How Much Money Do You Save With Solar Panels

After 2020 the tax credit will step down to 22 percent.

How much money do you save with solar panels.

The electricity rates in your area compensation to you from your energy provider and how much energy you use all figure into the calculation. It may seem obvious but access to sunlight is important. The credit could save the average homeowner 5 000 or more depending on the size of the system according to energysage a solar marketplace with a calculator to help estimate savings. If your roof is deeply shaded by trees mountains or buildings solar panels won t work well.

A 6 000 watt solar system should produce 13 000 kilowatt hours per year which would save you the equivalent of 150 to 200 per month in electricity in most areas says todd verk vice president. Going solar saves versus traditional energy costs per the us energy administration the current average cost of electricity from the traditional grid is 12 75 cents per kilowatt hour kwh. The estimate also considers the average sunshine available in the country and the average electricity price of 13 34 cents per kilowatt hour reported by the energy information administration. On average solar panels will save you over 1 100 per year on your electricity bills.

Solar panels cost money upfront but will save you money in the long term. As you can see answering the question of how much do you save with solar panels depends on several factors. The average cost of solar panels and their upfront cost can be offset by the federal tax credit which currently sits at 26 percent. So the sooner you take advantage of the full credit the better.

This is assuming a system size of 6 kilowatts which is common in the us. The average home can save between 10 000 and 30 000 over the lifetime of your solar panel system.