How Much Money Can You Save by Installing Solar Panels on Your Home?

A Pew Research Study conducted in October 2022 confirmed that solar panels are on the rise in the United States.

You might have thought about installing solar panels for your home. But one thing that holds many Americans back, even as solar power becomes more popular, is the cost solar installers from Blue Raven Solar.

It’s true, solar panel installations are often expensive. Sometimes, the cost of solar panels can take several months to pay off. Nevertheless, you’ll save money in the long run.

Here’s what you must know:

You’ll Save On Energy Bills

Once you’ve got the solar panels installed you’ll have to pay new monthly bills. This is an alternative to your current energy bills. Once you make the switch you’ll realize how much cheaper it is.

In almost every scenario, your solar energy bills will be cheaper than traditional energy sources. In most cases, the savings are significant. Even when they aren’t, the small savings you make each month will make a huge difference in the long run.

One of the major advantages of solar panels is that the power remains on for several hours.

Even when you turn off solar power, you can still use many of your appliances. As a result, you can keep your solar power off for a few hours each day and save even more money.

You can learn more about installing solar power here.

Paying for Installing Solar Panels

Let’s return to the initial issue of installing solar panels. Costs can vary based on the company and your location.

However, in most cases, the average cost of a solar panel is $2.95 per watt. As a result, a solar panel that offers 10 kilowatts will cost $29,500 to purchase. You’ll have to pay extra for installation services and this can cost between $1K to $3K.

While this might seem like a lot, you’ll have the option of using a payment plan. This means that you can pay the entire cost of solar panels and installation over several months.

In some cases, you can receive a subsidy for solar panel installation. Many states and counties are pushing for further solar panel adoption.

If you install solar panels, you might qualify for cash back. This can help you receive money to cover the cost of your solar panels as well as installation costs.

Of course, you can also negotiate with the provider. As there’s a push for more solar power usage, many solar panel companies are willing to offer discounts to new homeowners.

Tax Benefits

One of the benefits of solar panels is the tax benefits. While this hasn’t been applied in all states, many states offer tax discounts for homeowners who use solar power.

As the push for solar grows, one can only expect more local governments to offer tax benefits.

As homeowners, we already have to contend with so many costs just to maintain our property.

The tax benefits will make a huge difference to us. This is likely to convince more American homeowners to finally make the switch to using solar power.

Your Location

You can save even more money on solar panels based on your location. For example, it’s likely that if you live in a rural area you can save your energy bills by at least $1K per year.

Rural areas often have a hard time getting reliable energy. As a result, rural homeowners often have to pay an arm and a leg to get high-quality energy.

Rural homes are the perfect location for solar panel installation. You’ll get the energy you want at a fraction of the cost. In fact, it’s often in the rural areas where we see the greatest attraction toward solar panels.

Of course, your current electricity bills are often dependent on your state. In some states, your yearly savings can be even higher than the previously quoted $1K per year.

While the savings might seem small at first, in 5 years you might have saved at least $10K if you live in a Northeastern state. If you live in a warmer Southern state, you can expect your savings to be upwards of $20K over a 5-year period.

If you’re not a homeowner yet, then you might want to consider where you’d like to buy a home. You might want to buy a home in an area where solar panels are already in use and offer great savings.

Keeps Up With Inflation

We weren’t going to avoid addressing the elephant in the room. In the introduction, we mentioned how solar panels have increased in popularity based on a 2022 study.

One of the many reasons for this upward trajectory is the inflationary crisis that we’ve experienced since 2020. Prices on energy and our cost of living have increased throughout the country.

Solar panels are a long-term solution for this. While you’ll have to spend a lot of money upfront, you’ll save even more in the future. One can only expect energy costs to increase.

As a result, you need to act now to save on your energy bills. If you think they’re expensive now, they’ll likely get more expensive in the future. 

How much will you save from solar panels? While there’s no set amount, one can expect it to be a welcome change from your current bill. If you have any neighbors with solar panels, ask them about their savings.

You can compare their bills with yours and in most cases, theirs will be much lower. As inflation continues to run rampant, you must become more self-reliant and solar panels are a great start.

Consider Installing Solar Panels

Now you can consider installing solar panels and work toward saving on your energy bills.

How much you’ll save depends on a variety of factors. In some cases, the savings will be minimal, while in others they’ll be significant.

You’ll pay a high upfront cost for solar panel installation. However, this will be offset by rebates, subsidies, and tax benefits. In the long run, you’ll pay less and you’ll keep up with inflation.

If you’ve still got some energy in you, there are more relevant articles on home ownership on our website.