The question of how exactly solar energy can save money is very common. Many solar companies talk about the cost-effectiveness of solar energy, but very few of them pinpoint where the savings will come from. There is also some confusion on the precise impact the use of solar energy has on the environment.
The following information should shed some light on these subjects and help you understand why you ought to go solar:
1. Reduces Electric Bills
Solar panels reduce your reliance on utility companies. All your energy needs will be met by the free and abundant energy churned by the sun every day. This directly reduces your utility bills.
Note that in some cases, you’ll still need the energy from a utility company. This is especially the case during storms and maybe at night. But even so, you will still make more savings with solar as your primary source of energy.
Additionally, some of the latest solar energy companies provide tech that facilitates maximum energy saving during the day. The energy can then be used at night or during storms.
2. Saves Water Heating Bills
Solar water heating systems will significantly reduce your consumption of natural gas and other oil-based sources of energy. The exact savings you will make depends on factors like water consumption and the current source of energy. For instance, replacing electricity and gasoline is likely to make more savings than natural gas.
The good news is some tools can help you calculate the possible savings you’d make and a good solar estimation software allows you to input certain data, which is used to create a more precise figure of the savings you can expect. Not just from the solar hot water system but the panels as well.
Installation of solar water heating systems is also fairly easy. The latest systems are super compact, so they take a limited footprint on your roof. They can also be installed alongside the panels without any complications.
3. Saves Money Through Tax Breaks
Federal and state governments run incentive programs to support the switch to solar energy. For instance, the federal government can pay for up to 30% of the total installation cost!
Meanwhile, state governments offer grants and other incentives to homes that are going solar. Solar Renewable Energy Certificates (SRECs) are popular among states like Maryland. Utility companies can buy your SRECs, giving you hundreds if not thousands of dollars in income.
States also provide solar tax credit similar to the federal government’s Investment Tax Credit (ITC), so they let you deduct some of your solar expenses from your state taxes. These credits can change with each passing year and vary from state to state so it may be in your best interest to have an expert help you file your tax return for the year to ensure you're getting every advantage you may qualify for.
4. Reduces Running Costs of Electric Cars
Electric cars are all the buzz today. In 2020, the sale of electric cars increased by 43% despite the economic challenges caused by the pandemic. Predictions show this figure will go even higher in the next decade.
Electric vehicles are fashionable and friendlier to the environment but charging them can be pretty expensive. Solar panels are the obvious option to keep your Tesla running while paying low utility bills. They’ll help you save thousands of dollars every year.
Calculate the miles per gallon equivalent for your electric car to determine the number of panels you need to install.
The other perk of installing panels for your electric vehicles is you’ll be charging your car from the comfort of your home. The convenience is unmatched. It also saves you the hassle of locating charging stations if you live in a remote area.
5. Lowers Greenhouse Gas Emission
Climate change is a real and serious concern. Issues of rising sea levels, extreme temperatures, and drastic ecosystem changes are becoming too familiar.
Solar is a clean and renewable energy that reduces greenhouse gas emissions. As more people embrace clean energy, the demand and use of harmful fossil fuels drop sharply.
Here is a fun fact for you; when a home consuming 8,288 kWh of electricity annually switches to solar energy, the reduction in gas emission is equivalent to planting 150 trees every year!
6. Decreases Water Usage
Nuclear energy and Hydropower consume a lot of water to generate electricity. Hydropower even requires the building of dams to control water flow. This has a substantial impact on the ecosystem.
Solar power does not use water. It is friendly to the ecosystem and can reduce water scarcity.
There’s absolutely no doubt that solar energy will keep money in your pockets. How much money? Well, the savings usually vary from one household to the next, depending on energy consumption patterns. You can use online tools to get a better approximation of the cash your home can save.