Even though solar panels were once an expensive endeavor, nowadays, more and more people are going solar. As a matter of fact, according to Pew Research Center, 6% of US citizens have already installed solar panels. Additionally, 46% of homeowners are considering switching to solar energy in the near future. And with the constant push for renewable energy, these numbers are only expected to rise. But if you are one of those still on the fence about solar energy, you might have a few questions regarding its benefits. The chances are that you are already wondering how much money could I save a year by going solar. And that’s exactly what we are here to answer by taking a look at the solar industry as a whole.
What is Solar Energy?
Solar energy refers to all types of energy that are harnessed from the sun using solar panels. For example, you can convert solar energy into either heat or electricity, depending on your home’s needs. And if you generate too much electricity, you can always store it in batteries for later usage.
Why is Solar Energy Cheaper?
As previously mentioned, in order to use solar energy, you will have to install solar panels. And while they used to be expensive, they are now affordable due to technological advancements. Not only that, but government subsidies can also reduce the cost of going solar by a significant percentage. And if that wasn’t enough, most banks are also offering loans for people looking to install solar panels.
How Much Money Could I Save?
Generally speaking, the answer to how much money could I save a year by going solar depends on a variety of factors. The most important thing to consider is the size and power of your solar panels. Besides, you will need to consider whether or not you want to remain connected to the national energy grid.
Going Off the Grid
If your solar installation is powerful enough, you can completely remove your home from the grid. As a result, you won’t have to worry about any energy bills in the future. However, that requires an impressive number of solar panels and a significant initial investment. It’s worth noting that, depending on the price of electricity, you will be able to get back your investment in a couple of years.
But how much money would you save? Considering that the average electric bill is $100 a month, you will end up saving at least $12,000 a year. And with the constant increase in electricity prices, that number will only go up every year.
Staying On the Grid
Another option is to partially make up for your energy consumption with a medium-sized solar panel system. That way, you will reduce your electricity bill without disconnecting from the national grid. What’s even better is that staying connected will allow you to use Net Metering.
In other words, you will be able to donate some of your solar energy to the grid and receive even more price cuts on your bill. For example, if your house consumes 1000 kWh each month, yet your solar installation sends 800 kWh to the grid, you will only be billed for 200kWh.
But what are the numbers? Depending on the state you live in and the amount of energy your system generates, you can save as much as $1,000 every year. And if you plan to use net metering at your system’s maximum capacity, you may double that number.
How much money could I save a year by going solar? — anywhere between $1,000 and $12,000, depending on your solar panel system and energy consumption. However, while any solar panels can be expensive, their price continues to drop. And thanks to the widespread adoption of renewable energy, it’s only a matter of time until solar panels will become more affordable than ever.