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We all know that solar panels have a positive, indirect protection for our environment. However, their benefit is not limited to lowering your carbon footprint. The solar panel installed by professionals like infinityenergy.com can help you do major electricity cost savings throughout the lifespan of the solar panel system.

Solar panels may require investment at the beginning, but you will save money in the longer term. 

This article gives you clarity on how much you can save by going solar. 

What Factors Impact the Solar Panel Installation Cost?

The only expense that you incur when going solar is the upfront charges of a solar system installation. With local incentives and rebates, the installation of a solar panel will become easier. This helps strengthen the return on investment. 

To compute your energy savings, you need to know about your power usage, projected solar production, local electricity rates, and any state/federal solar incentives. All these factors impact the solar panel cost. It is important to note that these values can vary with respect to your residential location. 

How to Find Out Your Energy Savings When Using Solar Panels?

The biggest benefit of solar panels is to save money while lowering the utility bill. Due to this appealing advantage, an increasing number of people are now considering to set up solar panels in their residential and commercial premises. 

The average home saves around $10,000 and $30,000 over the course of the lifespan of a solar panel system. The amount of money that you will save is dependent on various factors that includes:

  • Direct hours of sunlight that you receive every day
  • Angle and the size of the roof 
  • Local electricity rates 
  • The estimated rate of Inflation

Even after using solar panels, you will receive a utility bill as your property is connected to the electrical power grid.

How Much Money Can You Save On Utility Bills by Going Solar?

There are certain steps that you need to follow to determine the money that you save on your utility bills. 

Step 1: Compute how much you spend on electricity per year. 

Step 2: Consider the volatility of utility prices 

Step 3: Estimate the utility rates in future years. (Expect an increase in electricity rate per year by a certain percentage)

The following table provides energy savings projections for different states with solar panel installation.

Assumptions: 

  • System size: six kilowatt 
  • Electricity requirement: 10,972 kw-hrs per year 
  • Electricity rate inflation: 2.2%
  • Percent requirements fulfilled by solar panels: 94% 
  • Electricity rate: Average of electricity in a state as of April 2020 
Avg price of solar system Avg utility rate ($/kWh) Utility savings
New York $13,720 $0.1733 $30,584
Arizona $11,100 $0.1278 $21,572
Colorado $13,852 $0.1213 $17,157
Florida     $11,944 $0.1171 $17,993
Texas $12,476 $0.1230 $18,968
Massachusetts $13,764 $0.2324 $45,648
Maryland $13,187 $0.1322 $20,610
California $13,054 $0.2047 $39,277
New Jersey $12,388 $0.1593 $28,337
Washington $11,899 $0.0967 $12,822

Conclusion

Once installed, a solar panel can stay for at least 25 years. The savings that you get from it are real. The amount you save depends on various factors including the availability of state and local city incentives. The solar savings forecasts are quite predictable and prove to be a wonderful way to reduce your utility bills.

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