Are your ever-increasing electricity bills the source of your headaches? If so, you should consider switching to solar energy at last. With the help of this cost-effective system, you’ll finally be able to save some money and add value to your household. A solar savings estimator will help you calculate your solar profit.
Does Going Solar Save You Money?
Before you make up your mind and finally decide to give solar energy a chance, you might feel worried about how big of an investment that might be. Especially if you don’t qualify for a solar loan, you may not be sure you’re ready for such a step. Still, you should know that switching to solar power will undoubtedly help you save for a rainy day. Even if you have to spend a lot initially, your money will find its way back to you over the years.
Still, it may be difficult to estimate just how much cash you’ll be able to save after installing a solar panel system. That’s because your monthly and annual savings will depend upon many factors. For example, you’ll need to take into account your location and climate. Also, you’ll have to think about your regular bills and local electricity rates.
Solar Savings Calculator
Now, let’s get into more detail on which factors will affect your solar savings. As you’ve seen, location plays a significant role in your household’s “ability” to generate solar power. That’s because the biggest precondition for getting solar panels should be the number of clear sunny days in your area. For example, you won’t be able to save the same amount living in Massachusetts and North Carolina.
Still, the most important thing to consider is how much you generally pay for electricity. Have your local electricity rates been draining your wallet in the past few years? As it goes, solar power isn’t cost-effective only in sunny places. Interestingly enough, the cities with the highest electricity costs are also the ones with the highest solar savings.
Luckily, there’s a way to calculate how much money you’ll be able to save with solar panels. Just go to your electric utility company account to find out the average of your last few electricity bills. Many online calculators will help you estimate your potential savings if you decide to switch to solar energy.
Calculate Your Solar Payback Period
You can also calculate how many years it will take until your savings have piled up enough to cover your initial investment. Multiply the cost of your solar panels by 0.26 (the tax credit you’ll get for installing this system). For example, if you plan on buying $20,000 worth of solar panels, your tax credit will be $5,200, and you’ll be left with $14,800.
Then, divide the amount of money you’ll pay for a system ($14,800) by how much money you typically give to your electric company annually (e.g., $1,500). What you get is a period of roughly ten years, after which your panels will have paid for themselves. On average, you’ll be able to cut your electricity bills by 15‒25%. And over 20 years, your overall savings might reach an astounding number of $10,000 to $30,000.
Final Thoughts on Estimating Solar Savings
If your high electricity bills don’t seem like something you’ll be able to handle in the years to come, it’s time to go solar. Buy a solar panel system that will cover your energy needs and help you cut your costs. Online calculators will enable you to learn the approximate amount of money the panels will save you over the years. All you’ll need to do is consider your current electricity bills and your location, and you’ll be able to get a rough estimate.