How Going Solar Will Affect Your Utility Bill

So, you’re considering harnessing the power of the sun by installing solar panels. Great! But, you may be wondering what kind of savings you can expect to see on your monthly utility bill. That’s a good question and one that deserves a clear answer.

One of the major reasons for making the move to a solar power system is saving on your monthly electricity bills. And, you will. But, whether or not you can leave the grid completely and free yourself from any electricity costs depends on how much energy you use compared with how much energy your solar system produces.

If you have sufficient panels that are properly installed and facing the optimal direction, you may be able to produce more energy than you’re using at any given moment. Excess electricity is then sent to the grid, and you’ll be provided with a credit for that energy. However, if you’re using more electricity than what your system is able to produce, such as during the evening hours, you will be purchasing electricity from the utility company. Similar to a credit card, your monthly statement from the utility company will have both credits and charges.

The Daily Cycle of Energy Consumption

When you evaluate your energy usage, you may want to consider how you use it throughout the day. Most homeowners use little electricity in the middle of the night, other than for lights and appliances that remain plugged in. In the morning hours, energy usage increases as the sun begins to shine. Throughout the day, your solar system will typically produce more energy than your home needs, and you’ll likely be generating credit during this time. Once the sun sets, you’ll need to once again rely on power from the utility grid.

On sunny days, which are quite common here in the Valley of the Sun, credits you earn during daylight hours can offset usage at night. Also, keep in mind that solar production varies by season. Obviously solar production is at its peak in the summer months, just when you’re likely using the most amount of electricity to cool your home.

Roof size, financial payback and other factors can also play a part in what you can expect to pay each month. Want to learn more? Contact the experts at Cool Blew Solar. We can evaluate your home’s unique features and your lifestyle to determine if solar is an option that makes both dollars and sense.

FAQ's

Is Solar Energy Expensive?

The size of your panel installation and the needs of your home will affect your costs. The average net cost of a 5.69kW system is $13,838 cash after 30% rebate (according to solar-estimate.org). An average-sized system can cost up to $35,000. Larger installations will require more hardware, planning and construction time. This can further increase costs. While solar panels are expensive, they have many distinct benefits. Cool Blew Electric & Solar’s experts can assess your situation and goals and recommend a cost-effective system to meet your needs.

How Much Can I Save By Installing Solar Panels?

An average-sized system (5 kilowatts) can reduce up to 50% of your monthly electricity bill. A 5.69kW system would offset 100% of your energy usage if your typical monthly bill is $138. Over a period of 20 years, these savings can add up to $30,000, based on your location and energy usage.

How Long Would It Take to Recoup My Solar Investment by Solar Energy Savings?

With a 5.69kW Solar system you would recoup your savings in 7 years and 2 months but with continuous Utility increases every year your Return and Investment will be much sooner.

What is a Solar Lease Program?

The Solar Lease Program has been one the most popular option that homeowners have chosen over the years. Solar Lease programs gives homeowners the opportunity to take advantage and put Solar on their homes and a guaranteed savings from their Utility for little to no money out of pocket. Most Leases are 20 year power guarantee from the solar provider and includes fixed monthly payments, no repair cost, fully insured and warrantied for the life of the system.

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