Fact or Myth: Do Solar Panels Save Money?

As we progress in the future, consumerism is reaching new heights each year which causes a rise in the inflation rate as well. As a result, it increases the cost of products, services, and utility expenses in the process. Now, the most noticeable increase we are experiencing is our monthly electricity bill. Can you relate? With this being said—a lot of homeowners are turning to power alternatives such as solar generators in helping them manage their expenses. But do solar panels save money?

And the answer is yes. Although solar power stations are costly, you have to bear in mind that it has the potential to help you save money in the long run. In today’s blog, I will attempt to shed light on the important issue of whether solar panels could indeed help you with your monthly expenses on electricity bills. So without any further delays, let’s get right into it.

What’s the Average Electric Bill?

According to the latest data for 2023, the average monthly electric bill in the United States is $117.46, with a price per kilowatt-hour (kWh) of $0.14. On an annual basis, US households spend an average of $1,409.52 on electricity, consuming approximately 893 kilowatt-hours per month. It's important to note that these figures are averages and can vary based on factors such as climate, daylight hours, and regional differences.

Additionally, it is worth mentioning that electricity bills can differ significantly between states. For example, in Hawaii, the average residential electric bill was the highest in 2021, while Utah had the lowest average bill [1]. Various factors contribute to higher bills, such as energy-intensive appliances, poor insulation, inefficient energy habits, and extreme weather conditions. To lower monthly bills, it is advisable to adopt energy-saving practices and consider alternative energy sources like solar power.

How Much Can You Save by Turning to Solar Panels?

On average, a solar panel should give you a useful life of about 25 to 30 years given that they are properly taken care of and maintained over the years. In any case, it should still provide you with productive years between 17 to 22 years before you observe signs of deterioration and inefficiency. And if you indeed fully maximize the useful life of the solar panels it should be able to aid you in saving an estimated cost of about $1,500 in a year! So what it means is that you would save approximately $25,500 to $33,000 over the course of the solar panel’s average useful life!

6 Factors that Affect Your Savings When Using Solar Panels

As you see from the previous section, solar panels are indeed a lifesaver to your life savings because it essentially cuts expenses from the electricity bills you settle every month or so. But if you are still wondering do solar panels save money, then consider the pointers I listed below—

Where You Live

The amount of sunlight and solar resources available in your location significantly impact the energy production and potential savings of your solar panel system. Regions with abundant sunshine generally have greater solar energy generation potential and, therefore, higher savings.

Size of the Solar Panel System

Yes. Size does matter when it comes to the dimensions of the solar panels. And the larger the solar panels are, the more capable they are in harnessing energy from the sun and converting them to usable energy that powers up our electronics and home appliances.

Energy Usage

The amount of electricity you consume plays a role in determining your savings with solar panels. If your energy consumption is high, a larger solar panel system may be required to cover a larger portion of your usage and maximize your savings.

Cost of Electricity

The cost of electricity in your area affects the financial benefits of solar panels. Higher electricity rates mean greater savings when you generate your own electricity with solar panels, as you reduce or eliminate the need to purchase electricity from the grid.

Incentives Available

Government incentives, rebates, and tax credits can significantly impact the upfront cost and overall savings of installing solar panels. These financial incentives help reduce the initial investment and shorten the payback period, increasing your long-term savings.

Quality of Your Panels

Last but not least is you have to be certain of the solar panels’ quality you are buying. And this is because substandard panels may not provide you with the power efficiency you seek, and they are likely to break down easily. Thus, it causes you to make more expenses than save money. With this being said—it is of utmost importance that you opt for quality solar panels like the Anker 625 Solar Panel offers reliability and high efficiency.

The solar panel has a high conversion efficiency of 23%, which is one of the highest conversion rates in the solar panel industry. This high conversion rate ensures that the panel can absorb maximum sunlight even on cloudy days, making it an ideal power solution for outdoor activities such as camping, road trips, and RVing.

Moreover, Anker 625 Solar Panel comes equipped with the proprietary Suncast technology that enables it to adjust to the sunlight and capture direct sunlight for maximum efficiency. With this technology, the solar panel can generate more energy from the sun, ensuring that your power generator receives maximum power all day long.

The lightweight solar panel features both USB-C and USB-A output ports, enabling you to charge two devices simultaneously，so that you can power all your essential devices, such as laptops, phones, tablets, and even cameras, while enjoying your outdoor activities.

Besides its exceptional features, the Anker 625 Solar Panel is also highly durable. It is scratch-resistant, weather-resistant, and built to last. This durability means that the solar panel can withstand harsh outdoor conditions and last for years, making it a reliable power source for all your outdoor adventures.

Wrapping Up

I hope the blog for today has provided you with the insights you need on the question of do solar panels save money. And as repeatedly emphasized all throughout, the answer is that solar generators can help you cut expenses on monthly electricity bills. And this is because it uses reusable energy from the sun instead of depending on the power supply from concessionaires.

Frequently Asked Questions About Do Solar Panels Save Money

Below are additional concerns many homeowners have about do solar panels save money—

How Much Can You Save Each Month with Solar Panels?

The bull part figure of household savings from using solar panels and generators in reducing expenses incurred from electricity bills is approximately $1,500 a year or $125 in a month.

Is Solar a Good Investment?

Solar can be a good investment for many reasons. Firstly, it offers long-term savings on electricity bills, reducing reliance on utility companies and providing a fixed energy cost over time. Additionally, solar power systems have a long lifespan, typically lasting 25 years or more, which allows for substantial financial benefits over their lifetime. Furthermore, various financial incentives such as tax credits and rebates can help offset the upfront costs of installation. With advancements in technology and declining production costs, solar panels have become more affordable and efficient, making them a viable and environmentally friendly investment for individuals and businesses looking to reduce their carbon footprint and save money in the long run.

What are the Negatives of Solar Panels?

While solar panels offer numerous benefits, there are a few drawbacks to consider. Firstly, solar panels rely on direct sunlight, so their energy production can be affected by cloudy weather or shading. Secondly, regular maintenance is required to ensure optimal performance and longevity of the panels. Additionally, the initial cost of solar generators and panels can be expensive, although there are financial incentives available to help offset these costs. Lastly, the installation process can be complex and challenging, requiring professional expertise and potentially impacting the aesthetics of the property. Despite these negatives, the overall benefits of solar panels often outweigh these limitations, making them a worthwhile investment for many.