Residential solar installations are now more affordable than ever. The current cost of energy in the U.S. from the traditional grid is 12.75 cents per kilowatt hour and is constantly rising. In California, it is nearly 18 cents per kWh, while solar is only 7 cents per kWh. In the short term, there are loan or lease payments related to setting up a solar system, but once paid, the savings become large. Note that there are also government tax credits and rebates available. Additionally, excess energy from panels can be sold back to the utility company. Ultimately, there are many factors involved in determining whether solar will save you money. A solar savings calculator is available to help figure it out.
- Many homeowners are now turning to solar power not only as a clean energy source, but for relief from their utility’s ever increasing rates.
- Generally, the rule of thumb is if your electricity costs are higher than your solar costs, you’re going to see savings by switching to solar.
- It’s not unusual for these rates to fluctuate suddenly leaving customers subject to insanely high electricity prices. Just recently electricity rates increased 13% in northern California one month.
“When you install solar panels on your roof, you are essentially turning your home into its own mini power plant.”