Understanding Your Electric Bill Savings With Solar

You may have heard that solar panels can save you money on your monthly electric bill. The next question we get is “How much money can I save?”

While every home solar installation is different we wanted to take a look at what you can expect when you buy solar panels.

What Determines How Much You Save?

How Many Solar Panels You Install

The first step to determining your savings with solar panels is finding out how much solar energy your home can produce. Your solar energy production is the product of how many solar panels you install at your home.

A bigger system creates more energy for your home but also comes at a higher cost. However you want to install a system that is big enough to equal or out produce your energy consumption.

How Much Electricity Your Home Uses

The second major factor to determining your savings with solar is how much electricity your home is using. Throughout the year a homes energy usage fluctuates. Your solar panels should produce more energy than your total electricity usage in a year to create savings.

For this reason it is best to think about your future consumption throughout the year and future years in your home. If you plan on buying and charging an electric vehicle or installing a heated pool for examples, you will want more solar panels to cover your future needs.

Electricity Rates

Depending on the city or town you live in and your utility company, there are different electricity rates that determine how much you pay for your electricity.

Towns with higher electricity rates will have higher electricity bills. Electricity rates also change twice a year and are constantly increasing every year making electricity more expensive.

The benefit of solar is after purchasing solar panels you no longer need to worry about electricity rates since you are not using electricity from you utility company. 

Your Bill After Going Solar

How much will my electric bill be with solar panels?

Unfortunately this is not an easy question to answer without seeing your current electricity bill. However, it is possible and common that solar panels will eliminate your electricity bill completely.

In addition to a $0 electric bill, if your town has net metering you can acquire credits for unused energy, meaning you may receive a negative bill!

What will my savings on my monthly electric bill be?

Your savings will also likely vary each month depending on your usage and production. However, you can expect a consistent expense if you took out a loan or leased your solar panels. No more surprises each month.

As an estimate, you can expect to save $1,500 to $4,000 a year. Over the 25 year lifetime of your solar panels this would be $37,500 to $100,000 of savings.

Finding A Solar Installer Near You

To maximize your savings it is important to work with an experienced and knowledgable solar installer.

Before signing up for solar you should have a complete understanding of your household’s energy needs and proper expectations for what your savings will be.

Our partners at Isaksen Solar are able to give you a no pressure solar consultation to understand your situation.

If you want a better understanding of how much you can save with solar give them a call, (508) 717-3820, or get started on your quote today.