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    Solar Energy > Energy Saving > Solar Energy Savings

    Solar Energy Savings

    Posted September 30, 2007

    The average household today pays nearly $170 each month in home energy costs. Some estimates have energy costs pegged
    at almost $200 per month, a cost of $2,400 for the entire year.

    It’s important to look at the long term picture when evaluating the amount of savings the addition of a solar panel
    system to one’s home will bring. With energy expenses rising each year of due to rising utility rates it’s easy to see
    how fast the money saved builds up.

    Annual Energy Costs

    Solar PV systems are warrantied for 25 years, and since 2001
    energy costs in the United States have risen an average of 3.75% annually. At a conservative estimate let’s say the
    rate of increase for energy costs holds steady, an average household today paying $2,400 per year in energy costs will
    pay close to $6,000 at the end of the systems term. The total cost will amount to approximately $100,000, yikes!

    This example assumes a 100% coverage of cost, however if 100% energy cost coverage is not within your budget, there
    are still massive savings to be had.

    Some utility companies use a tiered pricing structure where the consumer is charged more incrementally per kWh, the more
    energy that’s consumed. If you use enough electricity to pay the higher tiered rates, then in essence you shave off the
    most expensive part of your energy bill by installing a partial demand solar system.

    Case in point, for Southern California, using our Solar Calculator,
    the approximate cost for a solar panel system, before incentives and rebates, to offset 100% energy cost ($170 / month)
    the system required would be a 7.8 kW system. By offsetting 50% of your energy consumption, the system required would
    be half that size, or a 3.9 kW solar energy system.

    3.9 kW x $9,000 (average price per 1kW) = $35,100 * before incentives

    Offsetting 50% of your energy demand might net 60% or more off your monthly bill due to the tiered pricing structure.
    Over the system’s lifetime that’s a net savings of at least $60,000. That’s cash in your pocket that is not going to
    your utility company that can be used elsewhere such as college tuition, retirement, or that Hawaii vacation!

    A customized quote tailored to your specific project needs will give you the most accurate information on your expected
    savings. Use our free solar power directory to
    locate featured local solar installers and schedule a free on-site quote.

    * Refer to our Solar Power Rebates section for local incentives.

    Did you know?

    The average homeowner saves over $1000 a year on electricity by installing solar panels on their roof. That’s including the cost of solar panels. The most
    common way to go solar today is by leasing, which essentially means instead of paying the utility you pay less to produce your own energy.

    Want to find out more? We can connect you with top rated solar providers in your area who will provide you with a free consultation, usually over the phone or online.
    Find out if solar works for you