How Much Money Can I Save With My Solar Panel
By: Eric Huesca, SEO Content Writer
January 24, 2023
With the rise in inflation, everyone is looking for ways to save money or invest in assets with long-term results. Since electricity bills take a huge chunk of your monthly earnings, investing in solar panels is the best investment you can make for your future. Though there are a lot of benefits to solar power, the best is the potential to save money on your energy bills.
Therefore, with the rising cost of electricity and the increasing demand for renewable energy sources, more and more homeowners are turning to solar panel systems to reduce their energy costs.
Angle-of-a-solar-panel-installation.
But what is even better than the cost savings of installing solar panels? It is the potential to create even more savings through net metering. In this blog post, we will discuss the benefits of solar panels for homeowners, the different power plans available, and the potential for savings through net metering. By the end of this post, you should have a better understanding of how solar panel systems can help you maximize your savings. So, let’s have a look.
Making Money with Solar:
Making money with solar panel installation is the easiest source of passive income with low maintenance. Even if you took a loan to invest in solar installation, eliminating the electricity bill could return the investment to pay your mortgage within 5-7 years after installation.
Moreover, since solar panels have a long lifespan of 25 years, they continue to help you save money on your electricity bill. Additionally, the solar installation cost has been greatly reduced, and the credit goes to federal tax incentives.
As far as state and federal tax incentives are concerned, there are many different ways that homeowners can benefit from using solar energy in their homes. For example, Federal Tax Credits offer homeowners up to 30% off the cost of qualifying equipment purchases, such as new roofing systems or window replacements made in conjunction with installing new solar PV (photovoltaic) systems.
Though State tax incentives vary by state, they may include credits or reductions in property taxes related to installing renewable energy technologies like solar panels. Therefore, It’s important to research these incentives before deciding to install solar panels in your home.
Many jurisdictions also provide upfront subsidies for solar panel installation. While they are not widely available and are frequently only offered upon the availability of funds, it is still worth checking to find out if your state provides rebates. Rebates from state governments can cut the cost of your solar power installation by 10% to 20%. Local utilities frequently provide financial incentives to homes that install solar panels. Some utility providers provide monthly electric bill refunds, while others provide one-time incentives to construct a power system.
Investing in solar stocks can also help you earn a lot of money. The Solar Energy Industries Association implemented the Solar Investment Tax Credit (ITC) in 2006. It has resulted in an average annual growth rate of 52% in solar stocks.
Furthermore, when the supply excess from manufacturing is matched by rising demand, solar businesses’ earnings are expected to rise.
Invesco Solar ETF is one of the most convenient methods to invest in the solar energy market (TAN). The purpose of the ETF is to monitor the MAC Global Solar Energy Index. It comprises firms that manufacture solar energy hardware and goods for end consumers, machinery used by solar power plant manufacturers, solar installers, and firms that specialize in solar cell production. By February 19, 2022, the fund had a year-to-date return of -15.59% and a three-year return of 41.10%. Hence, you can earn a huge sum by investing in solar manufacturing companies and stocks.
Even after 25 years, solar systems don’t necessarily turn into useless waste; many still produce at 80% or more capacity, enabling owners to take advantage of clean energy. In addition to financial benefits, solar panels also provide additional benefits such as increased property value. Nationally studies show it could offer homeowners an increase of thousands at sale time. Not only do you save money on your electric bill, but you’re helping out the environment too! By switching to solar energy, you’re reducing your carbon footprint and positively impacting our climate for years to come. So what are you waiting for? Invest in solar today!
Solar Panels Size:
North of the equator, roofs that face south get the most direct sunlight, which makes them perfect for collecting and turning sunlight into clean energy. Now the question is, are UV rays stronger on cloudy days?
Setting up solar panels is similar to setting up an awning over a patio or an overhang on a roof. Awnings made of solar panels could cut by as much as 77% the amount of solar heat that gets into your home.
Ground-mounted solar panels can be put in almost any spot in a garden or field that gets direct sunlight for most of the day. When you mount solar panels to the ground, like when you mount them to poles, you need a specific spot in a garden or field to put them up. Because of this, they are a great choice for residential, commercial, or agricultural use, as well as anywhere else where land is easy to get to.
Solar panels can be put on a wide range of buildings, such as carports, gazebos, pergolas, solariums, and more. Since these buildings already get a lot of sunlight, installing solar panels would be a great choice for a project that emphasizes looks.
If your house doesn’t have a roof facing south, you can install solar panels mounted on the wall and face south. If you put your solar panels on the south wall of your house, they will look better and be in the best place to collect as much energy from the sun as possible.
If you have a large parking lot, installing solar canopies over your parking spots could give you two benefits. Parking lots are great places to get solar energy because they may have the same square footage as rooftops.
You must know the installation cost according to the size of the solar power plant you need to install at your home. Prices for solar installation vary greatly; a modest system costs as little as $5,500, while for setting up a high-end solar power plant, you will have to spend over $40,000. The typical price of a solar power grid with setup varies by state, with a 6-kW system costing between $12,500 and $20,000 approximately.
