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How to save money on your utility bill?

Author: William Klink
by William Klink
Posted: Jun 18, 2018

We all love saving doesn’t matter they big or small. According to a research from the E.E.I, electricity prices went up 2.5% annually from 2010 to 2018 and are following a solid uphill trend. That increasing cost is being driven in part by the rising cost of fuels and natural gas. As cost continue to go up, so will your electricity bill.

With so many investment opportunities available in today’s market, it’s easy to be doubtful of new products that brag promises of "saving you thousands of dollars." Solar panels are no different – saving money by reducing your electric bill is one of the unique selling points for Solar Panel Installation Companies.

Now you must be asking yourself "do solar panels really save you money?" and the answer is yes.

Now your next question might be " How much do solar panels really save on electricity bills?" for this first you need to calculate how much you are currently spending on utility every year. For example, the average annual electricity use required for a U.S. household is 11,000 kilowatt-hours (kWh). Multiply that by the national average electricity rate as of September 2016 ($0.1287 per kWh) and you’ll find that the typical American family is spending over $1,400 a year on electricity alone. Then, you have to consider the volatile nature of electricity prices and determine what utility rates will be in years to come. When you compare the cost of utility electricity with home solar, you should keep in mind that you can expect electricity rates to increase annually. Utility rate inflation is an added incentive for solar: when you generate your own energy with a rooftop PV system, you’re taking control of energy costs so that you are no longer victim to variable utility rates.

To provide a snapshot for typical bill savings from a solar installation, the following table offers state-by-state data for 20-year savings estimates with solar:

  • System size: 5 kilowatts (the national average)
  • Electricity demand: 11,000 kilowatt-hours per year (the national average)
  • Utility rate inflation: 2.2%
  • Percent needs to be met by solar panels: 84%
  • Electricity rate: State average as of September 2016 (according to EIA)
  • Ownership of the solar panels is assumed,
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Author: William Klink

William Klink

Member since: Jun 18, 2018
Published articles: 1

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