If you are considering installing solar panels to reduce your electricity bills, there are a few factors that come into play when determining how much money you will save and the cost of powering your residence with home solar.

Installing solar panels on your home currently comes with a 30% federal tax credit, meaning is becoming more enticing to many homeowners, but what is the actual cost of installation and powering your home with solar?

Areas like Middletown NY have adopted solar at a very fast rate. Utility companies in New York state have seen a heavy increase in energy costs and the cost to supply energy across the grid. Many Middletown NY solar companies have aligned their marketing and value propositions with recent demands and increases in Federal tax incentives.

How Many Solar Panels Will You Need?

A typical home that uses around 30kW of electricity per day looking to eliminate its bill will need approximately 30 panels installed. Each panel can produce 1kW in optimum conditions. However, if you are looking to offset some of the cost of your electricity bill, you can reduce the number of panels installed.

In the US, the average home is around 1,500 ft, and the average electricity consumption is 11kWh (kilowatt-hours)

A typical installation cost in the US after tax breaks is $12,000, but not all solar panels are made the same, and the price can vary depending on the state and the quality of the panels you use. Smaller roof spaces can require you to install better quality panels due to the limited number of panels your roof can accommodate.

It is not all solar panels that are the same. Monocrystalline and polycrystalline solar panels are the most common solar panels used to power homes out of the three types of solar panels available. Monocrystalline panels are typically more efficient than polycrystalline panels, but they are also more expensive. Depending on how much roof space you have, you may need to invest in more efficient (and therefore more expensive) solar panels.

How Much Can I Save with Solar Panels?

Energy prices in the US can be volatile, so you need to know your average kWh usage per year before doing any other calculations. You can find this information on your bills, and to get average use, you should add up each figure per month and then divide that by 12. Then divide that number by 30 to get the daily use. Average households need 867kWh per year of energy.

The savings you benefit from solar leads generation will get more efficient as time goes on with the way you treat and respect energy. When installing solar panels will depend on the upfront cost you pay and the amount of electricity you use and generate. Potentially, you could see your energy bill cut by 75% or even 100% if you can install enough panels and live in sunnier states such as California where this could generate savings of up to $90,000 over 20 years.

On average, Americans can pay between $100 and $200 per month for electricity. From here, it can take anywhere between seven and 15 years to break even, but with the 30% tax break, most Americans break even with a lead time of seven years. You will still receive an electricity bill from your provider for any electricity used outside of what your home generates but this will be reduced depending on your output. Even if you generate 100% of your bill, you will still receive a bill showing net metering credits instead of asking for a payment.

There is a lot to think about when looking at solar power for homes. If you are considering this option, it is the best time to take advantage of tax breaks and various state incentives to reduce the cost of installation and start lowering your energy bills.