Understanding the cost implications of a home solar system — even before making the firm decision to go solar — is crucial for a few reasons.

Firstly, it provides a benchmark to help identify scams or unrealistically low solar quotes. Secondly, it prepares you for the investment required, mitigating the impact of the initial expense.

Payment on a Monthly Basis

If you choose financing, the monthly payment accounts for your loan payment over a 20-year loan period.

Your actual loan payments can fluctuate based on prevailing interest rates. Also, note that solar loan terms can range anywhere between 5 to 25 years.

To calculate your actual monthly savings with solar panels, simply deduct your post-solar payment from the pre-solar payment to get an idea of your potential monthly savings.

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Reduction in Bill

This value signifies the portion of your utility bill that you're likely to counterbalance in the first year of installing solar panels.

If your loan payments exceed your average utility bill, your bill reduction will display as zero. However, that doesn't imply that you won't save money over time by switching to solar.

Lifetime Energy Cost

For cash purchases, this is fundamentally the estimated cost of your solar system and any flat fees your system can't offset.

For a 20-year loan, this is a mix of the system's cost, flat fees, and interest payments.

Lifetime Savings

This is the disparity between the lifetime energy cost before solar and after solar. This is considerably higher for cash purchases because there aren't any interest payments.

Average Electricity Rate

Before solar, this represents the average utility rate over the next 20 years, assuming annual rate increases between 3-5% (dependent on location).

After solar, this is essentially your lifetime energy cost divided by your system's total output.

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Do Solar Panels Truly Result in Savings?

The idea of spending around $25,000 to save on electricity costs may seem counterintuitive, but people genuinely save money with solar panels.

Envision going solar as buying 25+ years of electricity at a wholesale rate. You're not only getting it at a discounted rate, but solar power also stabilizes your electricity costs while utility electricity costs fluctuate and incrementally rise over time.

In many aspects, the decision to go solar mirrors buying a home. Initially, a mortgage might seem pricier than renting. However, it becomes the more economical option over time as rental rates increase while your mortgage payments remain constant.

Why is a Solar Cost Calculator Beneficial?

We believe that understanding the average cost of solar panels enables homeowners to make more informed decisions when they start comparing solar quotes seriously.

Utilizing the calculator can be likened to checking the Kelly Blue Book value of a vehicle you intend to purchase. Having a basic understanding of solar panel costs can help you avoid scams, alleviate the shock of initial costs, and give you a head start on saving money.

Download Our Free Guide Or Speak with One of Our Solar Experts Now, Call (845) 262-4480 ☀️