As a household owner, you definitely want to stop paying so much for electricity. The cost of conventional energy forms is constantly on the rise. As a result, consumers are spending more every year to light, heat, and run their households. Solar power is a natural source of energy that is cheaper and environmentally safe. Here are some of the ways solar energy can help you save you money for your home.
Save Money On Electricity Bills
After installing solar panels in your house, you do not have to rely entirely on a utility company for electricity. Solar panels allow you to tap into the sun’s energy which is converted into electricity. When the sun is not visible, like at night or during a storm, solar panels cannot generate electricity; therefore, your local utility company will be your source of electricity. However, if you store surplus energy in the panels’ batteries during the day, there will be no need to rely on the utility company because you will have enough power to sustain you at night.
Calculating the amount of money you spend on electricity will help you determine how much you will save with solar energy. To calculate your average energy bill, multiply the average home’s electricity consumption by the cost per kilowatt for that particular month. Compare this amount with how much you will spend with solar panels and you will note a significant difference in your electricity bills. Furthermore, with solar power electricity bills are consistent throughout the year which is not the case for energy from fossil fuels whose prices typically go up and down on a monthly basis.
Save Money With Net Metering
As noted above, when you turn to solar energy, you will still be connected to your utility company or the power grid. Net metering enables you to earn energy credits for the excess energy your solar panels produce. When your panels produce excess energy, the left over can be sent to the grid and this will be reduced from your electricity bill. This means your utility company will convert the surplus energy into credits.
When you need power at night, your utility company will send you back those credits. Your meter will track the energy you send to and take from the grid. At the end of the year, if your total energy consumption equals the energy your panels have produced, you will have a net zero electricity bill. This means when you install solar panels and arrange for net metering, you can significantly reduce your electricity bills.
Save Money With Tax Credits
The U.S. Government introduced a program to promote the transition of power from fossil fuels to natural sources like wind and solar. The tax credit program reduces the cost of the transition for homeowners. Under the program, homeowners who move to solar power are eligible for the following tax credits:
- 22% for solar systems installed after 12/31/2020 and before 01/01/2022
- 26% for solar systems installed after 12/31/2019 and before 01/01/2021
- 30% for solar systems installed by 12/31/2019
The costs included in calculating the credits are labor costs for site preparation, original system assembly or installation, and wiring to connect the system to your home. The credit can be claimed during the year when the installation is completed. The tax credit acts as a reduction of your tax liability for that respective year. If the tax credit is more than your tax liability for that year, the excess is carried forward to reduce your tax bill for subsequent years.
Save Money On Water Heating
Apart from solar panels, there are other forms of solar energy. A solar water heating system is one example. It works like solar power because it draws energy from the sun to reduce your reliance on oil or natural gas-based energy sources. Solar hot water systems trap energy from the sun and utilize it to heat water in your home.
The savings you make from a solar hot water system will depend on how your water is heated. For example, if a solar hot water system replaces gasoline or electricity, the payback is quite significant. Like solar panels, solar water heating systems also have tax rebates and credits.
Save Money With Electric Cars
Many companies from Tesla to Nissan are investing in electric cars. Electric cars are an alternative to gasoline guzzling vehicles. While the price of charging electric cars at home with fossil fuels is costly, solar panels present a chance for cost savings.
After you determine how much electricity your car needs to charge, you can install the appropriate number of solar panels to match with the energy consumption of the car. Tax rebates and credits also apply to this investment enabling you to save money. Considering the amount of money you would spend to charge your electric vehicle at home along with electrical appliances using fossil fuel energy, solar power would help you make huge savings on electric bills.
Endnote
The first step to switching to solar energy is choosing a solution that will achieve your energy goals. Next, you need to make an order for the package that suits you. We will need to get permission for your grid connect solar system from your local electricity producer. We shall have to work with your electricity distributor to coordinate the gross meter installation.
The renewable energy adviser will give you a proposed layout for your installation. Afterwards, you will need to book an installation schedule with us. You should give us all the details regarding the layout for your installation. You will have to sign paperwork authorizing the creation of your Small Technology Certificates.
Finally, we will set a date for the installation. Before you begin this process, it is better to reach us for a free no-obligation solar consultation. For more information on how to switch to solar power, call or visit us today!
