The use of solar panels in U.S. homes is expected to triple by 2030, but how much adoption comes down to cost savings?
Solar panel installation involves significant upfront costs. Installation in the U.S. ranges anywhere from $3,500 to $35,000 and most homeowners expect a return on that investment.
Environmental benefits always play a part. However, you need initial capital, and anyone could be forgiven for wondering ‘will solar panels save me money?’
In this article, we’ll discuss whether the initial cost is worth it and help determine whether your household will save money over time.
Deciding whether you’ll save money with solar panels starts with understanding your current energy expenditure. You’ll also need to consider how many solar panels you’ll need to meet your domestic power needs.
Any solar savings really come into their own when you can offset initial costs while reducing future expenditure. The initial investment can be significant, especially in homes that use a lot of power.
It’s also worth considering that solar panels don’t last forever. When weighing up the costs, it’s worth keeping in mind that a typical home solar panel lasts for between 25 and 30 years at peak performance.
Will Solar Panels Save Me Money in the Long Term?
There are plenty of solar energy benefits outside finances, but they must make sense. Can they reduce bills by enough over their lifetime based on your circumstances?
No solar energy guide would be complete without reinforcing that they’re unlikely to replace the need for traditional electricity supplies.
Solar panels alone are rarely enough for any home to go completely off the grid. They’ll often cover around 50% of domestic electricity needs.
Understanding cost savings comes down to:
- Establishing installation costs
- Working out half of the current on-grid electricity costs
- Determining whether solar panels can be profitable over 25 years
There are other factors to consider too. Will you be in the same home in 25 years to continue to reap the rewards? Could you cut installation costs by having your panels added to your property in winter, when demand is lower?
For the most part, and using the figures outlined throughout, most households can expect to save money with solar panel installation.
The average US electricity bill is approximately $1,400 annually. Meanwhile, the average solar panel installation costs around $15,000. Assuming you stay in the same home for the life of your panels, you’ll save around $17,500 on bills.
In that case, savings work out to $100 per year after deducting your initial investment. However, the figures can fluctuate, as can energy prices, making solar panels an ideal way to hedge against larger bills.
Discover More Great Money-Saving Tips on the Blog
So, will solar panels save me money? Almost certainly, if you’re patient. However, every home is different, and it’s worth crunching the numbers – especially in states with access to discounts and subsidies. It’s worth understanding bills and getting some quotes, as you might be pleasantly surprised!
Of course, cutting energy costs isn’t the only way to reduce household expenditure, and we’ve got plenty of great money-saving articles across the blog, so be sure to take a closer look!