According to recent analysis by the Rocky Mountain Institute, monthly power expenses for a typical home in Westchester County, New York, might reach $350 by 2030.
However, the same family may pay $260 or less per month if solar panels and battery storage are added. The moment has come for solar.
Solar energy may significantly cut your power cost, to the point where it no longer plays a big role in your monthly budget. Certain fortunate homes may even be able to remove their power expense entirely.
Average monthly electric bill with solar panels
The truth is that it relies on a number of factors. The energy generated by your solar installation, the local electric rate, and the energy consumed by your household.
By optimizing your household’s energy use and installing solar panels on your roof, you may create a financial equation that balances your electric expense and energy demands. Then tally up the thousands of dollars you’ll save over the course of a decade by going solar.
Additionally, there are additional points available. Due to the cost savings associated with solar, your benefits will be magnified even further in places with high electric rates.
Additionally, if energy prices continue to rise, your financial stability will improve even more during the 25-year life of your home solar system. Solar empowers you to take charge. It is your residence, your source of vitality.
How Much is the Average Electric Bill?
Your home is everything but ordinary. However, for the purpose of discussion, let us discuss averages.
According to recent Energy Information Administration (EIA) data, the average home in the United States consumes roughly 10,766 kilowatt-hours (kWh) of energy each year.
Their average monthly use is 897 kWh. Additionally, the household pays 12.57 cents per kWh. Thus, the average monthly power cost for an American is $113 (897 kWh x 21.57 = $112.75).
Here is a comparison of the cost of electricity in two states that contribute to the national average. In 2018, the average monthly energy bill in Colorado was $105, with an annual cost of $1,260. Connecticut’s statistics during the same time period were $186 and $2,232, respectively. Below is a thorough breakdown of the typical power bills throughout the states.
Average Monthly Electric Bill
Average Yearly Electric Cost
How Much Will Solar Panels Reduce My Electric Bill?
Your solar panel power bill is determined by a few things. They have an effect on your monthly energy bills when combined. Planning for a better tomorrow begins now at home.
The Energy Production of Your Residential Solar System Maximizing the energy generated by your solar installation is critical to providing your home with reliable, stable electricity. While greater does not necessarily equal better, the size of your home solar system has a direct impact on your power cost.
Unless you can rely on net metering, your best option is frequently to install solar panels that cover 100 percent of your power demands. Increase your system’s kilowatt hours if you anticipate to increase your electric demand, such as charging a hybrid electric vehicle or heating a hot tub.
To maximize the energy production from certain rooftops, it may be beneficial to install premium, smaller solar panels with a greater energy yield. Nonetheless, with additional roof space, you may be able to satisfy your power demands with bigger, more affordable standard efficiency panels.
Solar systems for homes generally range in capacity from 5 to 10 kilowatts. The size of the solar system and other factors such as shade have an effect on the quantity of power generated. On average, a 5 kW solar panel system produces around 8,000 kilowatt hours of electricity per year. This clean, renewable energy is adequate to meet the annual energy needs of a large number of families.
When determining the cost of your power bill after a solar installation, consider the cost advantage of a home battery. By including battery storage into your solar installation, you may considerably increase your financial stability in the face of escalating electricity bills.
With Sunrun solar panels and a Brightbox battery installed in your house, you’ll gain control over your energy consumption, have access to power during outages, contribute to a cleaner environment, and keep more money in your pocket.
Energy Consumption in Your Home
How much power does your home typically consume? What power-related equipment and personal habits do you have? Do you save electricity by hanging your clothing to dry? Or do you like fresh-from-the-dryer warm, fluffy towels?
Clearly, your energy use plays a significant role in determining your electric cost. The US Energy Information Administration reports that the average monthly residential energy use in the United States is 897 kilowatt hours.
Therefore, before investing in a solar system for your home, determine your household’s energy use. Ascertain that your house solar installation is capable of meeting your electrical needs. Certain households desire to cover only a portion of their energy use. Many in the solar industry, on the other hand, want to cover everything and envisage negative meter readings.
Residential solar systems are quite varied. Nonetheless, a home solar system that meets your whole energy consumption demands is the simplest way to reduce your power expenses.
Your Local Electric Rates
Finally, you must consider the costs and rate structure of your electric business. The average cost of power in the United States is expected to increase by 3% annually in the short future. Then, as you might expect, energy prices will likely continue to rise incrementally.
