel efficiency. So it is not something to worry about. You can still enjoy the 70% delivery of your solar panel at such a time as this.

• Rain

Solar panel components have make-up that can withstand such a weather event as rain. In fact, the rain serves the purpose of helping you wash any dirt or particles on your panel surface. So, you don't need to worry about the effect of rain on the efficiency of your solar panel.

• Dust Storms

With this kind of weather event, it will only result in accumulations of dirt to form layers on your panel. This will block or limit the rays from penetrating through your panel. You can wipe them away. And this kind of weather event hardly occurs.

• High Winds

Fears of heavy winds ripping off solar panels are often the concern of some users. With high-quality solar panels that are well fitted, they can withstand winds of 80 MPH or a bit higher. Make sure that when getting your solar panel, you go for the best companies who are up to the task.

• Lightning

Electronic gadgets are prone to voltage surge. And with lightning, a solar panel is not an exception. But you can avert this. Your installer should ensure that your panel is well structured against surges. Also, you can get a lightning protector and attach it to your solar set up.

• Snow

Snow can form a layer on your panel. And it can block the rays of light from penetrating through your panel. Though snow will melt once the sunlight shines. And in case you have snow blocking your panel, you can sweep them away.

• Hail

Solar panels can serve as protection for your roof. And there are solar panels that can withstand hail with a velocity of 250 MPH or more. So, you don't need to worry.

All the factors discussed above must be considered before you can know how much a solar panel will save for you. Going solar has lots of benefits.

• Upfront, a solar panel may cost you money, in the long term, it will save you money.
• Other than the monetary benefit of a solar system, it also has an environmental benefit.
• Solar will help reduce CO2 in the environment.

Before deciding to go solar, ensure the factors above are favorable to you.

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