Solar panels seem to be the new thing in conscious energy these days and with so many trendy investment opportunities, it is hard to know if investing in something is really going to “save you tons of money.” However, saving money through reducing the price on your electricity bill by cutting down the amount of energy you use is no fluke. Solar Panels give you the ability to save money by creating a natural source of energy that has the ability to power your home. If you’re looking to save a ton of money, it really depends on a few key factors:

  1. Direct hours of sunlight
  2. Local electricity rates
  3. Size of your pool

If you’re interested in understanding how much solar panels save on your electric bills, you first need to calculate how much you’re spending on electricity every year. For example, the average annual electricity usage in a U.S. household is 11,000 kilowatt-hours (kWh). If you were to multiply that by the national average electricity rate ($0.1301). You would get how much you’re spending on electricity every year. The typical American household spends around $1,430 dollars a year on electricity alone.

 

2018 Solar panel savings estimates by state table
State Average Price
(6 kW Solar System)
Average Electricity Rate
Per State ($/kWh)
20-Year Savings
This is a solar panel savings table found on EnergySage.com
Arizona $11,214 0.1226 $16,866
California $13,566 0.1877 $49,424
Colorado $13,314 0.1202 $14,216
Florida $10,584 0.1247 $17,976
Massachusetts $13,818 0.1936 $30,523
Maryland $11,550 0.1335 $19,026
New Jersey $13,188 0.1534 $19,655
New York $14,154 0.1781 $26,637
Texas $12,390 0.1140 $13,720
Washington $11,802 0.0973 $10,483

 

 

Reasons to Install Solar Panels

If your average monthly electricity bill is high, and you’re living in an area with high energy rates than it is worthwhile installing solar panels in your home while the 30% tax break is in place. It is not only amazing for your wallet but also good for the environment. Here are a couple of reasons why you should invest in solar panels:

  1. The price of energy is not dropping
  2. Solar Panel installation has improved and prices have fallen
  3. Installing solar panels provides a long-term subsidy benefits
  4. Save money on your pension by reducing energy costs on your monthly electricity bill
  5. Solar panels are long-lasting and require little upkeep

 

Are solar panels efficient?

Some solar panels convert 22% of their available energy into electrical power. This is an actually amazing number if you consider the fact that we are paying a lot of our electricity bills every month. The solar panels are made of solar cells. A cell is a small disk of a semiconductor like silicon. They are attached by wire to a circuit. As light strikes the semiconductor, light is converted into electricity that flows through the circuit. As soon as the light is removed, the solar cell stops producing power.