As more people are switching to working from home, there has been a rise in interest in saving money on electricity bills.
Constant computer and AC use can drive it sky-high, so anything to help lower it is welcomed. This is where solar energy comes into play.
The increase in solar panels is with good reason, as the money you can save can greatly outweigh the installation costs.
But how much money do solar panels save? let us break it down for you.
Table of Contents
How Much Money Does the Average American Family Spend on Electric?
Electric bills are determined by the kilowatt-hours (kWh) that a household uses in a given bill cycle.
For many Americans, the average cost per kilowatt is around $0.1328. This brings the annual cost to just over $1,450 in electricity costs.
This does depend on states though. States like Florida and Arizona are constantly exposed to a great number of days of straight sunlight will see an increase in their electric bills from running the AC.
States that experience rainy days often and are prone to mild cold days like Oregon and Washington State will notice a decrease in their electric bill.
What Factors Play Into Cost Saving?
This goes vice versa when it comes to the savings from solar panels. Those living in these “hot spots” will be able to utilize their solar panels to create energy more effectively.
By increasing the amount of energy they are producing, this can offset the cost to run the AC constantly.
There is also the factor of inflation rates. Electricity bills typically increase by around 2.2% year-over-year. But by installing solar panels, you can maintain the same electric bill for as long as they are installed.
The longer the solar panels are installed, the more solar panel savings you will incur. This can lead to most American families saving around $25,297 over the course of 20 years.
For those looking to get in on those savings, check for solar providers near me.
Do You Still Get a Bill From the Electric Company?
This is where things get slightly confusing. You will still get an electric bill from your utility company every month because they are the ones that are able to read meters and charge as needed.
Solar panels save money for you because instead of using the utility companies’ energy, you were able to produce and utilize your own.
This means there will be some months where you receive the bill and there is nothing for you to pay. This stems from the solar panels producing enough energy to fully cover your bill.
How Much Money Do Solar Panels Save? Depends on the State and Home
How much money do solar panels save? It really depends on the state and how much kWh they are charging.
Places like California and Massachusetts will notice incredible savings because of their high kWh.
For those looking to learn more about improving the home, be sure to check out our other articles. If you know someone with a high electric bill every month, be sure to share this article with them.
