The Rodriguez family - Thousand Oaks, CA
“We had been looking in to getting solar for a while, but had trouble comparing and evaluating the prices installers were giving us. After finding Solar to the People, we received proposals from four installers in their network and they helped us determine which would be the best option for our house. We were extremely impressed with the quality of installers they recommended, and we ended up selecting one and paying about $6,400 less for our system than we had originally expected. Great company.”
The Henderson family - Bellmore, NY
“I was sick and tired of paying more and more for electricity each year. We never thought we could afford solar panels, but then we saw Solar to the People’s study on the prices of solar in New York and were shocked to learn how much the cost had dropped. I immediately went on their site and requested quotes from their installers. We couldn’t be happier with our decision to go solar – our average power bill now is just seven dollars a month! ”
Harry Wu and Gabriela Acomando - La Mesa, CA
“My wife and I were curious about solar, but frankly, I didn’t trust the solar sales people who had been calling us and knocking on our door. I came across Solar to the People in one of my Google searches, and they had a lot of really in depth information about solar on their site. To me, getting my questions answered online and being able to choose from multiple installers made all the difference. We got a great deal on our solar system and ended up paying about 20% less than the quotes we had gotten from other solar companies in the past. ”
The Thorpes - Newton, MA
“My husband and I both work full-time, and since we’ve had our daughter, we don’t have time to do a bunch of research on solar installers. We found Solar to the People through their online Solar Guide, and ended up purchasing our panels through their installer network. We wanted recommendations we could trust and Solar to the People gave us that peace of mind.”
Solar Panel Costs and Savings
- Homeowners can save over $30,000 over the course of 20 years with solar
- Average savings depend largely on the cost of electricity in the state and the financing option chosen
- Residents of states with higher energy prices will see greater savings on average with solar power
Average solar savings across the US over 20 years - a Solar To The People estimate
Homeowners across the US are saving a significant amount of money on their utility bills by switching to solar – which is why more and more Americans are going solar than ever before. As you can see from the map above, the average homeowner can save a significant amount by going solar in all 50 states – even Alaska.
The image to the right shows what the “average” US homeowner would save over 20 years by installing solar panels. We provide more detailed examples on specific areas below. The savings come from a reduced power bill for all homeowners, and from tax credits and incentives for those homeowners who choose to purchase their systems.
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Example of solar savings over time for the average homeowner –homeowner who went solar versus homeowner who didn’t go solar
Let’s take a look at someone who goes solar, with either a solar loan or solar lease in a high-cost power state like in the Northeast. In both cases, we assume that power prices increase on average 4.5% year (a reasonable assumption). Keep in mind this is just an example – everyone’s costs and savings differ. We provide many more full examples of solar costs and savings below for different homes in different regions.
In the example to the left, you can see that going solar provides significant savings over 20 years in both a case where a homeowner takes out a solar loan or a solar lease. In both cases, we assume the homeowner has a $250 monthly electric bill, and wants to replace that bill with the equivalent number of panels.
For the solar lease, we assume a 20 year term, with an escalator of 3.0% per year, and starting at $250 per month. You can see that this homeowner would save $13,503.14 over 20 years by going solar.
For the solar loan, we assume that the payments are $224.71, which is equivalent to a 15 year loan at 7% for a $25,000 solar system. In the first year, the homeowner is able to claim the Federal Tax Investment Credit, which is a 30% tax credit on the cost of a solar panel system, so we include a $7,500 tax credit in the first year, showing a savings of $4,803.38 in the first year. Over the 20 year time frame this homeowner would save $56,666.47 by going solar.
So how much would my savings and costs be with solar panels on my home?
So how much would you save when you go solar? The answer depends on four important factors: how much you pay for power, how much sunlight your homes receives, the incentive and rebates in your area, and the financing options you choose.
How big is your monthly electricity bill?
Your monthly power bill can tell you how much power you use and how much that power costs you per watt. Power costs increase every year, usually by a government-allowed increase for utility companies – and solar is one of the best ways to lock in your power price instead of having it go higher over time. Residential power prices have increased 57% over the past 14 years in the US as a whole, and even more in many areas.
Learn more about energy costs and their impact on solar savings here.
The amount of power you use obviously is the biggest determinant of your solar savings. Many larger homes use disproportionate amounts of energy in the summer due to their air conditioning systems, and solar is a great solution, since you generate the most savings during the cost peaks on hot summer days.
Even higher savings can be realized on large homes in areas with tiered energy rates – when you install solar your power consumption goes down, dropping you out of the highest cost tiers. It works exactly like a tax exemption.
How much power prices rise in the future
Power prices will continue to rise, and consumers who buy all their power from their utility must accept whatever increased price their utility charges them each year. Certain areas of the country, like California and the Northeast, have seen especially large increases in power prices over the past ten years. Customers who have made the choice to switch to solar choose to control the rate they pay for power.
Learn more about California solar incentives and rebates.
The amount of sun your home receives
While most people assume this is the most important part of deciding if you should go solar, it is actually much less important than the above two factors. This is a combination of where in the country you live (California has more sun than Maine), what direction your roof faces (South, West, etc), as well as how much shading your roof receives which is determined by presence of any shading like trees or buildings.
Learn if solar is right for your home here.
How you choose to pay for your solar panels
The financing option you choose has a lot to do with your overall savings. There are four common ways to pay for solar – loans, leases, PPAs (power purchase agreements), and cash purchases. Each solar financing method has its benefits and is appropriate for a different type of homeowner, and each one has an associated monthly cost for a set period of time, with the exception of a cash purchase, where you pay for your panels up front.
Learn more about solar financing here.
So the costs and savings are variable in every case – can you at least estimate them?
Obviously, the factors discussed above impact your solar costs and savings quite heavily, so we put together three examples of homes on the West Coast (California), the Mountain states (Colorado), and the Northeast (Massachusetts) that have reasonably clear roofs and that decide to go solar. We ran the costs and savings for these homeowners at $250 and $400 monthly electricity bills, and lay out the values below.