How Can Solar Panels Save You Money?

Mar 17, 2022

With electricity costs rising, many homeowners are wondering how they can save money on their utility bills. One way of saving money on electricity is to install solar panels on the roof of your home. While solar panels may have a higher cost of installation, they can save you money in the long run. Depending on how many you install, they could even eliminate your electric bill entirely.

Solar Panels Reduce Electrical Grid Usage

Using electricity from the electrical grid costs money. Even one solar panel can reduce the amount of electricity you need to draw from the grid in order to power your home. Typically, homes with solar panels are still connected to the grid and use the solar panel power first, before turning to the grid to supplement that power supply. The more solar panels you have installed, the less you would need to draw electricity from the grid. This also means reduced electricity bills.

Solar Panels Can Eliminate Electrical Grid Usage

If you put enough solar panels on your home, you could eliminate the need to pull power from the electrical grid altogether. This is especially true in Florida, which gets a lot of sunshine throughout the year. Enough solar panels can generate enough electricity that you might not need to draw on the electrical grid for backup power at all, especially if your home is reasonably energy efficient.

Lots of Sun Increases Solar Panel Efficiency

If you live in an area that is very cloudy, with little sun throughout the year, solar panels might not be a good option for you. You’d need a lot of solar panels because with so little sunlight each one might not produce a lot of energy. However, if you live in a sunny area, like Florida, for example, then each solar panel will end up being much more efficient. You may need to install fewer solar panels to get the same amount of energy generated because of how much sun the area gets.

Governments May Offer Tax Credits

Because solar panels are environmentally friendly, governments, from the local to the state and up to the federal government, may offer tax credits for homeowners who install solar panels. Solar panel incentives from the government may change over time or may only last a few years before a new one is offered. Before investing in solar panels, check out what tax credits or other government incentives may be available to you in your area.

SEG Tariffs Can Earn You Money for Excess Power

If your solar panels generate more power than you actually need, you may be able to sell some of that power to the electrical grid. SEG tariffs pay homeowners a flat rate for the amount of power they put into the grid. These may be offered by local power companies. If you’re considering installing solar panels, look into what incentives power companies may offer. This may help you to determine how many solar panels you should install.