Do you want to help fight global warming? Are you tired of relying on the power company for your electricity needs? If so, consider adding solar panels to your home.
Solar panel installation is easier and more affordable than ever before. For many homeowners, it’s quickly becoming a no-brainer to go solar. This is especially true if you live in a sunny climate.
Are you interested in learning what kind of return on investment (ROI) you can expect if you install solar panels on your home? If so, you’re going to want to find out what the average monthly electric bill is for homeowners who have made the switch.
Continue reading to learn everything you need to know about the average monthly electric bill with solar panels.
Factors That Influence the Amount of Savings
When considering the amount of savings that result from having home solar panels installed, there are several factors that influence the average monthly electric bill. Here are some of them:
Depending on Location
The amount of savings individuals can accumulate depends on multiple factors, especially location. Where people live and how much income is available to them are two of the biggest factors that impact how much they can save.
Those living in high-cost areas will usually have more difficulty accumulating savings. This compares to those living in more rural locations. The areas include the following:
- New York City
- San Francisco
- Los Angeles
Also, the following can all have an impact on how much an individual can save:
- availability of employment and wages
- cost of housing
- access to amenities
- transportation costs
- health care costs
- taxes
- cost of goods
Differences in the value of the currency between two countries or regions can also affect the savings ability of individuals. The location an individual lives in therefore plays a big role in their financial outlook. It could greatly influence the amount of resources they can save.
Depending on the System size
The amount of savings attributed to the system size depends on a variety of factors. Depending on the size of the system, the amount of electricity that must be generated may differ significantly.
If a house has two refrigerators and a pool pump, a larger system is needed than for houses with only one refrigerator and no pool pumps. The price of the components, such as the panels and inverters, and the installation fees of the system can influence the savings.
Larger systems generally have a higher up-front cost, but they also create a greater potential for savings. On the other hand, a smaller system requires lower up-front costs but may not provide the same level of savings.
Depending on Energy Consumption
This is one of the most important factors that influence the amount of savings depending on energy consumption. The higher the rate of energy consumption, the more money you will have to spend each month on energy costs.
Additionally, the cost of energy in the area that you live in can have a big impact on how much you need in saving energy costs. For instance, if energy costs in your area are higher than the national average, then you will need to save a greater amount of money each month. This is in order to stay ahead of energy costs.
Trying to implement energy-saving measures will also have an impact on your overall energy consumption. This, in turn, will affect how much money you need to set aside for energy costs.
Depending on Electricity Rates
The cost and amount of electricity savings are dependent on the rate of electricity the individual or household is paying. The amount of electricity used by an individual or household will also affect total electricity expenses. This is compared to those that use more electricity, generally paying higher rates.
Also, the type of rate plan chosen will affect this figure. For instance, certain times of day may include peak-rate hours, while others may include plans such as a time-of-use rate or flat rate.
The regional provider chosen also influences the amount of savings available. This also includes the individual’s current electricity plan. Certain conserving measures both within and outside of the home can help to reduce electricity expenses. This includes such as opting for LED lights and energy-efficient appliances. This further increases savings.
Depending on Government Incentives
The moment a government starts to offer incentives, people start to think of how they can make the best use of these incentives to increase their savings. Depending on the type of incentives, the amount of savings for people can vary.
Generally, the more government incentives, the more people are willing to increase their savings amount. Factors that influence the amount of savings depending on government incentives include the following:
- value of the incentives
- time period for which these incentives are available
- rate at which these incentives are offered
- tax deduction arrangements
Government incentives can also confuse people if it has a complex setup, and thus, the clarity and understanding of the incentives are also factors that influence the savings amount. In this way, depending on government incentives can help people for increasing their savings if these incentives are structured efficiently and are well understood.
Depending on the Direction of the Panels
When considering the amount of savings that can be made, depending on the direction of panels, there are many important factors to take into account. In the northern hemisphere, south-facing panels typically receive the most direct sunlight, allowing for the most potential energy collection and, therefore, the most savings.
Moreover, the geography of the area, such as surrounding hills or mountains, can affect the amount of sunlight received, and even small obstructions from buildings or trees can cause a loss of efficiency.
Additionally, the tilt of the panels, or the angle at which they point, can influence the amount of sunlight absorbed and the amount of savings earned.
Depending on Panel Quality
The quality of the panel used for a savings system can have a major influence on the final amount of savings achieved. Factors such as the size and material of the panel, the voltage supply available, and the efficiency of the construction of the panel all play a role in determining the end savings.
A larger or more efficient panel will generally lead to greater savings due to its ability to absorb more power, while a poorer quality panel will require more energy to power it and may lead to lower or no savings.
Furthermore, materials such as metal and plastics will have different levels of efficiency, so these must be considered when selecting a panel. Additionally, the available voltage supply will have direct implications on the amount of savings that can be achieved, as higher voltage systems allow for greater power absorption and, therefore, more savings.
In conclusion, the quality of the panel used will have a direct correlation with the level of savings achievable and should be given due consideration.
How Solar Panels Lower Energy Bills
The average monthly electric bill with solar panels can depend on several factors, such as size and amount of energy used. Typically the more energy used, the greater the savings.
The average person can save anywhere from 10-50% on their electric bill with the installation of solar panels. Solar panels provide a renewable energy source that reduces our dependence on carbon-based energy sources such as oil and gas.
By harnessing the power of the sun, solar panels allow us to use up to 95% of our own energy, reducing our dependence on nonrenewable energy sources and lowering our monthly electric bills.
In addition, government incentives such as the Federal Investment Tax Credit can help offset the cost of installation of solar panels, making it even more cost-effective to obtain and use solar energy, thus lowering the average monthly electric bill. Click here for info about solar panel installation to learn more.
Calculating the Average Monthly Savings with Solar Panels
Calculating the average monthly savings with solar panels is a fairly straightforward process. First, you need to gather information about the size of the system in terms of watts or kilowatts, the average monthly electricity bill of the property before solar panels were installed, and the location of the property.
With this information, one can then calculate the average monthly savings the solar panel will bring. To do this, you need to compare the ‘before installation’ bill with the ‘after installation’ bill.
Here you can compare the average consumption of electricity and the average cost, thus calculating the average monthly savings. Another factor to consider is the cost of installation and maintenance of the solar panels, as well as the energy production potential. All of these variables are integral when it comes to accurately calculating the average monthly savings from solar panels.
Explore the Average Monthly Electric Bill With Solar Panels
The average monthly electric bill with solar panels can vary greatly depending on the location and energy output of the system. However, the cost savings of having solar power can amount to hundreds of dollars a month in some cases!
Now is the time to make the switch and reap the benefits for yourself. Contact a local solar energy specialist today to learn more.
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