Switching to Solar:
How to Evaluate
Your Total Savings
Solar is at the forefront of the renewable industry as the most common way for homeowners to take advantage of the technology available to them.
by Alex Kelleher
5 min read - Published on 05/10/2022
Society is quickly adopting and accepting the technology for solar energy as they understand the value that comes from owning your own, clean source of power.
While every homeowner has their own reasons for making the switch to solar, all benefit from the savings that are associated. Wondering if solar actually makes a difference in your budget? You’re in the right place. Let’s dive into the comparison between your power bill and your solar bill.
You know the feeling of opening up that email or envelope each month and seeing how much you owe the power company. Or maybe you don’t because you’ve learned over the years to just expect a high bill. Either way, the bill comes and you pay it so your power doesn’t get shut off.
Then, with technological advances, every new device, appliance, or electric vehicle added to your home increases your energy usage and makes your bill even more expensive. And the cherry on top is the constant rate hikes and fees thrown your way by the power company.
You get the point: energy is expensive and only getting more so. The good news is that it doesn’t have to be. Say goodbye to rate increases and hello to fixed payments. And it gets better—when your system is paid off, your bill will most likely be nonexistent.
Your monthly solar bill can replace your power bill entirely, or at the very least decrease it to a nominal payment. When you finance your switch to solar with a loan, the money you used to pay your power bill now goes toward your loan payment for your system. The energy that is produced will provide you with the energy you need to power your home. Any excess power will either get stored in your battery or, if you choose to forgo a battery backup, will be shared with your neighbors for a credit towards any power you may need to pull from the grid. This is called net metering and may vary by state.
Depending on if and how much energy you end up needing from the grid throughout the month, you may still end up with a small power bill. However, the credits you earn from selling your excess power to the utility company will go towards your power bill, shrinking it even more.
Think of it this way: if your monthly solar payment is $100, your power bill is $50 for the energy you pulled from the grid, but you have $40 in credits for the power you provided the grid, you will end up paying $110 that month for electricity. That’s a steal compared to the $200+ you used to pay.
While this is just an example, most solar owners save over $100 every month. To find out exactly how much you can save, get a custom quote that breaks down what your monthly cost will be with solar.
Once you get that custom solar quote, it will be easy to compare the cost of solar with your current power bill. It will also show you how much energy your system will produce and if it’s expected to be enough for your home or if you will need to supplement with energy from the utility company.
You can calculate how much you will need to pull from the utility company by subtracting your system’s energy output with your energy usage (found on your utility bills). Take the difference in energy and multiply it by your utility company’s costs to determine how much you should expect to pay the utility company.
Adding up your new utility bill and your solar bill can then be easily compared with your old utility bill to determine your monthly savings. But don’t take our word for it. Get the quote today and check the math for yourself.
Other Financing Options
While the most common financing option is a solar loan, it’s not your only choice. The financing option you choose can affect your savings. For example, if you choose to pay in cash, you will never have a monthly solar payment and will forgo the interest that is included with any loan, creating more savings and eliminating a bill entirely. However, many people are unwilling or unable to pay the cost upfront.
Is Solar Right For You?
Only you can decide if switching to solar is the best choice for you and your family, but understanding all the aspects of solar can help you make an informed decision. Recognizing the monthly savings you will see from solar can be the push you need to make the switch.
With the cost of coal-fired power increasing, switching to a solar payment instead of a power bill gives you a fixed, lower monthly payment, saving you thousands of dollars across the life of your system. The average solar customer can save over $100 every month on their bill, totaling over $30,000 over 25 years.
And that’s just savings on your monthly bill. Find out other ways you can take advantage of the financial benefits of solar here.
Switching to solar is a big investment. Get in touch with one of Lumio’s solar experts today to get all the details you need to make an informed decision. With the free custom quote you’ll receive after talking to someone on our team, you can determine how much you’ll save every month by friendzoning your power company.