How to Reduce Your Utility Bills with Solar Energy

Your electricity bill is a reflection of how much energy your home uses. Sudden spikes in your bill could be the result of inflation, extra use during peak periods, inefficient energy use by outdated appliances, or even a change in your daily usage patterns. With so many variables impacting your utility bill, it’s almost impossible to predict how much you’ll pay in the long run. 

Understanding Utility Bills and Energy Consumption

Utility bills are calculated based on the amount of energy you use in kilowatt-hours (kWh). While some companies stick to flat-rate billing models, others may charge time-of-use (TOU) rates which can cause energy costs to fluctuate. Prices may be a bit higher during peak hours and lower in off-peak hours. 

Peak hours are usually on weekdays from 6 AM to 10 AM and from 4 PM to 9 PM since that’s when the grid is under the most strain. Since most people are either getting ready for work or coming home from work, utility companies see an increased demand for energy during this time. Off-peak times are typically from 10 AM to 4 PM and 9 PM to 6 AM since most people are either asleep or away from home. 

Peak usage hours may change seasonally to reflect differing routines. In the summer, for example, peak hours may be extended because children are staying home and using more energy. 

While making small changes–like turning off the lights when leaving a room or switching to energy efficient bulbs–can help reduce energy use, using outdated home appliances or poor home insulation could also cause your utility bills to spike. Older appliances weren’t made with the latest energy efficient methods in mind. Parts can also wear down over time which can negatively affect the appliance’s performance. 

Let’s say you have an outdated refrigerator. When the seal around the door weakens, cold air can escape the fridge. This causes the refrigerator to work harder than it should without being more efficient. In fact, you’re wasting energy and being charged for something you didn’t actually use. 

Making small energy-saving habits can be a good start to reducing your bills. If you’re looking for even greater long-term savings, you’ll need a larger solution. Switching to solar energy can help. 

The Financial Benefits of Solar Energy

What you probably didn’t know is that your savings can start before your panel is even installed. Using federal incentives like the Investment Tax Credit (ITC) can reduce your solar energy system installation costs by 30%. Combining this with other state and local rebates can also help offset the initial costs of going solar. 

Relying on solar energy and solar batteries can reduce, or even eliminate, your reliance on a shared utility grid since they generate their own electricity. Any excess energy can be sold back to the grid through net metering programs or solar renewable energy certificates (SRECs) for credits toward your monthly bill. Between earning credits for extra energy and reducing how much you pull from the grid, over the lifetime of your solar panel system, you could save thousands on your electricity bills. 

Traditional electricity rates may change based on inflation, demands, and changing market conditions. By switching to solar energy, you can protect yourself from surging bills and an unreliable connection. Solar energy can keep your home powered regardless of what happens to the grid and ensure your monthly bills remain manageable for decades to come.

Sustainability and Environmental Impact

While saving money each month is definitely a bonus, the environmental impact of going solar can be beneficial for many generations to come. Since going solar lets you generate electricity using sunlight, you’re combating climate change, creating a healthier environment, and reducing your home’s reliance on fossil fuels. You’ll also be future-proofing your home’s energy supply from grid failures and fluctuating energy prices.

Increasing Home Value with Solar

Going solar can make your home a more attractive option to potential buyers. It can increase your home’s property value by as much as 6.8% and can reduce the time spent on the market by 13.3%. While rebates and tax incentives can offer temporary savings, the energy solar panels generate can offer savings for decades to come. Since most solar panels are made of around 80% recyclable materials, you’re also reducing potential environmental hazards and cutting down waste to conserve valuable natural resources. 

Maximizing Solar Savings Potential

To truly enjoy the savings your solar panels can provide, you should participate in net metering programs and SRECs. You should also be mindful of your:

• Roof’s compatibility with solar panels
• Home’s energy consumption

If your roof doesn’t have space for solar panels, your home may find a ground-mounted solar system is a better option. Determining your home’s daily energy usage can ensure you’re buying the right solar panels to keep your home powered..

Selling excess energy back to the grid through net metering programs can help you earn credits on your electricity bill, which can be a great way to earn significant savings over time. This can be huge if your system produces more energy than your home and solar batteries need over time. While net metering programs sell energy back to the grid, SRECs may allow the energy to be sold or traded on your behalf. 

By taking advantage of these programs and being conscious of your roof’s compatibility and daily energy usage, you can maximize the potential savings from your solar panels. And

Getting Started with Solar Energy

For the average home, solar panel systems cost around $15,000. This is a pretty big investment for any homeowner, but thankfully, there are plenty of payment options available to make going solar even more affordable. While loans may be your first thought, a Zero-Down Solar Power Purchase Agreement (PPA) lets you install solar panels at no upfront cost, but requires you to sell electricity produced at a lower, locked in rate. At Solar Energy World, we can apply for federal, state, and local tax incentives and grants on your behalf so you can focus on picking the right solar panel for your system. Book your FREE solar estimate today to determine whether your property is suited for a solar energy system.