Solar panel systems help you save money and protect against rising utility costs. On average, Eco Solar Home Improvement solar shoppers achieve payback on their system in just seven and a half years, and they continue to save for the rest of their system’s 25+ year lifespan. However, your 20-year solar savings depend on where you live. There are a few major factors that influence what you can save:
- Electricity rates: If you live somewhere with high electricity rates compared to other regions, your solar energy savings will be higher thanks to avoided electricity costs.
- Local financial incentives: If your state or local government offers cash rebates, tax credits or incentives such as SRECs, you’ll save even more.
- Solar financing: There are three major solar financing options: cash purchases, solar loans, and solar leases/PPAs. Each option offers a different value proposition and long-term return.
Advantages of solar energy: How much would you save?
The example below illustrates what your basic savings might look like before applying any state or local incentives, depending on how you decide to finance your solar panel system.
For this scenario, we’ve assumed a monthly electric bill of $100, and an annual electricity rate increase of three percent. The net installation cost equals the total cost of going solar minus the 30 percent federal tax credit for solar.
Keep in mind that under the assumptions above you would expect to pay your utility approximately $25,000 for your electricity over the next 20 years. This $25,000 is the “cost” of not going solar.
For a more accurate estimate of the savings, you can see by going solar, One of our Energy Analyst will come to the comfort of your home and answer any questions you have. Our Energy analyzes your roof, real-time cost data, and applicable incentives in your area to provide you with a tailored estimate of how much solar can save you.
Savings with solar in a state without rebates or incentives (e.g., California)
These savings are just the beginning. In many cases, there will be state, local or utility programs that can reduce your out-of-pocket costs or even let you generate income from your solar energy system: