How Do Solar Panels Save Me Money

Solar energy saves michelle and graham around 300 every year.

How do solar panels save me money.

Local rebates and incentives can make solar panel installation easier and strengthen return on investment. 1 save on your electric bill just like harold you will see a dramatic drop in electricity costs when you use solar panels. See what michelle and graham saved in detail. Here are 5 ways mccoy said you can save money by adding solar power to your rural home.

How going solar saves you money. But the true cost of solar panels and whether they ll help you save money depends on a few key factors. Thanks to a policy called net metering which is available in most states energy your solar panels produce that you don t use immediately is sent to the grid in exchange for credits on your electric bill. In addition to reducing your carbon footprint residential solar panels help you save money on your utility bill.

Once solar panels are installed and functioning they will start to save money right away because they will reduce demands on the electrical grid. One of the biggest advantages of installing residential solar panels is a 30 federal tax credit on the total cost of a system. This is assuming a system size of 6 kilowatts which is common in the us. The panels are installed on the roof of your home and harvest energy from the sun serving as your own personal mini power plant.

On average installation and the system together can run between 15 000 and 25 000. The estimate also considers the average sunshine available in the country and the average electricity price of 13 34 cents per kilowatt hour reported by the energy information administration. If you install a residential solar system in your home you ll drastically reduce your carbon footprint save thousands of dollars on your electric bill over the lifetime of the system which averages about 25 years increase your property value and achieving a significant return on investment well over 100. That means homeowners but not renters can subtract the credit from the federal income taxes they owe in effect reducing the price of their solar purchase by nearly one third.

When you install solar panels on your roof you are essentially turning your home into its own mini power plant. This represents a return on investment of 20 p a. You generate renewable energy reducing or eliminating your electricity costs altogether. Some people go entirely solar disconnecting their house from the electrical grid or using panels to power a home which is outside an area covered by public utilities.

The savings you may see by going solar are dependent on two simple factors.