Solar energy is directly taken from the sun through light rays. The light rays hit the Solar Panels which contain photovoltaic cells. These photovoltaic cells convert the energy of light rays into Electric Current, which passed through an inverter to convert into Electricity. Hence, you can make significant savings from solar panels installed in your house.
Solar panels come in a variety of sizes and power. You can buy solar panels and install them on the roof of your house. You can measure the roof and buy solar panels accordingly. This is one of the main advantages of solar panels.
Do solar panels save money?
The answer to this FAQ is “YES”, solar panels do significant savings. On average, solar panels are calculated to save in the range of $20,000 to $75,000 in the life span of solar panels. But, many factors influence the savings from Solar Panels. Such as the rate per unit of electricity from the grid and the average monthly usage of electricity in the house. However, solar panels provide more savings than expected by the common man. You just need to know how much to expect and how to manage to save money by using solar panels instead of using electricity from the grid. Now we discuss the important factors that you must know before calculating the savings.
Savings from solar panels is a long-term process
Factors that affect the savings:
The following important factors highly influence your savings.
- Local Grid Prices:
Every country charges differently against the electricity per unit. The charge rate against electricity may also vary from region to region within a state or city. The graph of the price of electricity has been consistently rising over time in the past few years. The price of electricity has never decreased in any country. You can calculate the average monthly expense of electricity by using your monthly bills for the past few months. You should take at least bills of 8 months and calculate an average. Once you know how much you pay for electricity every month, you can easily figure out your savings by using solar panels.
- Types of Panels:
There are different types of solar panels depending on quality and manufacturers. It is recommended to explore the market to find the best price and type as per your needs. Installation costs also play a vital role. Explore different installation companies to know the best price and best installation. Once you know what to buy and who will install it, you can go for it.
- The number of solar panels:
Calculate the requirement of energy in your house and then estimate how many solar panels you need to buy. When you know the need for electricity and how many panels you have to buy, you can compare the expenses and calculate the savings. You will surely save a lot.
- Solar battery system:
As you know the sun shines only during the day, so you cannot produce electricity overnight. You must have installed a set of batteries that store electricity during the day to be used at night. The cost of a battery system affects the savings from solar panels. You must add solar battery cost to the total cost of buying and installing of Solar system.
- Climate or average sun exposure:
Climate and exposure to the sun are very important for producing energy from the sun. The areas which have more daylight hours and clear bright sunshine will produce more energy. Solar panels are not affected by warm or cold temperatures. The only important factor is bright sunshine and clear weather. The rainy and overcast weather decreases the efficiency of panels.
- Usage of electricity:
Household usage of electricity is directly proportional to the production of solar energy. Simply, you will have to produce more energy if you have more usage of energy. If the production of energy is less than you use, you will have to purchase energy from the grid to fulfill the deficiency. It can decrease savings. So, calculate your usage carefully and decrease it by possible means.
Under the Net-metering policy, you can sell back the extra electricity to the grid. You can decrease your utility bill of electricity. Saving under this policy varies from company to company and state to state. Some companies decrease the utility bill on retail rate while other competitors may offer wholesale rate. Choose the company wisely and sell back energy to increase savings.
- Tax and Tariffs:
The tax and Tariffs are charges as per the rules of every state. It may be higher in one state while others have provided free tariff facilities on the usage of solar panels. Get a deep knowledge of the rules of taxation and tariff on purchasing and installation of solar panels. Compare this cost to the annual expense of energy. Now you can compute the time you will take to recover the cost.
Estimated Savings from solar panels:
The savings from solar panels is a long-term project. It will take almost five years to recover the cost you have spent on purchasing and installing of complete solar panel system including batteries. Once your cost is recovered through savings, you will enjoy free energy for the next two to three decades. You will have no worries about the energy of paying bills. A little bit of maintenance will be required. You can increase the life span of solar panels if you provide the proper maintenance and care.
It can be concluded that solar panels can bring great ease and comfort into your life by decreasing the worry of paying bills every month. You will also get monetary benefits by investing once. You will recover the cost by not paying bills for four to five years. Later, your life will be brightened for decades without paying a single penny to the grid. Moreover, you can sell back the electricity to the grid.
We have provided almost all the details of solar panels and how you can save money through solar energy. You can ask further questions related to the topic. Your questions will be answered. You will be given the best possible solution by experts on our team.