In terms of averages, the average energy usage of a household in the United States multiplied by the average electric rate per kilowatt hour results in an average monthly electric bill of $113.20 in the United States.
How Do I Read this Bill?
Clean energy and a consistently pleasant house begin with solar energy. The majority of power bills cover a few common components. These components are often prominent in a residential solar system:
Service Charges: A solar system installed on your house will not eliminate ordinary service expenses. Service costs are the charges levied by the electric provider for connecting your home to the grid. Generally, the cost is fixed on a monthly basis regardless of how much power you consume.
Taxes: According to Benjamin Franklin, the only certainties in this life are death and taxes. Nonetheless, a solar installation makes life in your house far more enjoyable and financially secure.
Electric companies often charge based on the quantity of grid electricity consumed. As a result, the more energy generated by your home solar system, the less tax you pay.
Electricity Consumption: After the bottom line on your energy statement, the component we examine is power consumption. The electric utility bills on a volumetric basis (or the number of kilowatt-hours used).
With a home solar system, your power bill will reflect just the kilowatt hours consumed from the grid. They do not include the power generated by your solar panels.
Indeed, they have no idea how much solar energy you have consumed. Therefore, if you just used energy generated by your solar panels, your electricity cost would be $0.
Additionally, with a grid-connected residential solar system, the electric company is aware of the amount of extra energy your solar installation contributes to the grid. This is where credits for net metering come into play. Credits accrued on your investment improve the financial worth and rate of return.
Typically, your kilowatt hour credit is shown on your next payment or as a total at the end of the year. If you have net metering, you may use the following calculator to estimate your power use charges.
Kilowatt Hours Consumed from the Grid — (minus) Your total number of kilowatt hour credits for surplus power provided to the grid equals your total amount of electric consumption charges. When you provide more power to the grid than your residence consumes, a negative figure is generated. At the conclusion of the month, this negative kilowatt hour balance may be carried forward. Alternatively, the electric provider may provide you with a cash credit, allowing you to save more money in your budget.
Utilize the sun’s energy by installing Sunrun solar panels and a Brightbox battery. They’ll capture every sunrise and sunset, as well as lots of sunlight beams in between, to illuminate your home.
Annual True-up Statement: You may be familiar with the term “annual true-up statement.” It’s another way of stating “balance sheet” in a sustainable, clean energy context.
The true-up statement is an annual bill that you will get from the electric provider at the conclusion of each 12-month billing cycle. It reconciles all of your prior year’s electrical charges, credits, and reimbursements.
Typically, the message is a cheerful rounding up of your lowered grid power consumption. This translates into cash rewards for your home as a result of your solar panels’ output.
However, in rare instances, a debt may be owed on the last power bill of your annual billing cycle. Unexpected changes in your lifestyle may have an effect on your power use and result in an increase in your statement balance.
Additionally, bear in mind that any outstanding credits on your true-up invoice are canceled out prior to the start of your next payment period. Therefore, hold a party and enjoy them while you still have them.
Sunrun empowers you to pick and control your home’s energy source. We’re installing solar panels on your roof, a battery system in your home, and delivering the electricity directly into your hands.
How Do Current Prices Compare to Historical Prices?
In 2008, the typical home in the United States paid 9.74 cents per kilowatt hour of power. By 2018, it has risen to 12.57 cents per kilowatt hour.
While a difference of 2.83 may not seem like much, it adds up to a 2.9 percent yearly gain. As a result, the average American’s energy bill is now 29 percent more expensive than it was ten years ago. That’s a substantial sum of money that could have been used for anything else, such as a down payment, student loans, or retirement.
While the cost of solar energy is predictable, the cost of electricity is not.
According to the EIA’s 2018 Annual Energy Outlook, average national electric prices will grow from 12.57 cents per kilowatt hour in 2018 to 14 cents per kilowatt hour in 2028. Here is an illustration of how this rise affects some households.
In 2018, the average electric rate in Arizona was a negative 3% below the national average. Nonetheless, by 2028, the state’s electric prices are expected to climb by 9% above the 2018 cost for comparable consumption.
True, energy costs fluctuate. However, they almost invariably increase in the long run. Additionally, electric rate rises are often uncontrollable.
Therefore, exit this stair master of infinite rate increases—you are not progressing. Consider a solar-powered home system. With regular power costs, you can regain control of your home budget. Additionally, you may be certain that you are contributing to a sustainable community.