You can also install solar batteries with the system to preserve extra energy throughout the day. These batteries can light your house dark after sunset, on rainy days, and during power failures and other natural calamities. However, A single emergency battery can add up to your solar installation cost of around $200. However, if you want to invest in a whole lithium-ion system, you will have to spend at least $14,000. Tolar batteries are optional, but they can help consumers save a considerable sum in the long run, depending on the demands of the property.
By understanding how much you can save and choosing the right solar panel size for your budget, you can start saving money on your energy costs today. So, let’s look at the steps you need to take to find the best solar panel size for your needs.
First, it is important to assess your energy demands and see which type of solar panel best suits your situation. For example, if you only use a small amount of energy each month, you might need a smaller solar panel of 3W. Conversely, you may need a larger solar panel system if you use a lot of energy each month. However, once you have determined which type of solar panel would work best for you and different research models, find the best quality at a price that fits your budget.
A contemporary 5kW solar system needs around 15-20 cells and a 25-35 m2 roof area. The area requirement solely depends on the watt power generation of the solar cells and how they’re slanted.
Additionally, Solar panel sizes depend greatly on the manufacturer and the type of system. For instance, solar grids built for commercial use are stronger and larger compared to cells for domestic usage. However, for a 5kW system, panels are typically 1.7 meters by 1 meter.
Critically check previous electricity bills to determine your home’s usual energy usage. You may figure out the size of the solar power plant to install on your roof by calculating the product of average household daily energy usage and the extreme sunshine hours in your area. Later by dividing the result by the panel wattage, you can get the required size of the panel. To define a range, consider the examples of low-wattage (150 W) and high-wattage (370 W). Consider a range of approximately 16-45 panels to produce 12,000 kWh/year. However, It is crucial to remember the area of your roof and the amount of sunshine it receives.
Once you have selected a model and size and purchased it, it’s time to learn how much energy it will generate over time. To do this, simply connect the panels to an accurate meter and follow the instructions provided by the installer or online calculator. It will help calculate how much money you are saving on monthly electricity bills when considering tax incentives available in some states (more information below). Finally, store all installation materials in case any future repairs or upgrades need to be made!
Net Metering:
Solar panel installation sizes vary depending on the desired energy production output. Choosing a power plan most suitable for your needs can help achieve greater savings and higher efficiency from your system.
If you’re considering installing solar panels, you’ve likely heard the term net metering. It is a program used in many states within the United States that allows homeowners to receive credits from their utility companies when excess energy generated by their solar panel systems goes back into the grid. It can result in significant cost savings every year – even if you only render a small amount of energy.
The net metering program is based on two key concepts: reciprocity and reverse billing. Reciprocity means that both parties benefit from the agreement, so it’s in everyone’s best interest to have it in place. Reverse billing implies that when a homeowner generates more energy than they use, they are billed for what they exported instead of what they imported (also known as “retroactive billing”). In other words, your utility company will credit your account with the extra electricity you generated and then bill your monthly electricity bill accordingly.
Solar Yearly Savings:
Solar energy is becoming increasingly popular yearly, with many people seeing the benefits of using solar panels to power their homes. It can save you money on your monthly electric bill; in some cases, they can pay for themselves within just a few years.
There are many reasons to invest in solar energy, and the financial benefits are certainly top of the list. Solar panels can pay for themselves and leave net savings for 25 years, with some customers potentially saving up to $90,000 per year. After installation costs (which may be partially covered through government tax credits) and an average electric bill comparable to the national average of $150 per month, most households will see a return on investment within five years.
On average, U.S. customers save about $1,500 yearly by going solar, totaling $37,500 over 25 years. However, these values are the lowest estimates and can vary from $10,000 to $90,000, depending on your region’s specific situations, climatic conditions, tax incentives, and roof size. The average household in the U.S. spends about $150 a month on an energy bill, and installing a solar system will immediately lower their bills. With current expenditure trends for startup costs plus existing energy costs, there are potential savings of up to approximately $33,000 over 25 years, even if electricity rates do not rise during that period. Every household has different needs so actual savings may differ, but they are likely to be higher than the cost contributed if energy prices do not rise.
Solar panels can pay for themselves and leave net savings throughout their 30-year life span. Installing residential solar power plants have greater cost benefit, with some customers potentially saving up to $90,000 in 25 years.
Hence, the yearly saving after installing solar panels depends on several factors. These factors include the size of your solar plant, the sunlight hours you receive each year, any shading on your system, and the type of your system. The most important factor in determining how much you’ll save is your current spending on power.
As the average energy cost in the United States is 13.83 cents per kWh, you may be committing an upto $1300 if you use 100 units. However, the variety is astounding, with rates climbing to more than 38 cents per kWh in Hawaii and falling below 10 cents elsewhere.
Final Words:
By following these simple steps – assessing your needs, researching different models and prices., and installing panels correctly –you can save money on your electricity bills today.
However, it’s important not only to think about how much money you could save by installing solar cells on your property but also how much energy you could save with solar panels over time!
With proper management and tracking of usage data via energy monitoring technology like smart meters, you could track your progress and better manage your spending on energy related to the sources of costly frustration in your home. Besides, a saving calculator can also help you smarten your monthly saving plans. So, what are you waiting for? Install solar panels and start saving today.
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Solgen Power is a solar energy contractor that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.
