Calculate How Much You Can Save With Home Solar

Apart from reducing carbon footprint, installing a residential solar panel can also help you save money on utility bills. This article enables you to get an estimate on how much savings you can make by going solar. You can also use an off-grid solar calculator to get more accurate figures depending on your location and usage.

How Much Can You Save With Solar?

The exact amount you can save by installing a solar system depends on several factors. For instance, the size of solar panels you install, electricity rates in your location, and your household usage affect how much money you will save on your utility expenses.

Here is an estimate.

If a 1kW solar system produces 4kWh units daily, then a 6kW system will give you about 24 kWh units per day, which equals 720kWh monthly. Suppose the electricity tariff in your region goes for $0.0739; you’ll already have saved approximately $53.20 monthly.

These figures can increase or decrease depending on the number of units your solar generates monthly and the tariff rate in your location. You should also consider getting net metering to earn more if your supply is higher than your average consumption.

Incentives like federal solar tax credit and other government rebates can also help you save more and reduce installation costs.

Average Savings on Home

An average household in the US consumes up to 10 694 kWh yearly. That’s about 891kWh every month. With the average electricity rate around the state, about $0.13 per kWh, the household spends around $115.85 monthly on electricity bills. That equals approximately $1390 yearly.

Suppose you have a 6kW solar system producing around 8640kWh yearly; you’ll save up to $1122.98, depending on your state.

Is Solar Worth It Where You Live?

Whether going solar will benefit you depends majorly on the lifetime estimate of the system and installation costs. Before you make the decision, you may want to check if your state offers subsidies on solar installations and the possible break-even period. 

For example, you are installing a 6kW solar costs around $2.49 per watt in the state. If you’re footing all the installation costs, this comes to a total of $15000. However, the federal tax may slash out up to $4000 from the cost and leave you to raise only $11000.

Are Savings Estimates Reliable?

Solar savings estimates give you a picture of how much you can keep from your monthly utility expenses after installing the system. However, a few factors may affect the accuracy of the figures. First, it’s not easy to estimate the number of units your system may be able to produce in the long term, say 10 to 25 years after installation.

Similarly, studies show the price of electricity in the US has been rising at 3% yearly over the past decade. That means the tariff rates will keep changing, making it a challenge to predict utility rates in the future.

Going solar is one of the significant decisions you may have to make, and it’s easy to get confused. If you want more accurate calculations on how much you can save, an off-grid solar calculator can help you get more personalized figures.