How Much Can You Really Save with Solar?
Switching to solar energy is one of the most effective ways to reduce your long-term household expenses while contributing to environmental sustainability. However, the exact amount you save depends on several critical variables including your geographic location, your current energy consumption, and the efficiency of your hardware.
Understanding the Calculation
Our solar savings calculator uses a standard industry formula to estimate your potential offset. Here is how the math works:
- Daily Production: We multiply your System Size (kW) by the average Sunlight Hours.
- Monthly Production: The daily production is multiplied by 30.4 days.
- Monetary Savings: We multiply the monthly kWh produced by your local Electricity Rate.
Example Scenario
If you have a 6kW system in a region that gets 5 hours of direct sunlight daily, your system generates roughly 30kWh per day. Over a month, that is 912kWh. If your utility company charges $0.15 per kWh, you are generating $136.80 worth of electricity every month.
Factors That Influence Your ROI
While the calculator provides a strong baseline, remember that "net metering" policies vary by state. Net metering allows you to send excess energy back to the grid for a credit. Furthermore, the angle of your roof, the presence of shade from trees or nearby buildings, and the age of your solar panels can all impact the actual efficiency of your system.