Savings With Solar: How Solar Energy Can Save Money on Monthly Bills

As solar energy is becoming affordable and popular, more and more people are investing in their own solar panel systems. While there are numerous benefits of solar panels, like reducing carbon footprint and energy independence, the main reason people are choosing solar is to save money on their monthly electric bills.

In this article, we will discuss how solar energy enables homeowners and business owners to save on their bills while highlighting the long-term financial advantages, the payback period for solar installations, and strategies for maximizing savings from solar energy.

The cost of solar panels and other solar equipments have dropped significantly over the years, making solar installations more accessible to homeowners and businessowners.

As of 2024, solar energy systems in the US cost between $15,000- $25,000 . While this range is an average, solar installation costs depend on numerous factors such as location, size of home, number of required panels, brand and quality of panels, tax incentives available, etc.

Despite these varying factors, the cost of solar panels and installation continues to decline due to technological advancements and increased competition in the market, making 2024 and 2025 a great time to get upgraded to solar!

While the above-mentioned average cost of solar may seem a lot and a significant investment, it is crucial to remember that solar brings long-term savings with it and energy independence.

By installing solar panels, homeowners lock in on their current electricity rate for the next 25-30 years. With the rising cost of traditional electricity, solar panels are going to save homeowners not hundreds, but thousands of dollars on their monthly electric bills over the lifespan of their solar panels.

In fact, studies by EnergySage have shown that homeowners who switch to solar energy can save an average of $10,000-$30,000 over 20 years . In addition, with the availability of tax incentives and rebates, the initial cost can be significantly reduced. This makes solar energy a smart financial investment in the long run.

Utilizing solar energy can help homeowners save money through various ways, including:

As mentioned earlier, solar panels generate their own electricity, which means homeowners can reduce or eliminate their reliance on traditional electricity sources. This leads to significantly lower or no monthly bills from the electricity grid.

The cost of traditional energy tends to increase over time due to factors like inflation and scarcity of resources, resulting in higher monthly bills. With a solar system, you can lock the electricity rate which provides long-term protection against increasing energy costs.

Solar panels have become an attractive feature for home buyers due to their long-term benefits, which can increase the value of the property significantly.

Studies show that homes that have solar panel systems, generally sell for more than homes without them, providing homeowners with an additional return on their investment. This means that not only do homeowners save money on their monthly bills, but they also increase the overall value of their property!

Being a clean energy source which is good for the environment, the government offers tax incentives and rebates to encourage homeowners to switch to solar energy. These can significantly reduce the initial cost of solar panel installation, making it even more financially beneficial in the long run.

In addition, some states offer net metering programs which allow homeowners to sell excess electricity generated back to the grid, further contributing to their savings.

Examples of these incentives include:

It is important to research the available incentives in your state before making any decision to invest in a solar panel system.

Utility companies generally offer Net Metering, which is a program that will allow homeowners to sell excess energy produced by their solar panels, back to the grid. Net metering not only helps in reducing the monthly bills but in some cases also helps earn money.

The amount of money you can save with solar energy depends on various factors, some of these factors are:

Household energy consumption is an important factor to keep in mind when installing solar panels. If your electricity bill is low, the savings with solar may not be as significant. However, if your household electricity bill is high, you can expect to see greater savings with an appropriate size of solar installation.

Before installation, it is important to determine what solar installation size is best for you, based on your usage and consumption habits to maximize savings. Get a quote from Solar Savings Estimator to get a better idea of how much money will solar panels save you.

The type and efficiency of solar panels play a significant role in determining the savings you can achieve with solar energy. Higher efficiency panels like monocrystalline may cost more, but they will maximize solar energy savings in the long term.

Let's discuss the types of solar panels in detail:

The size of solar panel systems can also impact savings through solar. Generally, the larger the solar panel system, the more electricity it will produce. This electricity can be used and stored, while the excess solar energy can be sent back to the grid.

It might seem like a good idea to install a large solar system, but it's important to consider your energy needs and consumption habits before making a decision. Installing a solar system that is too large for your needs can lead to overspending on the initial installation costs and reduce the savings with solar panels.

The geographical location of your home also plays a role in determining solar energy savings. Areas with high levels of year-round sun exposure, such as states like Texas and Florida, will likely see greater energy production and therefore, bigger savings with solar.

In contrast, areas with lower levels of sun exposure or frequent cloudy days may see less energy production and smaller savings with solar panels. It's important to research the average amount of sunshine your area receives to get a better understanding of potential energy production and savings with solar.

The electricity cost varies from state to state. States with higher rates of electricity offer greater potential for savings as your system will offset expensive grid electricity. On the other hand, if electricity rates are lower in your area, then your potential savings may be smaller.

Overall, understanding these key factors influencing solar savings, not only helps you determine if solar energy is a viable option for you but also allows you to make informed decisions about installation and maximize your potential savings.

The payback period for solar panel systems refers to the time it takes for the initial cost of the investment to be recovered through savings and/or generated revenue.

The National Renewable Energy Laboratory reports that it can take anywhere from 4 to 10 years for a homeowner to see a return on their solar panel investment, which can vary based on factors including local electricity rate, available incentives, and the efficiency of your system.

Solar power systems have high upfront costs, but the long-term savings can far outweigh these initial expenses. Here are some tips to help you maximize your solar energy savings:

The federal, state and local governments offer various incentives to homeowners and business owners who make a switch to solar energy. It is important to research and take advantage of these incentives, as they can significantly reduce the overall cost of installation.

If you are from Texas, refer to our guide on solar incentives in Texas .

As mentioned above, choosing the right system size is important when maximizing savings with solar. To determine the appropriate system size for your household, consider your energy consumption habits and needs or reach out to local installation companies.

While it may be tempting to opt for a cheaper option, investing in high-efficiency panels can maximize your long-term savings by producing more energy. Consider monocrystalline or polycrystalline panels instead of thin-film options.

The efficiency of solar panels reduce over time, so it is better to invest in higher-efficiency panels that will produce more energy and last longer.

Keeping your solar panels clean and well-maintained can ensure their optimal performance, resulting in maximum energy production and savings.

In conclusion, understanding the key factors that influence solar savings (such as location, system size, and efficiency) is crucial in making informed decisions about investing in solar energy.

By researching available incentives, choosing the right system size and type, monitoring usage habits, and maintaining your system, you can maximize your long-term savings potential with solar panels.

With advancements in technology and decreasing costs of installation, now may be the perfect time to consider switching to clean and renewable solar energy. So don't wait any longer, install solar panels and reap its benefits for years!