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Technology

How Much Do You Save With Solar Panels? The Basics Explained

by Michael George February 2, 2022
written by Michael George February 2, 2022

Statistics from the SEIA tell us that the price of home solar panels is now 70% cheaper than ten years ago. The average price of a solar installation is still far from cheap, though.

Most installations cost around $12,000 after you’ve deducted your federal tax incentive, depending on the types of solar panels you choose. However, buying solar panels will save you massive amounts on your future electricity bills.

So, the question on everybody’s mind right now is, ‘how much do you save with solar panels, and is it worth it?’. Keep reading to find out more.

Electricity Savings With Solar Power

There are three ways to save on your electricity bill when you install solar. These are:

  • Off-grid electricity
  • Net metering
  • Power Purchase Agreements

With off-grid electricity, you will never pay an electricity bill again, since you get all your power from your solar panels, or other sources, like gas.

With net metering and PPAs, you can use electricity from the grid, but you pay vastly reduced bills.

Net metering means you still access the grid when needed, and you can also supply power to the grid from your PV panels. In return, you’ll receive a credit on your electricity account equal to the amount of electricity you provide.

With a PPA, the power company pays for your solar panel installation and supplies you with electricity from their solar-powered grid at a vastly reduced rate.

It’s best to speak to solar installers near you for advice on the best solar panels solution to suit your home and budget.

How Much Money Can You Save With Solar?

The amount of money you can save with an off-grid solar system depends on how much you’re paying for electricity now.

You’ll save 100% on your bills with this kind of system. You might pay some extra costs if you use gas in some appliances or fuel for a backup generator.

In this way, the average American family can save between $10,000 and $30,000 during the lifetime of their solar panels. This figure varies depending on the cost of your solar installation as well as annual electricity price hikes.

If you opt for net metering or a PPA, solar panel savings amount to 20% or more on your regular electricity bills. Your savings depend on the terms of your agreement with the electricity provider.

How Much Do You Save With Solar Panels, Really?

When considering the question, ‘how much do you save with solar panels?’, you should never lose sight of the fact that your solar panel installation saves more than money.

It also saves an aging grid from supplying your home and cuts down on coal consumption to produce electricity. In this way, solar reduces the number of carbon emissions emitted by your home, helps curb global warming, and contributes toward saving the environment.

Carbon emissions and the resultant global warming will inevitably cause the extinction of all life on Earth. So, you could say the most important thing you save with solar is our lives.

Would you like to discover extra insights about the world around you? Browse some more of our articles.

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      Why Online Seminar Classes are the Best

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      Why Radiology Continuing Education Is Important

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      What Are the Career Benefits of Getting a Master’s College Degree?

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      Health

      Socializing at Every Age: The Benefits of Connection and Community

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      Hair Transplant in Istanbul: A Comprehensive Guide to Vera Clinic’s Expertise

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      Safeguarding Infants: The Risks of Toxic Baby Formula

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      Manual Handling Challenges in Warehouses and Fulfilment Centers

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      Restoration Services in Iowa: Rebuilding and Renewing Properties with Excellence

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      Supercharge Your Financial Management with Consumer Bill Pay

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      What Topics Must an OSHA General Safety Training Course Have?

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      The Best of the Best: Top Things to Do in NYC This…

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