Hey there! I'm a supplier of solar panels, and I often get asked by customers how they can calculate the savings from solar panels. Well, let me break it down for you in a simple way.
First things first, we need to understand the basic components of a solar - panel system. A typical solar - panel setup usually includes solar panels, an inverter, and a battery (especially for off - grid systems). For example, we have the Wind and Solar Hybrid Power Supply System, which combines the power of wind and solar, and the 8000W off Grid Solar Inverter Solar PV Inverter for Big House, which is great for larger homes. And if you're looking for a battery, our Solar Lead Acid Deep Cycle Battery 12V120ah for off - Grid System is a solid choice.
Factors Affecting Solar - Panel Savings
1. Energy Consumption
The first step in calculating your savings is to know how much electricity you use. You can find this information on your monthly electricity bills. Look for the kilowatt - hours (kWh) used. Let's say your household uses 1000 kWh per month. This is your baseline consumption.
2. Solar - Panel Output
The output of solar panels depends on several factors like the size of the panels, their efficiency, and the amount of sunlight they receive. On average, a single solar panel can produce around 250 - 400 watts per hour under ideal conditions. If you have a 30 - panel system, and each panel produces 300 watts per hour, your system can produce 9000 watts or 9 kilowatts per hour.
However, sunlight isn't constant throughout the day. You need to consider the average number of sunlight hours in your area. For instance, if your area gets an average of 5 sunlight hours per day, your 9 - kilowatt system can produce 9kW x 5 hours = 45 kWh per day. In a month (assuming 30 days), it can produce 45 kWh x 30 = 1350 kWh.
3. Electricity Rates
Your local electricity rates play a huge role in determining your savings. If your utility company charges $0.15 per kWh, and your solar panels produce 1350 kWh per month, the value of the electricity your solar panels generate is 1350 kWh x $0.15 = $202.5 per month.
Calculating Net Savings
On - Grid Systems
For on - grid systems, you can often sell excess electricity back to the grid through a process called net metering. Let's say your household uses 1000 kWh per month, and your solar panels produce 1350 kWh. You have 1350 kWh - 1000 kWh = 350 kWh of excess electricity.
If your utility company pays you $0.10 per kWh for the excess electricity, you'll earn 350 kWh x $0.10 = $35 per month from selling the excess.
Your monthly savings would be the value of the electricity your solar panels generate for your own use plus the money you earn from selling the excess. The value of the electricity for your own use is 1000 kWh x $0.15 = $150, and with the $35 from selling the excess, your total monthly savings are $150 + $35 = $185.
Off - Grid Systems
In an off - grid system, you don't have the option of selling excess electricity to the grid. But you save on the cost of not having to buy electricity from the utility company. If your solar - panel system can meet your entire 1000 - kWh monthly demand, and the electricity rate is $0.15 per kWh, your monthly savings are simply 1000 kWh x $0.15 = $150.
Upfront Costs and Payback Period
Upfront Costs
The cost of a solar - panel system includes the cost of the panels, inverter, battery (if applicable), installation, and any permits. A small residential solar - panel system can cost anywhere from $5000 to $20,000, depending on the size and components.
Payback Period
The payback period is the time it takes for your savings to cover the upfront cost of the solar - panel system. Let's say your solar - panel system costs $10,000, and your monthly savings are $150. To find the payback period in months, divide the total cost by the monthly savings: $10,000 / $150 ≈ 67 months or about 5.6 years.
Other Savings and Incentives
Tax Credits
Many governments offer tax credits for installing solar - panel systems. For example, in some places, you can get a 30% tax credit on the cost of your solar - panel system. If your system costs $10,000, you can save $10,000 x 0.3 = $3000 on your taxes.
Rebates
Some utility companies or local governments offer rebates for solar - panel installations. These can range from a few hundred dollars to several thousand dollars, depending on the location and the size of the system.
Long - Term Savings
Over the long term, the savings from solar panels can be substantial. A well - maintained solar - panel system can last 25 - 30 years. Let's say your monthly savings are $150. In 25 years (300 months), your total savings would be $150 x 300 = $45,000.
Keep in mind that electricity rates are likely to increase over time. As the cost of grid - supplied electricity goes up, the value of the electricity your solar panels generate also increases, leading to even greater savings in the future.
Conclusion
Calculating the savings from solar panels involves looking at your energy consumption, solar - panel output, electricity rates, upfront costs, and available incentives. It might seem a bit complicated at first, but with a little math, you can get a good idea of how much you can save.
If you're interested in learning more about our solar - panel products or getting a custom quote based on your specific needs, don't hesitate to reach out. We're here to help you make the most of solar energy and start saving money. Whether you're looking for a small system for a cottage or a large system for a commercial building, we've got you covered. Let's start this energy - saving journey together!
References
- Energy Information Administration (EIA) for general electricity rate data.
- Solar Energy Industries Association (SEIA) for industry - related statistics and information on incentives.