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.
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.
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