How much money can you really save by switching to solar ? How long will it take for your solar panels to pay for themselves ? Will solar panels add very respect to your home ? today, we ’ re answering everything you need to know about saving money by switching to solar .
Yes, You Can Save a Lot of Money by Switching to Solar
The benefits of solar are obvious. You ’ re taking energy that already hits your house every day, and turning that energy into something available. The entirely “ downside ” to solar is the upfront cost. once you pay the upfront cost, the rest is profit. You can save a considerable come of money every calendar month by switching to solar .
In fact, some people save then much money on solar that they sell energy bet on to the electrical grid. so not lone do they save money using solar – they actually make money. More and more states allow you to do this.
Ultimately, the average home will save about $600 to $800 USD per year. That number is based on the average electricity usage of an American household and the average cost of electricity in the United States.
You can find some information on-line that shows even greater cost savings. This map, for example, claims that residents of Hawaii can save $ 64,000 over a 20 class period from solar panels, while residents of California can save $ 34,000 and residents of New York can save $ 31,000 .
Your Cost Savings Are Affected by Several Factors
We ’ vitamin d love to tell you that every family in the world will save precisely $ 700 per year by switching to solar panels. unfortunately, that ’ s not the case. The particular amount you save by switching to solar is impacted by a number of different factors. In some situations, your savings could be deoxyadenosine monophosphate little as $ 100 per class. In other situations, you could save $ 10,000 per class .
here are some of the things you need to consider :
Tax Credits and Government Incentives
Countries around the worldly concern offer tax credits for solar control panel initiation. Governments are incentivizing people to add solar panels to their homes. That means you can substantially reduce the monetary value of initiation – which is your biggest expense. As you can imagine, these tax credits vary widely around the worldly concern. In general, cheery states like Arizona, California, and New Mexico, and cheery countries like Australia, are more inclined to give tax credits to residents for installing solar panels. Check DSIREUSA.org to find incentives across the United States .
The Cost of Electricity in your Region
In some parts of the populace, electricity is brassy and plentiful. Regions with existing solar infrastructure, wreathe ability, or hydroelectric power may have cheap electricity rates, for example. In the United States, the median price for electricity is 12 cents per kilowatt hour ( for position, an average family uses about 908 kWh per calendar month in electricity ) .
Idaho, North Dakota, and Washington have the cheapest electricity rates in the United States at approximately 8.0, 8.1, and 8.2 cents per kWh, respectively, while Hawaii has the most expensive electricity at 33.2 cents per kWh. The average US family would have a $ 73 electrical bill in Idaho – and a $ 300 electrical poster in Hawaii. obviously, Hawaiians have more to gain from solar panels than people in Idaho.
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internationally, electric rates vary wide. Canada has relatively bum electrical rates, with residents paying about 10 united states cents per kilowatt hour. In Australia, they pay about 29 cents per kWh. In the EU, countries like Spain pay 30 cents per kWh, Germany pays 35 cents per kWh, and Denmark pays a whopping 41 cents per kWh .
The Average Price of Solar Panel Systems
The average solar panel system clocks in at about 5kW. As you might expect, the cost of facility varies wide across the United States and around the global. In 2017, you can expect to pay about $ 12,000 for a 5kW solar arrangement in Arizona and about $ 15,000 for that like solar panel organization in Washington or Massachusetts .
This is where you get to do basic mathematics. Remember up above, when we told you the median US family can save about $ 700 on their electricity bill every year with solar panels ? That means your solar system will pay for itself in about 20 years .
In 2016, the average person paid about $ 3 per watt of install solar panel on their home. A 5kW organization, by the way, requires about 500 square feet of ceiling space. That may sound expensive – but solar gore prices have dropped 70 % since 2006 .
The Rising Cost of Electricity
The price of electricity has systematically risen over the by few decades. Most reports show that the price of electricity rises about 3 % per year – which is more than the average rate of inflation. That means the best time to invest in solar panels is right now .
The Amount of Solar Energy Your System Will Produce
5kW systems are peculiarly popular. They produce a reasonable measure of energy and they ’ ra not excessively expensive to install or maintain. You besides don ’ t need an enormous ceiling. however, some people install systems equally small as 3kW or 4kW, while others install systems arsenic big as 15kW .
If you can afford it, and you have the roof size, then larger solar control panel systems will save you more money in the long play, all things considered. The price of initiation per kWh goes down when you ’ re installing more solar panels.
So How Much Can You Really Save?
Most reports show that you ’ ll save about $ 600 to $ 800 USD per year on your electricity charge by switching to solar .
That number is based on the average price of electricity in the United States, the average electric consumption of a family in the United States, and the average solar empanel initiation size. In reality, that act can range from $ 400 to $ 2000 per class for an average family in the United States – specially if you ’ re comparing an electrical bill in Hawaii with an electrical bill in Washington .
ultimately, most people agree that the mathematics makes smell on solar panels – specially if you plan on living in your home for a long time period of time and have extra cash available nowadays. It ’ s a value-adding investing that is guaranteed to save you tens of thousands of dollars in electrical bills over a multi-year menstruation .