Everything to Know About Solar Offset

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Solar offset is pretty straight forward while also being a very important aspect in the solar process. Your solar offset helps you know how much energy you’re actually using from what your solar panels system is generating. How can you find out your solar offset number? Let’s go over it together.

You can calculate your solar offset by dividing the amount of electricity your solar system produced over the span of a year by the total amount of energy you actually consumed in your home expressed as a percentage. It is ideal to have a production percentage that is equal or greater than your consumption percentage. Here is an example of this:

Your system produced 18,200 kilowatt-hours of electricity (Your solar production)

You used 20,400 kilowatt-hours of electricity (Your energy consumption)

Your solar offset would be 89%

It’s important to know that your solar system offset doesn’t necessarily determine how much the local utility company deducts from your buyback credit that you have accumulated from your excess generated solar energy being pushed back into the grid. The buyback rate and process varies from state to state and with different utility companies.  Having a 100% offset rate doesn’t always mean you won’t have to pay the utility company. There are still connection fees with your local utility company if you choose to have a grid tied system.

What is the benefit to less than 100% offset?

Not many people actually have the resources to offset their electricity expenses 100%. In fact most people only offset their energy expenses by 50-70%. Many others only see a 20-40% offset on their electricity. Why go solar if you’re still going to have to pay electricity fees? The benefit is better than you think!

Even though you’ll still have some fees, your benefits greatly outweigh the costs. These include

  • Fixed lower monthly payment
  • Less panels to finance
  • Utilizing renewable energy

Fixed Lower Monthly Payment

Even if your solar offset isn’t 100% you can still save money on your power expenses every month. When you switch to solar energy you get a fixed monthly payment that is lower than your current electricity bill. Your local utility company charges more for electricity at peak usage hours, like evenings when everyone is cooking dinner,  than they do in the middle of the night. This leads you to pay a different amount month to month. Solar gives you power over your energy bill. With minimal connection fees and your solar panels generating a good amount of power for your home you’ll see your savings quickly. There are also many incentive programs that benefit you when you go solar! With these types of programs you are essentially getting paid to produce electricity and helping society pivot away from dependence on fossil fuels!

Less Panels To Finance

One of the biggest reasons for your solar system not being able to offset your entire electricity bill 100% is having a small system set up. Your roof may have a myriad of reasons why your solar panel system has to be fitted to a smaller section of roof. If part of your roof is shaded by trees then your panels will probably only be placed on the unshaded part. Vents or skylights on your roof are also obstacles that may lead to you having a smaller panel system. Having less panels to finance is a good way to save money. Remember any amount of solar produced by your panel system can save you money, no matter the size!

Utilizing Renewable Energy

When you utilize the clean, renewable, solar energy that your solar panels generate you’re not just saving money, you’re saving the planet! Solar benefits you and the environment. As you produce and consume solar energy it decreases your carbon footprint, leading to cleaner air. Again, no matter your solar panel system size, any amount of solar helps reduce the strain on the power grid. Your panels can give you clean, renewable energy from the sun for decades.

Whatever your solar offset may be, solar energy gives you the power to dictate what happens with your electricity. To learn more, talk to one of our solar experts today!

Qualified customers can switch to solar with no money down and no payments until after your system is installed. Give one of our solar experts a call today at +1.888.586.4649

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Alex kelleher

Public Relations Associate

Alex is a recent BYU grad with a degree in communications with a public relations emphasis. Alex is an average pickleball player and water skier and enjoys spending her time in the sun.