Solar panels safeguard your wallet against rate hikes and lock in cheaper prices. Consider the possibility of clean, inexpensive, and reliable energy today and in the future. Together, we can make it a reality.
There is plenty sunlight to go around. Participate in the solar energy market. Sunrun provides solar leases and power purchase agreements to get you started (PPAs). Both of these alternatives provide you with the energy cost savings and environmental benefits associated with a home solar system. Additionally, we provide payment choices for anyone interested in purchasing and maintaining their own solar system.
Sunrun is the simplest, most intelligent method to become involved in the solar energy revolution. All Sunrun service agreements offer a guaranteed 25 years of support*.
To make the best financial decision possible, it’s beneficial to have solar lease and PPA expenses explained.
In most cases, a solar firm will do the installation. After that, the solar provider leases you the equipment placed on your roof for a predetermined monthly payment. Alternatively, they can sell you the power generated by the panels at a fixed amount per kilowatt hour. They have the following effect on your bill:
Solar Lease: If you’re a creature of habit, this is the lease for you. With a solar lease, your solar supplier will send you the same bill each month. This fixed price is determined by the quantity of energy generated by your panels during their 25-year lifetime. This money is subsequently divided into regular monthly installments during the lease’s term.
Solar PPA: If you like to take a chance, consider a PPA. You pay the solar firm a set fee per kilowatt hour generated by your home solar system under a Solar PPA. This rate is typically lower than what the power provider charges.
If you choose a solar lease or power purchase agreement, we’ll answer all your questions about how to read your new electricity bill. We simplify and manage it.
Additional Benefits When Using a Battery Obviously, homeowners in states with higher power rates will benefit from a home solar battery installation more financially.
Battery storage just cannot be surpassed in terms of decreased electricity costs and power during blackouts. The Brightbox home battery system powers your home for about 8 to 12 hours at night or during a blackout. Each day, your peace of mind recharges with your home solar battery.
Brightbox enables you to store surplus energy generated by your solar panels. Then, you may utilize it to power the house during times of extreme necessity. Solar panels enable you to move your energy use away from high on-peak rates, so lowering your power bill.
Additionally, a residential solar system doubles your financial benefit from net energy metering (NEM). With solar battery storage, you can utilize even more of the power generated by your panels and credit any excess.
Sunrun’s residential solar systems are tailored to your home’s construction, lifestyle, energy use, and financial objectives. We will walk you through the whole process, from contract through installation and maintenance.
Incentive Programs Boost Your Rewards
Today is an excellent time to go solar. Numerous state and local incentives entice homeowners to invest in a home solar system. For full information on solar financial incentives, visit the Database of State Incentives for Renewables and Efficiency (DSIRE).
Incentives help you save money on your total solar installation and increase your rate of return on investment. The federal solar tax credit reduces your federal income tax liability dollar for dollar. Currently, the residential federal solar tax credit provides a dollar-for-dollar tax credit equivalent to 26% of the ultimate cost of solar energy systems installed on your house. This perk is available until December 31, 2022. In 2023, the home tax credit will be reduced to 22%. The home solar tax credit expires in 2024.
These lower upfront expenses, along with the lower utility bills associated with a residential solar installation, make adopting solar now a good option.
The Time Has Come to Go Solar
Solar panels and battery storage will reduce your power cost. In general, the quantity is determined by a few variables. The key criteria are the size of your solar system, the presence of battery storage, the quantity of energy consumed, and the cost of electricity.
In the grand scheme of things, your electric bill with a home solar system is determined by your energy consumption requirements and your energy production objectives. A well planned solar installation can enable you to significantly reduce your monthly expenditures.
And, as power costs continue to climb, this financial incentive will only get stronger. You’ll notice that investing in solar panels pays off throughout the course of your system’s life… tens of thousands of dollars that would have flown through the window otherwise.
Feel good about helping a sustainable, clean environment after installing solar by comparing your prior year’s power bill to your new “solar panel bill” for the same month. Soon, you’ll only need to glance to know how much power your solar panels generate and how much electricity your home consumes.
Sunrun can assist you in becoming aware about the impact solar panels will have on your power cost. Additionally, we’ll guarantee that you have sufficient information to ensure that you’re on the proper track toward energy security.
Put aside financial concerns about power costs. You have power over your home’s energy. Thousands of Americans are harnessing the sun’s bounty and achieving energy independence.
You have the ability to alter the way you power your life. The moment has come to pursue your goals of lower utility costs, better peace of mind, and a smaller carbon footprint.