Switching to solar is a great way to save money. But how much can you really save by making the switch?
Studies show that the average homeowner saves $30,000 to $60,000 over the lifetime of their solar panel system by switching to solar. However, many homeowners save even more.
Keep reading to discover everything you need to know about the cost savings of switching to solar.
The Average American Spends Around $1,500 Per Year on Electricity
As of March 2021, the average cost of electricity nationwide is around 13.29 cents per kilowatt hour (or $0.1329 per kWh), according to the United States Energy Information Administration.
The average household in the United States uses approximately 10,764 kilowatt hours per year of electricity. When you multiply these two numbers, you get average spending of $1,430.54 per year on electricity.
If you have a larger home, live in a hot or cold climate, or have greater electricity needs than the average American, then you could easily spend over $2,000 per year on electricity.
Electricity rates also vary widely across the country. Homeowners in New England, for example, pay an average of $0.2170 per kilowatt hour for electricity, nearly twice the national average. California and Alaska pay even higher rates for electricity, with average rates of 22.71 and 21.90, respectively. Hawaiian has the costliest electricity in the United States, with homeowners paying around $0.3297 per kilowatt hour, on average.
The more you spend on electricity, the more you can save by switching to solar. Similarly, homeowners in sunnier climates could save even more.
Factors that Impact the Cost Savings of Solar Panels
Homeowners in some states save over $60,000 by switching to solar. Homeowners in other states save less than $20,000 by making the switch.
Multiple factors impact the cost savings of solar panels, including:
- The size of your roof and solar panels
- Your location and the average annual sunlight hitting your solar panels
- The average cost of electricity per kilowatt hour in your state
- Your electricity usage
- The average cost of installing solar panels in your area
The Average Homeowner Saves $30,000 to $60,000 by Switching to Solar
Nationwide, the average homeowners saves between $30,000 and $60,000 by making the switch to solar. These calculations include the cost of electricity, the cost of installing and maintaining your solar panels, and all other costs associated with solar panels.
State-specific factors can change your cost savings dramatically.
If you live in a sunny place with high electricity costs, then you could save over $60,000 by switching to solar. If you live in a place with less sunlight and cheap electricity costs, then you’ll save less.
The average homeowner in Sacramento, California, for example, can save over $66,000 by making the switch to solar. Sacramento has high electricity costs and a sunny climate, making it ideal for maximizing cost savings. Other cities in California have similar cost savings. San Diego, which is one of the sunniest major cities in America, is one of the best cities for solar panels, with the average homeowner saving over $80,000 per year by switching to solar.
The average homeowner in Washington, D.C., meanwhile will save around $35,000 by switching to solar. Washington has an average number of sunny hours per year and average electrical costs.
No matter where you are located in the United States, you could save tens of thousands of dollars by making the switch to solar panels. Virtually every homeowner saves money by switching to solar – but some save more than others.
Switching to solar panels is a great way to save money.
Before making the switch, many homeowners wonder how much do you save with solar panels. Studies show you can easily save over $30,000 by making the switch to solar. Depending on the cost of electricity and the durability of your system, you could save even more by switching to solar.