Lowering electricity bills is one of the biggest reasons homeowners switch to solar. But how much can you actually save? The answer depends on several factors, including your energy consumption, roof suitability, financing options, and available incentives. Let’s break it down, using insights from the U.S. Department of Energy (DOE) to help you understand your potential savings.
Your home’s ability to generate solar power depends on your roof’s size, shape, slope, and shading. South-facing roofs with a tilt of 15 to 40 degrees generally perform best. If your roof isn’t ideal, community solar programs can be a great alternative.
Your utility bill shows your monthly electricity usage. The more energy you consume, the greater the potential savings. Some utilities also offer net metering, which credits you for excess solar power sent back to the grid, further reducing costs.
Solar panels can be financed in several ways:
Each option affects how quickly you’ll break even on your investment.
The Federal Solar Tax Credit allows homeowners to deduct 30% of their solar installation costs from their federal taxes. Many states and utilities also offer rebates and incentives. You can check DSIRE (Database of State Incentives for Renewables & Efficiency) for local programs.
Your solar payback period is how long it takes for your system to pay for itself. Here’s a simple formula:
For example:
The faster electricity prices rise, the greater your long-term savings. In many cases, solar provides a better return than traditional investments.
If you rent or have a roof that isn’t solar-friendly, community solar allows you to benefit from solar savings without installing panels. These programs let you subscribe to a shared solar farm, and you’ll receive credits on your electricity bill.
While exact savings vary, solar energy offers a reliable way to cut electricity costs and protect against rising utility rates. With tax incentives, net metering, and financing options, switching to solar has never been more accessible.
Want to find out how much you could save? Call SunSent Solar today for a free consultation or fill out the form at sunsent.com.
Want to know how much you could save in St. Louis, Missouri? Read our blog post!
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