How Much Does Solar Panels Save You Money

Solar panels cost money upfront but will save you money in the long term.

How much does solar panels save you money.

This is a countrywide average of course. On average solar panels will save you over 1 100 per year on your electricity bills. 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. On average installation and the system together can run between 15 000 and 25 000.

Most solar panels are sold for about 0 70 per watt if bought in bulk. But the true cost of solar panels and whether they ll help you save money depends on a few key factors. The average home can save between 10 000 and 30 000 over the lifetime of your solar panel system. If you live in wick or kirkwall your annual savings might be closer to 600.

These savings are very real and their relative strength depends on the availability of local city and state incentives. 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. The average cost of solar panels and their upfront cost can be offset by the federal tax credit which currently sits at 26 percent. If your roof is deeply shaded by trees mountains or buildings solar panels won t work well.

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. 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. Some states see even higher averages.

It may seem obvious but access to sunlight is important. 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. A more universal way of looking at cost is to determine the cost per watt. A standard 4 kw solar installation offers savings of roughly 653 a year on average which means you could potentially offset a 55 month electricity bill to 0.

For an average sized 6kw solar system installed anywhere in the country solar panels will save about 1 500 annually. After 2020 the tax credit will step down to 22 percent.