What to expect from solar power energy savings when you switch
December 9, 2021at7:00 AM
Many homeowners are hesitant to make the switch to solar energy because they feel like the upfront costs aren’t going to be offset by the savings that come over time. At Solar Switch, we’re firm believers that the switch is worth the investment because it will pay itself off before the warranty on the panels ends. You can read our short guide below for more information about solar power energy savings and how it’ll affect your electricity bill after your installation.
Lower electricity bill
The most obvious place where you’ll save money after a solar panel installation is with a lower electricity bill. Rather than drawing energy from the city’s utility grid, your home will be powered by the electricity created by your solar panels. One of the great things about living in California is the constant sunshine, which means that your panels will have extended hours of daylight and sun exposure to produce electricity for your home.
Tax credits and government incentives
The government has created tax credits and incentives to make it more affordable to get solar panels installed. No, tax credits and incentives won’t save your upfront installation costs, but you’ll receive much quicker returns the following year when you file your income tax return. For instance, homeowners who install a solar power system for their homes through 2022 will receive a 26% tax credit off the total cost of the installation, while those who install a system in 2023 will receive a 22% credit. Unless the credit is renewed, it will expire in 2024.
Avoid rising energy costs
California energy costs continue to rise and are the highest in the nation. You can combat the ever-increasing cost of electricity by reducing your consumption from the community grid. Keep in mind that you won’t be entirely self-sufficient and will still have some need for electricity from the grid. Although you can feel more comfortable knowing that your electricity bill is considerably lower as your solar panels help subsidize your bill.
There are going to be some days where your solar panels are producing energy at an incredibly efficient rate, and you’re not using much power in your home. When this happens, the electricity from your home doesn’t go to waste. Instead, you can sell that power back to the electric company for a small fee with net metering. With net metering, you can continue to lower your electricity bill incrementally. You’ll find that this is an excellent way to continue to offset the cost of energy that you consume from the public utility’s power grid.
What does it all add up to?
Over the last 23 years, the cost of solar panels has dropped nearly 70%, which means that you’ll save considerably compared to what you would have paid in 1998. Moreover, government incentives, tax credits, and rebates will essentially reimburse you with a significant chunk of the initial installation cost. Californians have plenty of opportunities to produce power for their homes with the long hours of sunlight. According to SolarNation, residents of the Bay Area save an average of as much as $187 a month on their power bill, including all sources from cutting down your monthly bill to net metering to tax credits.
Get in touch to get started
If you’d like to learn more about how you can get solar power energy savings, reach out to us at Solar Switch. We can help you identify the areas where you’ll save money now and well into the future with solar energy for your home. Give us a call at 831-236-6877 or send a message via our contact form.