Can solar reduce my energy bill? This is the top question we receive from homeowners who contact us for a solar energy system quote. In most cases, the answer is a resounding Yes!
Installing a solar energy system can significantly reduce most homeowners’ energy bills. Here’s why going solar can help you save on energy costs and a few considerations to make before taking the leap.
You Generate Your Own Electricity
When you go solar, you generate your own electricity rather than purchasing energy from your utility. The more electricity you generate from your panels, the less you need to purchase from your utility (i.e. draw from the grid). What’s more, your solar panels are often producing electricity during peak sunlight hours, which often coincide with peak energy use hours (for Xcel Energy customers in Minnesota, peak hours are weekdays between 3 pm and 8 pm). Since utilities often raise rates during peak energy use hours, you can save additional money by generating your own power during that time.
You Can Sell Your Extra Solar Energy
When you go solar, not only do you save money on your energy bills, you can actually make money. Net metering programs allow you to send extra energy your system generates back to the grid. Your utility company pays for this energy in credits that you can apply to your future electricity bills. The bottom line? You can reduce or even eliminate your utility bill.
You Can Take Advantage of Solar Incentives & Rebates
Homeowners who install solar energy systems can take advantage of several different solar incentives and solar rebates. These incentives typically help you afford the installation of your solar energy system. So while they don’t lower your energy bill directly, they do help you lower your installation costs so you can start saving money on your bills faster.
You Can Save Energy to Use Later
When it is dark or cloudy, your solar panels won’t be absorbing energy from the sun. But this doesn’t mean your home gets plunged into darkness. A solar battery storage solution allows you to store excess energy to use later. This maximizes your use of your system and further reduces your reliance on the grid (and thus your energy bill).
Solar Energy Savings Example
Want to see how it works? Let’s say your monthly energy bill is $150. Then, you install a new solar energy system that reduces your energy consumption from the grid by 70 percent. Before you apply any net metering credits, your bill is already reduced by $105 (70 percent of $150) to become just $45 a month. Net metering credits could bring that bill closer to single digits.
What Traps to Avoid:
- Out of state door knockers
- Over or under spec’d systems
- Companies with bad reviews
- Companies that sub-contract out the work
A Few Considerations
Solar energy systems can save you a lot of money in the long term, but in the short-term, they are an investment. Incentives, rebates, and financing can make the upfront costs of installing a system more affordable or close to zero. Your system may also requires light maintenance to ensure optimal performance and continued savings.
The extent of the savings you’ll experience once your panels are installed will depend on the size of your solar energy system, your energy consumption, and the amount of sunlight your property receives. TruNorth Solar can help you understand the solar opportunity at your home and provide an estimate of how much your installation would cost after you take advantage of all available incentives and rebates.
So, can solar reduce my energy bill? Yes! The long-term savings you receive on your energy costs make solar energy an attractive, cost-cutting solution for many homeowners. TruNorth Solar is here to help you understand your options and decide if a system is the right choice for you and your property. For a free estimate, contact us today.
