Can Solar Panels Save You Money Every Month?

We live in trying times, as global warming is wreaking havoc on the environment, with glaciers disappearing and ocean temperatures increasing.

But we also live in promising times, as solutions to the energy crises are abundant. Solar power is at the top of the priority list, as it can power our homes, business, and even vehicles with the most abundant, renewable resource in the galaxy.

And the good news is that what used to be out of reach for most Americans is cheaper than ever before. In the past decade, the cost of solar panels has dropped nearly 90%. 

But they are still a major investment. The question homeowners have is if they really save you money each month. Keep reading below to see exactly how solar panels can help you and help the planet at the same time.

Cost of Traditional Electricity

The average household in America is spending $122 per month on their electric bill, or almost $1,500 per year powering their home.

In some states, the amount is much higher, such as California, Hawaii, Florida, and New York.

The problem though is that this number goes up every year. The cost of electricity is always going up, as limited resources and geographic tension can drive up the price.

As a house depends on the electric grid, somebody else owns your power. Your power company can increase the price of electricity at the drop of a hat. And they often do, especially during high-demand times like summer afternoons.

When everyone is running their AC systems, they will crank up the price of power. And if they can’t keep up with demand, the power might go out.

Considerations for Solar Panel Installation

For most households, the addition of solar panels doesn’t eliminate the electricity bill entirely but greatly reduces it.

The amount of money you save, however, is dependent on many different factors. The type of panels you install will determine how much light is converted to power at a given moment.

The number of panels installed is a big consideration as well. And the direction of your roof will play a large role.

Generally, solar panels do best on a south-facing roof, where they will get the most direct sunlight throughout the year.

On top of that, your local climate is a big factor. Sunnier places make solar panels more efficient, while cloudier places lag behind.

Saving Money With Solar

Owning your solar panels is the best option if you truly want to save money each month. You could lease the panels, but you’d be making monthly payments still, though it might be less than your current electric bill.

By owning the panels outright, you enjoy the most savings. The average owner of a solar panel system will enjoy annual savings between $1,000 and $2,000 per month.

Over the course of 20 years, that adds up to tens of thousands of dollars you aren’t paying to a power company. 

Regarding monthly cash flow, you can typically expect your electricity costs to drop between 50% and 90%, which you can read more about on https://blueravensolar.com/blog/how-much-do-solar-panels-save/.

And these savings are even more beneficial when you remember that traditional electricity is increasing in price every year. Solar panels are therefore a major hedge against inflation. 

Generating an ROI

For most homes, it costs between $10,000 and $20,000 to install a new solar panel system. Depending on how much you save monthly, it can take between seven and 12 years to recoup the initial investment. 

After that payback period, you are sitting on pure savings each and every month.

Luckily, for new installations, there are major tax incentives for installing solar panels. The sooner you install, the sooner you will start saving. 

Solar Panels Can Make You Money

The primary benefit of solar panels is that they help you save money. A lower electric bill, or ideally the elimination of the electric bill, can put thousands of dollars into your pocket every year.

But it’s not just about solar savings. Solar energy can make you money, too. Here’s how you can increase your cash flow and wealth simply by installing solar panels at your home.

Solar Panels Improve Home Value

Solar panels aren’t cheap. They are a major investment that takes most homeowners years to pay back and start producing an ROI.

But one of the benefits of making the investment is that it can boost the value of your home. Depending on where you live, the addition of solar panels can increase your home’s value by 4%. 

In some states, like New Jersey, the average home value increase is nearly 10%. 

That’s a nice boost, whether you plan to sell in the future or plan to remain in the home indefinitely. The extra equity increases your net worth and gives you more borrowing power when it comes to home equity loans or lines of credit. 

Make Money With Net Metering

One of the best aspects of solar installation is the net metering program in place in most areas. When your solar panels are installed, they can actually be hooked up to your local electrical grid.

At times when your home is generating more electricity than can be consumed at that moment, you can automatically send the excess to your local power company.

You are essentially selling power to them. In return, you receive credits.

Then, when your home isn’t generating enough electricity to power your home, such as at night time or during cloudy days, you draw electricity from your power company.

Instead of paying for it, however, you use up any credits you’ve acquired.

If any credits are left over at the end of the year, the power company may send you a check, putting additional money in your pocket. 

Go Solar Today

So solar panels can save you a lot of money. On top of that, they can even make you some extra money. And with federal tax incentives and rising electricity costs, there’s never been a better time to make the upgrade to solar.

Looking for more money-saving tips and tricks? Visit our blog to find other helpful articles now.