Solar power generation is on the rise as many are joining the clean energy revolution which saves not only the planet but their wallet. Whether customers are on the fence to get solar or already have a solar energy system in place, it can be hard to know if investing in solar is really going to save you money. So, do solar panels save money? In addition, are you getting the savings that were truly estimated?
Financial returns and lower monthly utility bills are major incentives for going solar. After the installation of solar, customers will see an immediate drop in their electricity bill especially if they live in areas with high utility rates. They do not have to wait years to see the return on their investment. It is worthwhile to install solar panels while the tax break is in place. This is because the cost of installing solar panels has improved, while prices of energy have not.
But will those initial costs of installation be outweighed by the estimated utility savings? It is all about mindset if the customer is thinking of long or short term savings. National energy statistics indicate, to date, the average payback period (when savings outweigh initial costs) for the installation of a residential solar system is about five years in the US.
Short-term savings also depend on the electricity bill the customer had before going solar. Garrett Nilsen, deputy director for the U.S. The Department of Energy’s solar energy technologies office states “If a utility’s electricity prices fluctuate, so could the amount of savings… similarly, if energy consumption changes, the amount of savings can also vary.“
Using a tool that leverages the latest utility rate data and actual energy consumption to calculate solar savings is a step towards tracking live savings. One can track Utility Savings with the Solar Savings Graph on the ENACT Engage App. Additional features include system performance analytics, and a solar and storage power flow display. It gives customers a visual representation of estimated vs. actual utility bill savings and generation.
By installing solar and creating energy, customers will reduce utility bills and repay their investment over time. Tracking their energy savings in comparison to their utility bill before solar is where they will see an immediate return in their investment. The solar process can be confusing but it doesn’t have to be. Visit www.engage.solar to learn more about how to get started.
Author: Angelica Cornejo,
Communications Intern for ENACT Systems Inc.