Solar energy is known for its environmental friendliness, but investing in a solar panel system can also save you significant money, too. Solar panels can help reduce and potentially eliminate your electricity bills, making a solar energy system a worthwhile investment. Benefits such as tax credits and electric grid net metering can help you save even more money, helping you increase your return on investment.
Key Benefits of Solar Panels
Solar panels convert sunlight into electricity, reducing the amount of electricity you need to use from your utility company. Solar panels are incredibly advantageous for home and business owners. With solar panels, you can enjoy the following benefits:
- Reduced utility bills
- Reduced carbon footprint and environmental impact
- Peace of mind that you can continue using electricity during power outages
- Long-lasting system
Solar panels are long-lasting, dependable systems that provide power without relying on the electric grid system. When you install solar panels, you can rest assured your home or business will have adequate power during severe weather and power outages.
In addition to the monthly cost savings, you can enjoy making a positive impact on the environment and reducing your carbon footprint. Solar panels can last 25 to 30 years, allowing you to get significant use out of your initial investment.
How You Can Save Money With Solar Panels
You can potentially save thousands of dollars with quality solar panels. The more energy your solar panels generate, the less energy you need to purchase. Using this renewable energy source allows you to benefit the planet while saving significant money on your electricity bill.
Net Metering
Solar panels can help you save additional money on utility bills if your local power company implements net metering. Net metering pulls unused energy from solar energy systems and reimburses properties for unused power.
A home or business with a solar energy system uses available energy from its solar panels and then pulls the remainder of its electricity from the power grid if the solar energy system runs out of energy. A solar energy system also sends excess power to the grid if a home or business uses less energy than its solar panels absorb.
If your utility company uses net metering, it will pay you for the extra, unused power your system sends to the grid. Most companies pay this in the form of a credit. You can use this credit to cover electricity costs when your panels produce less energy and you need to pull power from the grid.
Solar Batteries
Some companies implement Time of Use rates, increasing power costs during peak hours and lowering costs during low-demand hours. If your local power company implements Time of Use rates, you may be able to save more money with a solar battery.
Solar batteries store unused energy. When you install a solar battery, your system saves the energy your house or business property does not use, so you can use it when needed later. Using stored energy prevents you from using electricity during peak hours, reducing your electric bill. Solar batteries also provide excellent backup power in the event of a power outage.
Can You Save More Money With or Without a Solar Battery?
In some situations, it is best to install solar panels without a backup battery. Whether or not you should install a battery depends on your utility company.
If your energy provider implements net metering and charges fixed rates, you can save more money without a backup battery. However, a backup battery is an excellent addition if you want to use as much renewable energy as possible or your utility company charges high rates during peak hours.
Can Solar Energy Eliminate Your Electricity Bill?
Solar energy can eliminate electricity bills in some cases, but it depends on your utility company and how many solar panels you have. Because net metering grants bill credit for unused solar power, installing several solar panels can potentially reduce your electric bill to zero dollars.
Some utility companies implement minimum bill charges between $15 and $30, requiring property owners to pay a small amount even if they use no electricity from the grid. If your utility company implements these charges, you will always have an electricity bill but can still reduce it significantly with a solar energy system.
Is the Initial Solar Panel Investment Worth the Savings?
A solar energy system is an excellent investment, and the money you can save on utility bills is worth this initial investment. After purchasing solar panels, you can expect them to provide power for decades. Your savings can rapidly increase over this time, providing you with a significant return on investment.
If a solar energy system’s upfront cost concerns you, consider the following financing options and benefits:
Loan
When you invest in a solar energy system with a loan, you can cover the system’s cost with monthly payments. You can purchase solar panels with no down payment, and the monthly payments are typically lower than utility bills.
Checking your annual percentage rate can help you determine how much loan capital and interest you will need to pay annually during your payback period.
Cash Payment
Paying for your solar energy system with an upfront cash payment allows you to enjoy energy savings without paying a monthly loan payment. The money you save on your monthly utility bills will gradually make up for the upfront investment, leaving more money in your bank account that you would have otherwise spent on electricity.
Tax Credit
A tax credit or investment incentive can help you reduce your initial solar panel investment. Installing a solar energy system allows homeowners to receive a 30% federal tax credit, increasing savings.
Save Money on Your Utility Bills With Solar Panel Installation
Solar panels can save you a significant amount on your monthly energy bills. You can purchase a solar energy system with an upfront cash payment or a solar panel loan and enjoy years of savings. A federal tax credit can decrease your initial investment, increasing your savings even further.
A solar energy system provides your home with enough power to reduce or eliminate your dependence on the utility grid significantly. Relying on this renewable energy source can save you thousands on electricity, allowing you to allocate your funds toward other important priorities in your life.
8MSolar offers high-quality solar panels, and our professional in-house engineering staff installs systems with expertise. With over 20 years of experience, we install solar panels to provide homes with dependable power. Contact 8MSolar to learn more about our solar panel systems and request a quote.
