How Much Money Do Solar Panels Reduce an Electric Bill?

You want to know how much money solar panels reduce an electric bill for your average homeowner, before investing in solar panel set up. Solar panel installation calls for funding up front but pays off in regulations and tax breaks and long-term power savings. Here are the factors you should consider before picking solar panel installation.

Area of Your Home

The sun visibility found in your home home solar power system malaysia condition will affect your financial savings. It's not only where in america you're located that matters, but the directional orientation of your home. Solar panel systems are able to produce energy from both scattered and direct sunlight, but if your home's roof is not in contact with the sun for extended periods of time throughout the day, the complete savings might not mount up as much as you'd like. Homeowners in the southwestern United States see the best return on investment due to the energy of the sun's rays in this region, typically.

The dimensions of Your Home

Will provide a lot larger space for solar panel installation, even though a larger home will need more electricity for daily use. Greater systems producing more solar energy tend to help save homeowners more money per kilowatt hour of electricity. While the advance costs will be beyond a small solar panel program, future savings will multiply.

Long-Term Expenditure

It's the long-term picture that paints the most precise savings prediction, although many potential solar panel program owners want to know exactly how much cash they will save from month to month. With typical electricity rates at 12 cents for each kilowatt hour, as well as the typical American family using 908 kilowatt hours per month, in 20 years you can expect to spend over $26,000 on electricity.

Person scenarios may vary, though with a federal tax perks offering a 30 percent tax reduction through 2016, individual state advantages, and local subsidies and stipends, on average it no longer costs homeowners this much to install a system. In fact, solar panel systems themselves have dropped 80 percent in price since 2008. And when the International Energy Agency will have anything to say about it, solar will become the largest way to obtain electricity by the year 2050.

Conversely, energy companies continue to elevate rates each year. In 2014, residential electrical power rates increased by 3.1 percent, with an additional 1 percent rise anticipated in 2015. Across the country, solar savings are adding up, and increasing year by year. The average monthly savings amount to $84 and 20-year financial savings add up to over $20,000. The greater the utility rate in each state, the sooner the solar panel system will pay for itself and then some.

Minimum Expense Risk

A solar power system is a wise expenditure because it normally will last longer than 20 years. Most systems come with a 25-year warrantee. Better yet, the system alone adds value on the property. The Nationwide Renewable Energy Laboratory quotes that for every money saved on an electric bill, $20 in value is added to the home. Even if the property owner does not plan to stay at the property in excess of 20 years and see the utmost investment payoff, they will likely recoup a large percentage of the system's cost in case the home is sold.

Consult with a local solar power panel installation company for a pricing estimate. Obtain a personalized quote on how much money solar panels could save on an electric costs based on the sun location and exposure of your home.