One of the main reasons that homeowners choose to install solar panels is the amazing savings on energy bills. Not only do most solar panel owners breakeven on their investment, they can save a lot of money especially over a long period of time. If you’re thinking about installing solar panels, then it’s crucial to measure up the pros and cons and find out how much you can save. The initial installation costs can be a set back for some people, but this article will look at the yearly costs and savings of solar panels on electricity bills, so that you can make an informed decision.
How much can solar panels save?
If you want to save money on your electricity bills with solar panels, then you need to know how much you spend on electricity each year. The savings will depend on the usage of your household, so the best way to calculate your usage is by multiplying your average annual usage in kWh by your electricity rate. Then you will know how much you currently spend on electricity.
According to EnergySage, the average American household spends around $1,430 on electricity a year, and would break even on a solar energy system in 7 years, but this can depend on the city. To find out more about what you can save, check out our blog post on whether solar panels really save you money.
How much do solar panels cost?
So, the savings can be great with solar panels, but what are the costs? An average solar system costs $13,188 after tax credits and is decreasing all the time – being six and a half percent lower than it was a year ago.
As with the savings, the costs of installing solar panels will vary depending on your usage and will vary from location to location. For a 4kW household, the average costs will be $8,792 after tax credits, but this can be much greater for a 25 kW household, being $54,950 after tax credits.
This also varies depending on location. According to EnergySage, California has an average cost of $11,928-$15,204, Florida comes in at $9,198-$11,970 and New York has an averages 6 kW cost of $12,264-$16,044.
Are you thinking of installing solar panels?
Whether you’re sold on the idea of having solar panels installed, or need a bit more information, get in touch to find out how much you can really save by installing solar panels. UMA Solar are a leading solar thermal and solar electric distributor and offer a full range of solar solutions for residential homes and large-scale commercial projects. For more than 40 years we have been leading the way, and would be delighted to discuss your solar energy needs today. Get in touch to find out more.