In recent years, the technology of solar power is gradually being utilized for home energy supply, and one of the important reasons for this is that homeowners expect to save money on their electricity bills by using solar panel systems. Therefore, before designing and purchasing a solar panel system, I believe you and other homeowners will want to ask how much can I save on my electric bill by installing a solar panel system, how much will I have to pay each month after the installation and will that amount be significantly reduced compared to the amount before the installation. In this article, we will analyse and answer your questions about the average monthly electricity bill after using solar panels from multiple perspectives.
Currently, most homes are still powered by energy companies burning fossil fuels, but in recent years, due to a variety of factors such as energy shortages and rising labor costs, the price of electricity from energy companies has been rising, and in general, the average cost of electricity has been increasing in all regions. Of course, the specifics of each property can also have a big impact on electricity expenses, such as household electricity habits, property size, family size, and so on.
Taking many of these factors into account, according to the National Energy Information Administration and the Renewable Energy Laboratory, the average electricity bill in each state is around $1,500-$2,500 per year, or $120-$210 per month.
If you need to calculate your personal monthly bill, you can check your electric bill for the last 12 months and take the average of your monthly electric expenses. It is worth noting that in some special cases you will also need to look at the average monthly kWh consumption and the local price per kWh per month.
In order to calculate the monthly cost of electricity for your home after installing a solar panel system, you also need to know how much you will save on your monthly electricity bill by installing a solar panel system, and then subtracting the two to arrive at a specific value.
Since solar panels generate electricity by collecting the energy within the sunlight and converting it into electricity, the amount of effective solar energy that can be absorbed will greatly affect the amount of electricity generated by the solar system, which in turn will determine the amount of money that it can help to save on your electricity bill. In the specific calculation, we can mainly consider the following factors:
Size of the solar panel system installed
When you consider installing solar panels, you can find that each solar panel system is labeled with its wattage. This wattage refers to the rated power generated by the solar panel system under ideal lighting conditions, and the value also represents the size of the solar panel to some extent. Undoubtedly, the higher the wattage rating, i.e., the larger the solar panel system, the more electricity it can produce under the same lighting conditions, and the more it can help save on electricity bills.
It is important to note that while a larger solar panel system can save you more money on your electric bill, the larger the solar panel system, the more roof area it requires and the higher the upfront cost required for installation. Therefore, when designing a solar panel system for your property, you will also need to consider a combination of practical factors to determine the size of the installation.
Installation Location and Angle
The location and angle of the installation will affect the amount of sunlight that the solar panels will receive and therefore the amount of electricity they will save. Generally speaking, solar panels can be exposed to sunlight at certain times of the day regardless of the installation orientation, but the output efficiency of solar panels installed facing west or east will be low compared to those installed facing south, and if your roof is facing north, its power generation efficiency will be too low to be suitable for installing solar panels.
Secondly, the slope of your roof will also affect the efficiency of your solar panels. If your roof is too steep, this not only means that there will be a lot of unnecessary hassle in installing solar panels, but also that you may need to pay for more labor costs or additional fixtures. What’s more, this excessive angle will result in less direct sunlight hitting the PV panels, making solar panels installed with too much of a slope less efficient at generating electricity.
Therefore, in order to save more money on your electricity bill, it is important to prioritize the condition of your roof and find the most suitable installation location.
Types of solar energy systems
Apart from external influences, the type of solar energy system also affects the amount of money it saves on electricity bills.
Generally, solar systems are categorized into off-grid and on-grid systems. The difference between the two is mainly that grid-connected solar systems are connected to the main grid, while off-grid solar systems are not.
In the case of off-grid solar systems, if you do not install a solar array, this type of system will only be able to power your appliances during the day when the solar panels are generating electricity. However, you can choose to install a solar array, which usually has a powerful energy storage capacity that can substantially increase the power supply of your solar system and save you a lot of money on your electric bill, but the installation of a solar array also comes with more upfront costs.
With a grid-connected solar system, you can transport the excess power you produce directly to the main grid during the day, and in return, the energy company will provide you with a certain amount of credits that allow you to use the grid power directly during the night. This avoids the cost of installing solar panels, but in the event of a grid failure, the system will not be able to supply energy properly.
Incentives offered by local governments and energy companies
In order to encourage local customers to install solar panel systems, local governments and energy companies generally offer incentives to customers, such as the energy company’s net metering program: excess electricity produced by a customer’s solar system can be sent to the main grid, earning you credits that will bring you an additional amount of savings. Therefore, good incentives will result in better savings for you.
Solar Resources at the Property’s Location
The amount of light energy that can be collected by a solar panel system can vary greatly depending on the dimension of the property. The longer the peak hours of sunshine in your location, the more electricity your solar panel system will generate and the more you will save on your electric bill. Conversely, the shorter your location’s peak sunlight hours, the less power your solar panel system generates, the less you save on your electricity bill.
By summarizing the common ways, after installing solar panel system, in order to reduce the monthly electricity bill that the family needs to spend, you can enhance the level through the following two perspectives of the solution.
Increasing the power generation benefits of solar panel systems
In order to increase the amount of electricity generated by the solar panels, increase the amount of light energy that the solar panels can receive. You can remove removable shades around your property, such as trees. In addition to this, you can clean the surface of your solar panels to ensure that they are not obscured by a lot of dust and fallen leaves.
Reduce the amount of energy consumed in your home
Provided that the solar panel system is effective in generating electricity, you can also choose to reduce the amount of unnecessary energy consumption in your home so as to reduce your electricity bill. Examples include saving electricity, reducing unnecessary lights, etc.
