How Solar Panels Impact Your Energy Bills

There are several major benefits that solar panels may have on properties and their owners, and one of these comes in the financial realm. Going solar makes your power consumption far more cost-efficient, especially over a long period of time, and can have an enormous impact on your bills - depending on the approach you take.

At Intermountain Wind & Solar, we happily offer the very best residential and commercial solar power services to clients around Boise, Idaho and Salt Lake City, Utah. We'll help you choose the ideal system, plus detail how your bills are likely to be impacted once it's installed. Here are a few important concepts to be aware of when it comes to how solar panels impact your energy bills.

Long-Term Approach is Best

As we alluded to above, it's important to view solar panel savings and cost factors over the long term. Investing in solar panels initially requires a cost, whether you purchase them outright or pay for them through financed options. However, after the initial cost, you'll become far more energy-efficient and financial savings will begin to accumulate over time.

This same theme holds for understanding the true impact of your system's cost savings. Just looking at one month's worth of energy bills may not tell the whole story. Instead, you need to compare year-over-year bills and look to see how cost savings accumulate with solar panels in place.

Key Factors: Output and Consumption

The goal of solar panel installation is to replace your reliance on the traditional power grid, and the degree to which you're able to do this depends entirely on two factors: output and consumption. Your solar panel system's output relies on its size and capacity, as well as the amount of sunlight it receives in its location. Consumption, however, is up to you - the more energy-efficient your property is, the more cost savings you can expect from your system over time.

So for instance, if you purchase a system with the capacity to produce 25 kilowatts of power, but your monthly energy consumption is only 20 kW, you'll see far less cost savings than if your consumption were 30 kW. Of course, it's also possible to increase system output with additional solar panels and other investments.

Seasonal Differences

Another important factor to consider is the seasonal differences in solar panel performance. While your system's output increases during the summer months when there's more natural sunlight, it will likely decrease during winter and other periods of heavy cloud coverage. It's also possible that you'll need additional energy from the traditional grid during these times, so it's important to understand how this affects your overall energy bills.

This is, once again, a reminder of why a long lens is important here. If you were to just look at your solar power output from a month like December or January, for instance, when the system's output is lower, it could be tough to understand its true impacts on your bills.

Price of Electricity Increases With Time

On top of everything else we've gone over here, it's vital to remember that electricity costs have historically increased over time - usually around 2-3% per year, in fact. And as your local energy provider increases prices, you'll end up saving more and more through solar panel installation.

This is just another way in which solar panels are a great investment for property owners looking to save money over the long term - especially when combined with energy-efficient habits and other strategies.

Powering Other Devices

Finally, as we see a major rise in products like electric vehicles and new home appliances, solar panels can be a great way to power them - without the need to purchase additional energy from the grid. This is a major advantage that shouldn't be underestimated and can give you even more cost savings in the long run.

In summary, solar panel installation has many potential benefits for property owners - especially when it comes to cost savings over time. It's important to look at factors like system output and consumption, seasonal differences in solar panel performance, the rising price of electricity, and the potential for powering other devices with your solar power. With these major elements in mind, you can be sure that you're making a sound financial decision when going solar.

For more here, or to learn about any of our solar panel solutions for clients around Boise and SLC, speak to the team at Intermountain Wind & Solar today.