Let’s get straight to the point. As much as we love to give you a one-word, straight and direct answer, that’s not the case here. How much money you can save with solar depends on a variety of factors. These factors include
1. Size of your system,
2. The climate in your area,
3. Your panel position,
4. Your daily average consumption,
5. The cost of power in local utility company, etc…
If you are on-grid, the energy your panels generates goes to your daily consumption first and the excess energy goes to the grid. If you are off-grid, the excess energy gets stored in the battery for later use. If sent to the grid, after net metering, you may earn some money according to the rates of your local utility company. But keep in mind that, the rate at which you purchase the power from the grid is always higher than when you sell them to the grid.
The amount of excess energy your panels produce depends on the size of your panels and your daily consumption. If you are already consuming more than you generate, then you’re losing money. On average, the households who installed solar save anywhere from 70 – 100% of their power bills. But this depends on the cost of power in your jurisdiction.
Also, one can hugely save money from tax incentives. But this applies to those who bought and installed solar, not to those who lease it or entered PPA. The Federal Investment Tax Credit (ITC) provides a tax credit for homeowners who install a solar panel system. The credit is 26% of the cost of the system. And it can be claimed over several years. On top of the Federal ITC, many states also offer rebates, tax credits, and other incentives for going solar.
In addition, according to research, homes which have pre-installed solar have a higher market price. Meaning, if your house has a solar system installed, the value of your house raises from $15000 to $20000. This becomes a game changer when you plan to sell the house.
Overall, consider this: Even if you don’t go solar, you are going to pay energy bills every month. But with solar, you’re at least increasing your property’s worth. Also, once the payback period ends, you own your power. You no longer have to pay unrealistic inflation-adjusted prices to utility companies.
So to conclude, even though some may save only a little by going solar, in the long run, it definitely pays off.
