How Much Do Solar Panels Save?
Solar systems can reduce reliance on grid electricity and may lower monthly energy costs. However, savings will vary depending on several factors. These are outlined below.
Location and Energy Use
If you live in a sunny climate, your panels can generate enough power to help you rely less on expensive grid electricity. The more sunlight your home receives, the more energy your panels may be able to generate. However, how much energy your home uses will affect your monthly electric bill. If you use a lot of energy, you may need to use more power from the grid, no matter what kind of climate you live in.
Solar System Size and Installation Cost
The size of your solar system can impact how much solar panels save on monthly electricity bills. Generally speaking, the larger your system, the more energy it can generate, and the less you’ll need to rely on the grid. However, larger systems typically cost more money to install and may increase your upfront costs.
Tax Credits and Incentives
Several tax credits and incentives are available to make installing solar more affordable for homeowners. These credits may reduce the cost of installing a solar system and increase your savings over time. The most popular of these credits is the Federal Solar Tax Credit, which gives solar owners a 30% tax credit for the total cost of their system. Many states also offer rebates or property tax credits for solar owners. Some utility companies have net metering programs, allowing homeowners to sell unused solar energy back to the grid for credit.