Solar panels are becoming increasingly common here in the United States, and you’ve likely started to see them on more and more homes in your neighborhood. But as you drive by yet another house with newly installed solar panels, you may find yourself wondering whether going solar really saves you money.
The answer to that question is yes, absolutely—residential solar panels could offset your electricity costs by as much as 100%. We also have some energy saving tips to lower your energy consumption before solar even enters the picture!
How Does Solar Reduce Your Power Bills?
One of the main benefits of solar energy is reducing or even eliminating your electricity bills. This is possible because solar panels generate electricity using free energy from the sun. Once you have your system installed, you’ll be able to produce most or all of the electricity your family needs yourself, reducing the amount you need to buy from your utility company.
When you look at these savings in terms of years rather than months, they really add up. Let’s say you spend about $100 on electricity every month. That adds up to $1,200 a year, and in just 10 years, you’ll have handed $12,000 over to your utility company, even before factoring in any energy price inflation! Your average monthly electric bill with solar panels will be drastically reduced, helping you save significant amounts of money over that time.
But lowering your utility bills with solar isn’t the only way to save. You’ll also be able to:
Avoid High Electricity Costs
Electricity costs have been rising steadily in recent years, and they will likely continue in that direction. By installing solar panels on your home now, you can protect yourself against rising electricity rates and surge pricing, helping you save even more money in the long run. With a solar battery storage system, you can also avoid peak demand charges, or time-of-use charing rates.
Qualify for the Federal Solar Tax Credit
The solar tax credit, formally known as the Investment Tax Credit (ITC), is one of the most lucrative federal incentives for residential solar installation. The ITC allows homeowners to qualify for a federal tax credit worth 26% of their total solar panel installation costs (in 2021 and 2022), making the upfront costs of solar installation much more manageable. The ITC is, however, on a step-down schedule and will drop to 22% in 2023 and be eliminated for homeowners in 2024, so act fast to take advantage of this incentive before it’s gone.
Earn Money With Net Metering
Net metering is a solar incentive program that allows homeowners to send any excess electricity that their solar panels produce to the grid in exchange for a credit. That credit can then be used to pay for any electricity you may need to pull from the grid when your solar panels are not producing energy, such as at night or on a cloudy day. Thanks to net metering, many solar energy users end up with negative electricity bills. However, not every utility company offers net metering.
Get a Free Evaluation from a Reputable Solar Company Near You
Are you sick of wondering why your electric bill is so high every month, especially in the summer? It’s time to call CAM Solar and schedule a free solar evaluation. During your free evaluation, we’ll estimate how much money you could save with solar panels so you can decide whether solar panels are worth it for you. We’re a licensed solar energy company serving homeowners in Texas and Colorado, and we’re here to help you on your way to energy independence.