In today’s post, we wanted to help you conceptualize how these financial benefits actually work in the real world.
We’ll be using hypothetical figures – nice round numbers to make the math a little easier to digest. But rest assured that these figures closely reflect what many of our own customers truly experience once they go solar.
The Mathematics Behind Your San Diego Solar Panels
We’ll start this exercise with the assumption that you currently pay $200/month for grid electricity. This estimate may sound high, but with utility price hikes of 12% to 30% in any given year, you’re not as far away from paying $200 as you might believe.
Next, we’ll assume that you buy a standard residential solar installation. Based on our experience, the average cost of such an installation is about $10K after factoring in all relevant incentives.
We’ll also assume that these panels allow you to reduce your monthly utility bill by $175. This means that every month, you enjoy $175 in savings.
At the end of each calendar year, those savings add up to $2,100.
After 5 years, you’ve saved $10,500. And this assumes that utility rates haven’t gone up. If rates increase, your monthly utility bill savings will also increase.
So after 5 years, you’ve saved $10,500 for an installation that initially cost you $10,000.
You’ve more than covered all of your installation expenses. Every year after that is pure savings. Just clean, free energy for the next 20 to 35 years.
But What About Expiring Incentives?
Although these numbers are based on assumptions, the basic math still holds up – especially in a sun-blessed region like San Diego.
But what about expiring incentives. Many solar rebates are winding down. Net metering could undergo dramatic revisions in the next several months. How much do these changes affect the underlying economics of a solar installation?
The answer may surprise you.
While it’s true that incentives can shorten the payback period of a new installation, solar is a technology that pays for itself – even in the absence of government support. This is especially true as solar panel prices continue to fall while grid electricity prices continue to skyrocket.
In other words, going solar is a wise investment – no what. As long as the sun is shining, there are savings to be had. Sometimes huge savings.
To learn more, contact us today for a free consultation.