Savings Breakdown: When Solar Will Start Paying Off

Homeowners are attracted to making the switch to solar power for two major reasons. First, they want to consume less non-renewable energy, living a more responsible and energy efficient lifestyle. Secondly, homeowners are looking for ways to save money by lowering their monthly utility costs.
 
It is common knowledge that solar panels are a great way to save money while reducing your consumption of energy produced by unsustainable sources. But just how much money can you save? And when will you start to experience these savings? As it turns out, a lot of factors influence how much money you will save and when those savings will take effect.

Understanding Variation in Monthly Utility Savings

Homeowners across the country can expect to save between $44 and $187 on monthly utility costs after installing a home solar system, and these savings can be experienced immediately after installing a solar energy system. Unfortunately, it’s nearly impossible to give an accurate estimate of monthly utility savings across the board. This is because savings vary greatly based on several different factors.
 
One of the strongest factors influencing your savings is your location, since the climate where you live greatly affects your monthly use of your heating and air conditioning system. Other factors playing a role in monthly utility savings, including the size and pitch of your roof, the size of your solar system, and even the fees imposed by your power company for your use of the power grid.

Initial Investment Influences Overall Savings

Although homeowners may experience significant savings on their monthly utility bills from their very first month relying on a solar energy system, their solar panels may not begin paying off right away. This is because what was initially spent on the solar panels and how the homeowner is paying for the system plays a role in the overall saving.
 
The initial cost of a solar system is typically between $20,000 and $35,000. Most loans require an initial down payment and then allow for affordable payments over the life of the loan. For most homeowners, this payment does not exceed what they previously spent per month on utility costs before making the switching to solar. Once a system is paid for in full, the savings greatly increases. Savings over twenty years varies greatly based on the climate—and depending on your location, you could save between $8,500 and $64,000 over the course of twenty years.

Selling Your Home: Will You Recoup the Cost of Installation?

In addition to the savings on monthly utility bills provided by a home solar system, you can expect the value of your home to increase significantly when you make the switch to solar energy. In fact, most homeowners can anticipate recouping 97 percent of their initial investment if they choose to sell after having a solar system installed. 
 
When it comes down to it, even though the savings vary greatly from location to location, the team at Modernize believes that solar panels are always a good investment. In addition to saving homeowners thousands of dollars on utility costs, switching to solar energy is a big step towards living a more sustainable life, reducing your consumption of energy created by nonrenewable sources.