Everyone in Fircrest knows about the benefits of solar energy for the environment. It reduces carbon emissions, preserves nonrenewable natural resources, reduces dependence on oil, etc. That is all well and good, but in tight economic times the question always comes down to one thing: how much will you save. People want to know how much going solar can really save them on costs, and if you are reading this, then you are probably wondering the same thing, and with good reason.
Savings Are Variable
Somewhat disappointingly, that’s the answer. There a number of factors to consider in the cost of using solar energy and the subsequent savings, and after considering all of them you may decide solar isn’t right for you. There is no one right answer, but below you can see some guidelines which ought to give you a better idea:
- Energy costs for an average American household are estimated at about $195 per month, and rising at a rate of about 3.75% each year.
- The cost of installing a solar panel system is between $8 and $12 per watt (or $8,000 to $12,000 per kilowatt).
- If your family uses 7 kilowatts of electricity per month, a solar panel system to offset 100% of your energy use will cost about $63,000. You can opt to get a less robust system to offset, say, 50% of current usage, however, for a lower cost. This is not set in stone either. Costs fluctuate depending on where you live and current component prices.
- Despite the high initial cost, many solar systems are under warranty for 25 years, meaning you can expect them to last at least that long.
- Depending on the utility price structure in your area, using solar for 50% of your household energy consumption may reduce costs by as much as 60%. Over 25 years, assuming the steady rate increase of 3.75%, your savings can be upwards of $60,000.
Keep in mind that these are only rough estimates. Research utility costs in your area and get estimates before installing. Solar energy calculator utilities are available online. You may find that there is a definite savings with solar, or that you can use a smaller system to offset a portion of your energy use. Or, you may even find that solar energy is not the right option for you. The important thing is to do your homework and choose the home energy solution that is best for you and your family.