We’ve been hearing about how much money and resources solar energy can save for a long time now. A lot of numbers get thrown around on the national scale and in government buildings, but you rarely hear specifics about how much solar energy can benefit the average homeowner. Considering that average homeowners are the ones with the most power to implement solar energy on a wide scale, we feel that this lack of information is a major oversight. With that in mind, let’s examine how much money solar energy can save you if utilized in your home.
Operating Cost Savings
As you are well aware, each home has an operating cost, which is comprised of the total cost of things like electricity, plumbing, and all other utilities that are required for the home to function. Electricity is usually the most expensive of these utilities, as it is used for so many different things in the home. Electricity also happens to be the area that solar energy is designed to supply, making it one of the most cost-efficient improvements that you can make to your home.
This cost efficiency is illustrated by comparing the inflation rates of the two resources. Solar energy is free and renewable, as long as you have the equipment installed which can make use of it. Electricity, on the other hand, costs money to produce and deliver. According to a recent study from the Edison Electric Institute, the price of electricity rose around 2.5% each year between the years of 2000 and 2006. That’s a significant jump in price, which only increases the value that solar energy provides by saving you a percentage of your electricity bill.
The average home consumes around 900 kilowatt hours per month. That’s the total power consumed by all the different electricity-using devices in your home. An average solar system, assuming that it is receiving an average amount of sunlight, can provide approximately 450 kilowatt hours per month. That’s around half of your total electricity bill, which will only increase in value as the cost of electricity rises. So you see, a solar energy system can save you a great deal of money, and will pay for itself in fairly short order.