As inflation worsens and energy costs rise, many homeowners are turning to solar panels as a way to rein in their expenses. If you’ve seen solar panels pop up on roofs in your neighborhood, you may be wondering whether you should install solar panels, too. But before you take the leap, there’s likely one big question on your mind—do solar panels really save you money?
The answer is a resounding yes! Residential solar panels are a good investment with long-term financial benefits. Not only will you save money on your utility bills, but you’ll also protect yourself against rising electricity rates and qualify for tax benefits.
Keep reading to learn more about the many financial benefits of solar energy.
How Much Money Do Solar Panels Save?
The amount of money you’ll save with solar panels depends on a number of factors, including how much electricity you use and how much electricity costs in your area. Generally speaking, the more you spend on electricity, the more you will save with solar panels. California has some of the highest electricity rates in the country, which makes it one of the best states for solar panel installation.
According to the U.S. Energy Industries Association, the average monthly electricity bill for residential customers in the United States was $137 a month in 2022. That adds up to $1,644. If you can offset just 70% of your electricity costs with solar panels, you would be saving $1,150 a year before accounting for the money you save by avoiding rate increases. Given California’s expensive electricity rates, you’re likely paying a lot more than the national average, which means you will save even more with solar panels.
At Six Rivers Solar, we install custom grid-tied and off-grid solar panel systems that are designed to offset as much of your electricity costs as possible. Whether you want to cover some of your electricity costs with solar panels or run your home on 100% solar energy, we can recommend the best solution.
How Do Solar Panels Save Money?
There are a few ways solar panels can save you money.
1. Electric Bill Savings
Electric bill savings are the most obvious way solar panel installation will save you money. Solar panels allow you to generate your own electricity so you can cover some, most, or all of your electricity needs yourself. Most solar owners still buy some electricity from their utility company, especially at night, but your monthly utility bills will be much lower with solar panels than without them.
These savings are amplified if you install solar panels with battery storage. A solar battery allows you to store the excess electricity your solar panels produce during the day so you can use it to power your home at night and on cloudy days, minimizing the amount of electricity you need to buy from the grid.
2. Avoid Rising Electricity Rates
Solar panels protect you against rising electricity costs by putting you in control of your own power generation. The cost to produce power with solar panels will never go up, unlike electricity rates that can increase significantly from year to year. With solar panels, you can lock-in a low electricity rate for the 25+ lifespan of your system.
3. Tax Incentives
Residential solar panel and battery installations qualify for the federal investment tax credit (ITC). The ITC, also known as the solar tax credit, is a federal tax credit that reduces your federal income tax liability by 30% of your solar installation costs. This solar incentive makes installing solar worth it for almost any homeowner.
Six Rivers Solar: The North Coast’s Leader in Solar Energy
Six Rivers Solar is a 100% locally owned and operated solar company on the North Coast. We’ve been in business since 1980 and have decades of experience helping homeowners and businesses take advantage of renewable energy. Our team designs custom solar power systems to maximize your savings using top-tier solar panels and products. It all starts with a free, no-pressure consultation—schedule yours today!