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How Much Can You Save by Switching to Solar?

Alexandra Goldthwaite - Friday, November 4, 2022
Property Management Blog

A recent study found that over 1.4 million US solar panels are in use. Solar panels are known for being environmentally friendly, taxable, and have low maintenance costs. 

Plus, they have the advantage of saving money, so it’s no surprise they are a popular energy choice. However, how much do solar panels truly save? Is it $5,000, $10,000, or more? 

Don’t worry, with this guide; you can find out! We’ve investigated the exact solar savings, so you don’t have to. Without further ado, here’s how much you can save by switching to solar panels:

Do Solar Panels Save You Money? 

The simple answer is yes; solar panels do save you money. That said, how much money you save depends on several components. For example, the amount of daily sunlight and the size and angle of your roof will play an important role in cutting down costs. 

However, your local electricity rates will be the largest determining factor in how much you save. After all, the more you pay for electricity, the more you can compensate for it with solar panels.

How Much Money Will You Save on Your Energy Bills?  

Before we talk about your savings, it’s crucial to understand how much you’re spending on electricity. You can find out by looking at your electricity bill and multiplying your average electricity use by the national electricity rate. Most Americans spend about $125 a month, totaling a whopping $1,500 per year. 

That means if you were to switch to solar, you could offset the costs of your normal electricity bill by more than 80% equaling a $1,200 savings per year and twenty-year savings of $24,000. 

Now, if you want to offset your costs completely, you will need to purchase a larger solar panel configuration, which costs anywhere from $15,000 to $20,000 upfront.

If we look at the long-term savings of having a large solar panel, you can save over $30,000 in a twenty-year period. So purchasing a more costly configuration will help save you more in the long run. 

Will You Continue to Have Energy Bills With Solar Panels? 

You will still receive monthly energy bills, even after installing solar panels. Now, depending on your location, electricity rates, and how many solar panels you install, the bill may not ask you for payment; however, it will show you a breakdown of your usage. That way, you understand how much electricity your pulling in and how much it’s saving you on a monthly and yearly basis. 

Are You Switching To Solar? You Should Be 

Solar panels are not only good for the environment but good for your wallet too. By installing solar panels, you can save more than 80% of your yearly energy bill. That’s about $1,200, and if you offset your yearly bill completely, you can save more than $30,000 in a twenty-year period. 

So, what do you say? Are you switching to solar? Contact us today for more information about switching your rental property to solar energy.