One of the biggest relief solar panels bring is saving money on your utility bills. But have you ever wondered how much your solar panels actually save for your home?
Solar savings depend on numerous factors. How much you save can be dependent on your location, energy usage, and the size of your solar system. Moreover, solar cash rebates and incentives such as tax credits also ease up the burden of having to pay more for your electrical bills. They don’t just make the installation easier, but they also cut down your energy expenses.
Each state has different solar laws and incentives. The total electricity cost may vary, depending on the rates and metering on each state and utility company.
Different solar brands have different performances and energy efficiencies. Other solar panels may have the ability to absorb more energy from the sun, thus increasing solar savings.
On average, solar panels process 15% to 22% of solar energy into electrical energy. Its placement, orientation, and weather conditions may affect the output and performance of the solar panels.
Solar System Size
Larger systems mean larger energy savings. Since solar panels utilize the sun’s energy, it is more likely for these systems to produce more electricity to power your home. The only downside is that these systems will cost you more upfront.
SOLAR PANEL SAVINGS
Solar savings do not only refer to how much you saved but also refer to the avoided energy costs from your solar installs. To calculate your solar savings, you need to determine the total electricity consumed each year. As of 2022, the average annual U.S residential utility customer uses around 10,715 kilowatt-hours (kWh) yearly, which is an average of 892 kWh per month. When multiplied by the national average electricity rate of $0.14 per kWh, you will see that the average electric bill is $125.
By installing a 6kW solar panel system, you could potentially save around $1,500 annually. According to SolarReviews, the average cost of a 6kW solar panel installation is $3 per watt or is $0.003 per kWh. The average solar savings for the top 50 solar cities are listed below:
Disclaimer: All values are SolarReview’s calculations based on the rates of the top utility providers and the laws of each state. These are all subject to change.
Making the switch to solar can be hard, but it shouldn’t be. If you need an estimate on your solar savings, our solar experts can help you! Click the “Free Quote” button to get a free estimate and get the assistance you need from a local professional!