How Much Energy Can Solar Power Really Save You?

If you read our blogs, you know that solar power energy has many benefits. However, we realize that understanding just how much energy solar power systems can save you can be rather difficult to comprehend without seeing the numbers. Therefore, in this blog, we will break down the numbers to better understand exactly how much energy you can save with solar systems. Let’s dive into the math and break down the savings potential of solar energy.

The renewable energy source that solar power offers can reduce both carbon emissions and cut down your energy bills. The amount of energy you save, however, can vary depending on various factors. These include:

  1. System Size: The size of the solar power system will determine how much electricity it can create. Larger systems often produce more electricity, leading to bigger savings.
  2. Sunlight Availability: Every building receives different amounts of sunlights, and this affects how much energy you can save and how much electricity you produce. The more sunlight you have, the greater the savings.
  3. Electricity Usage: Having an understanding of your current electricity consumption can help you to better comprehend how much you can save and what the right system is for you. If you were previously using a lot of electricity, you will save more with solar power energy. 
  4. Local Electricity Rates: It is also important to note that electricity rates vary depending on your location. If you have higher rates in your area, you will save even more when  you switch to solar power energy. 

Let’s breakdown the numbers with a hypothetical scenario:

The home in this scenario will be average sized and located in a Suburban area with a lot of sunlight. Let’s imagine that the homeowners use a monthly average of 1,000 Kilowatt-hours (kWh) a month. Now, let’s say that the current electricity rate is $0.12 per kWh, and that the solar system size is 5 kilowatts (kW). 

If we look at the math, and multiply 1,000 kWh by 12 to see the yearly electricity consumption, then we wind up with 12,000 kWh per year. 

Now, let’s determine the solar electricity generation. If the home was to receive 5 hours of sunlight per day (5 kWh), and we multiply that by 365 days to get the annual consumption, we wind up with about 9,125 kWh per year. 

Now, let’s calculate the solar energy offset by subtracting the annual consumption from the solar electricity generation. So, if we take 9,125 kWh and subtract 12,000 kWh, we wind up with a negative number of  -2,875 kWh per year. This negative value actually indicates a surplus of solar energy generated. 

Now, we can estimate the savings that solar power will offer by multiplying the electricity rate by the solar energy offset. So, if we take -2,875 kWh per year and multiply it by $0.12/kWh, we will wind up with -$345 per year. Since we have a negative value, we can actually see that annual savings here. This is because the solar system is generating more in this scenario than the household uses. This can be sold back to the grid. As you can see, the up front investment in solar power energy can save you money in the long run. 

Do you want to learn more about how much you might save with solar power energy? You can meet with us for a free consultation and we can do the math together to give you a number ahead of time. You have nothing to lose! Call us today so we can get started! 

Hear From an Expert

Send us a message!


Let’s Begin your next Exteriors Project

C3 American Exteriors is dedicated to delivering high performance, long lasting exterior solutions. Our roof, gutter, siding, windows, doors, and more exterior home improvements ensure that your greatest investment – your home – will continue to appreciate in value.