Average Electric Bill with Solar Panels in 2023
Electricity is indispensable to daily life, yet it can often become costly. As we move toward more eco-friendly living practices, more people are turning to solar energy systems to power their homes – cutting carbon emissions while saving money on electric bills simultaneously! In this blog, “US Energy Discounts” will explain the average electric bill with solar panels today and any considerations before switching.
Average Monthly Electric Bill with Solar Panels?
In the United States, the monthly bill for solar panels depends on many different things. These are how big is the system, how much sunlight the panels get during the day, and how much energy costs where you live.
Depending on the size and quality of the equipment, a typical solar system for a family home is between 3 and 10 kilowatts (kW) and costs between $18,840 and $64,560. The amount of sunlight in your area is another essential thing to consider. Most of the time, states in the Southwest, like Arizona and California, get the most sunshine and have the best chance of making energy.
Electric Bill: Before and After Solar Panel
Suppose a sunlight energy family would like to lower their monthly energy bill to calculate the bills. They reside in Summerlin and pay at least $150 monthly for electricity. They intend to stay in their house for at least ten years because it is close to a top park, school, and a shopping mall. They’re considering installing an energy-efficient panel with a seven kWh system since it’s the best option for the dimensions of their roof and budget.
As per the Energy Information Administration (EIA), the average annual electricity consumption in the typical American home is 10,766 Kilowatt-hours (kWh). The EIA also provides a national average for residential electricity in September of 13.17 cents/kWh.
However, in Las Vegas, this price is just 12.15 cents/kWh. A typical household’s average monthly and annual electricity bills are approximately $1,418 and $118, respectively. In 2018 the EIA forecasted that energy prices to rise to an average across the country of 14C/kWh in 2028. However, they have dropped in the past ten years in Nevada and could continue to fall.
With their electricity bill above average and rising energy prices expected to continue, Solar is contemplating its future.
Electric Bill Without Solar Panel
A solar panel will remain in their house for at least ten years. As their children get older, they anticipate the cost of energy to rise too. If their current usage stays stable, they can use around 15,000 kWh a year, considering that the monthly fee is $115, and they pay 12.15 cents per kWh. If prices continue to rise from 12.15 cents/kWh up to 14 cents in 2028, they will be able to consume around 150,000 kWh of power in the next ten years, costing around $19,600.
Electric Bill With Solar Panel
After selecting a 7kWp solar panel and a 7 kW system, this family can produce around 7,000 kWh, just under half their energy requirements annually, in ideal conditions. Based on that, the cost per watt is 3.0 cents.
Their system costs $21,000, or $14,700 if they add an ITC. At the same time, their savings will be around $9,125. If they stay in their home for longer than 16 years, this system will become a cost-effective investment.
Solar Panel Savings Estimates by State
STATE | AVERAGE PRICE (8 KW SOLAR SYSTEM) | AVERAGE ELECTRICITY RATE PER STATE ($/KWH) | 25-YEAR SAVINGS |
Massachusetts | $20,957 | $0.31 | $96,700.94 |
New York | $20,602 | $0.23 | $66,655.55 |
Colorado | $20,365 | $0.14 | $34,156.61 |
Maryland | $18,530 | $0.16 | $41,045.58 |
New Jersey | $17,464 | $0.17 | $46,552.95 |
California | $16,931 | $0.24 | $76,720.59 |
Texas | $16,398 | $0.14 | $38,200.19 |
Arizona | $14,445 | $0.13 | $33,644.29 |
Florida | $15,274 | $0.14 | $38,979.60 |
Washington | $19,240 | $0.10 | $19,162.51 |
U.S. Total | $16,520 | $0.15 | $40,758.32 |
How Do You Estimate Your Savings Potential By Using Solar Panels?
With all the variables in play, estimating the savings on average monthly electric bills with solar panels can be challenging. To figure out the potential savings from this, follow these steps:
- Calculate your average monthly consumption of energy in kilowatt-hours (kWh) by reviewing your most recent electricity bills.
- Find the average price per unit of energy for the area you live in, as indicated on your bill for electricity or by the tables above. It can serve as a reference point to calculate the potential savings.
- This price will vary based on the size of your home, the energy consumption of your home, and other variables. Even with solar energy, certain houses will require power from the grid.
- If you’re off-grid or have a small home, you could provide your home with control using the help of a power Kit with a suitable array. If you have larger homes, using an entire home generator can also be a viable alternative to energy from the grid.
- Calculate the amount of electricity this system could produce based on the location of your home, along with the orientation and tilt of the panel as well as other aspects.
- Calculate the estimated savings for your monthly bill by subtracting the power produced by this system you have installed from your current monthly electricity bill. It could be a better estimation.
- Allow a margin of error to accommodate aspects such as financing costs, incentives, and variations in electricity rates as time passes.
- Take into consideration the long-term savings possibilities of panels. They could provide savings for more than 25 years, contingent on the condition of the system and its maintenance.
Conclusion
Switching to this system is a great option to reduce your monthly electricity bill with solar panels and CO2 emissions. With incentives and rebates readily available for installation costs, system installation has never been more accessible or affordable, so be sure to research before making this transition and work with a reliable installer to get maximum value out of it!
