Are you wondering how you can save money on your utility bill with solar power?
The average American family spends $2,060 per year on their utility bills. Of course, the amount you paid depends on your location, the kind of home you live in, the climate of your area, and how much you use in utilities monthly. However, every American can agree the expense of paying monthly utilities can add up, making it hard to get by.
One of the best ways to save money on your utility bill is by using solar power. Within this blog post, you will learn the benefits of using solar power and how it can help you save money.
What Are Utilities?
There are six categories of utilities:
- Heating and cooling
- Electricity or gas
- Trash and recycling
- Landline phone
- Internet and cable
When you’re moving into a new place or renting, you may not have the option to switch to solar energy. If you would like to have the option, it’s important to discuss this more with the landlord. If you’re a new homeowner who wants to save before risking the chance of losing money, read more about Solar Edge Pros to find out how we can help you.
What Impacts the Cost of Utility Bills?
Before we dive into solar power and how it can help you save money, let’s discuss utility bills. The following factors below often affect how much you will pay monthly in your utility bills.
The Location of Your Home
Your climate will affect your electricity bills. For example, it costs more to keep a home cooler during the summer months in the south than it does up north.
How Much Resources You Use
The amount you pay on your utility bill depends on your use of electricity and gas. To lower the cost within this area, try using less electricity and gas within your home.
How Efficient Your Home Is
Energy can easily escape a home that’s not properly insulated. Also having old outdated windows can contribute to heating and cooling loss. How insulated your home is can make a big difference in how much you pay for utilities each month.
How Big or Small Your Home Is
Usage will be different for a home that’s 2,500 square feet than a home half that size. A bigger home will typically use more energy.
What Is Solar Power?
Now onto solar power and how you can save money by using it. First, let’s begin by discussing what solar power is and how it is commonly used.
Solar power is the storage and conversion of solar-generated electric or thermal power into usable power. There are several ways that solar energy can be captured, but the most common method is through photovoltaic solar panels that convert sunlight into electricity.
Solar energy is useful in a variety of thermal applications. Building owners can utilize solar technology to fully harness the power of the sun by installing solar water heating systems and incorporating passive solar heating designs into their buildings.
How Does Solar Energy Work?
Let’s begin by discussing what solar panels are made of to learn how solar energy works. The material that makes up solar panels is silicon, which is a non-metal and conductive property that can absorb sunlight and convert it into electricity.
Solar panels are composed of silicon cells, metal frames, glass casings, and wiring used to transmit electricity from the silicon. The light that hits a silicon cell sets electrons in motion to cause an electric current to flow.
In technical terms, a solar panel’s “photovoltaic effect” describes its operation.
Photovoltaic energy is generated through these steps:
- During solar radiation absorption, silicon photovoltaic cells generate power.
- As a result of the sun’s rays interacting with the silicon cell, electrons begin to move, causing a flow of electric current.
- Through wires, this direct current electricity is collected and fed to a solar inverter, where it is then converted to alternating current electricity.
This process was discovered in 1839 by Edmond Becquerel and further develop in 1954 in the Bells Labs. Within the Bells Labs, the first silicon photovoltaic cell was developed, allowing solar power to become a viable source of electricity to power devices over extended periods of time.
Solar Energy Cost: What Should You Expect
Although installing solar panels upland may ultimately save money, you shouldn’t be surprised to see a lot of up-front costs.
The average installation cost of a solar panel is approximately $12,000 in the United States after federal tax incentives. You will also have to include the labor, operational costs, and additional equipment.
So, in the beginning, the cost of solar energy can be costly. However, in the long run, you will save money with solar power.
How Can Solar Energy Help You Save Money
The upfront cost may keep you from deciding to switch your energy to solar power. You should know the upfront costs will be covered due to the money you save with the solar panels.
Below is how solar energy can help you save money:
- Using solar panels, you can save up to 100% on your electric bill since you will no longer be dependent on your local utility company.
- You may have experienced issues with your local utility company and had to pay out of pocket for repairs or maintenance. Solar panels are rarely in need of repairs or maintenance after they are installed. If there is a problem, many solar panel companies offer a warranty.
- You may be eligible for a tax credit in some states when you choose to install solar panels. In Texas, for example, TXU Energy Renewable Buy Plan is available. Even if your state doesn’t provide these credits, the federal government will pay 26% of the installation cost of solar panels.
As you can see, solar power may be worth the risk despite its installation costs.
Other Ways to Save Money on Your Utility Bill
In 2019, the average price of heating and cooling a US home was about $115.49 per month, based on US Energy Information Administration data. Almost half of Americans’ paychecks go towards utility bills, so the best way to reduce this is to conserve energy as much as possible.
Along with switching to solar power, you can take these steps below to save money on your utility bills:
- Install smart thermostats
- Replace your light bulbs with energy-efficient ones
- Do not leave electronics plugged in when not in use
- Make your curtains more energy efficient by replacing them with insulated ones
- Invest in a new water heater if yours is more than ten years old
- Every three months, change the filter in your furnace
- When bathing, brushing your teeth, or cleaning dishes, use less water
Make sure you take these steps to reduce costs and save money if your monthly bills are getting too high.
The Ultimate Way to Save Money Is by Switching to Solar Power
A solar power system can lower your utility bill by 75% depending on where you live and how much energy you use.
If you’re ready to save money on your bills, then contact Solar Edge Pros today!