Have you ever thought about harnessing the power of solar or other renewable energy sources for your home? We're here to assist you on this green journey! Research and data indicate that adopting renewable energy for your home offers numerous advantages, including:
- Decreasing your dependence on fossil fuels, resulting in financial savings for you and thereby reducing the emission of harmful greenhouse gases
- With photovoltaic (PV) panels, your home can independently generate electricity, ensuring you an uninterrupted power supply even during storm-induced outages
- Homes equipped with eco-friendly features like PV systems or geothermal heat pumps can command higher resale prices
- Numerous incentive programs support energy-efficient improvements, including renewable energy upgrades, by providing rebates, low-interest loans, tax incentives, and more
So, how can you get started on this eco-friendly journey?
Embarking on the path to establish a renewable energy system for your home involves a systematic approach. This process includes evaluating your current electricity consumption, understanding local regulations and standards, deciding whether to remain connected to or disconnect from the traditional power grid, and gaining a comprehensive grasp of the available technological options at your disposal.
A renewable energy system can efficiently cater to some, or all your electricity needs through various technologies, such as:
- Compact solar electric systems
- Small wind electric systems
- Micro-hydropower setups
- Small hybrid electric systems that combine solar and wind energy
For those designing a new residence, collaborating with your builder and contractor is essential to seamlessly integrate your small renewable energy system into your overall home design, promoting energy efficiency.
What about the long-term savings associated with using a renewable energy system?
In the United States, according to Forbes’ data the average household typically spends approximately $125 per month on energy bills,. If your renewable energy system sufficiently meets your energy demands, you could save up to $1,500 annually. While the initial power bill after installing renewable energy may show immediate savings, the full savings become evident after several years when these savings have offset the installation costs.
For example, if we consider an estimated initial cost of $12,000 for solar panels, it might take around eight years to recoup your investment, factoring in current average energy expenses and production figures. Given that solar panels usually maintain efficiency for 25 to 30 years, you can expect 17 to 22 years of continued energy cost savings. With an estimated annual saving of $1,500, you could potentially accumulate savings ranging from $25,500 to $33,000 over the lifespan of your system — assuming energy prices remain stable.
At MMC Lending, we offer our award-winning mortgage services in 13 different states. Leveraging the same Forbes' data, we've created the chart below to illustrate estimated savings from using solar energy for the average household in each of these 13 states.
| STATE |
AVERAGE COST FOR 6-KW SYSTEM WITH 26% FEDERAL TAX CREDIT APPLIED |
AVERAGE COST FOR GRIDE POWER (JULY 2022) | AVERAGE HOUSE HOLD KWH USE PER MONTH | DERIVED ESTIMATED YEARLY SAVINGS ASSUMING 100% SOLAR COVERAGE OF ELECTRICAL NEEDS | DERIVED ESTIMATED NUMBER OF YEAR TO "BREAK EVEN" ON INVESTMENT |
| Alabama | $10,142 | 14.99 ¢/kWh | 1,144.77 | $2,059.21 | 4.93 |
| Arizona | $10,123 | 13.08 ¢/kWh | 1,113.69 | $1,748.05 | 5.79 |
| California | $11.278 | 26.77 ¢/kWh | 604.91 | $1,943.21 | 5.8 |
| Florida | $10,301 | 13.95 ¢/kWh | 1,141.50 | $1,910.87 | 5.39 |
| Idaho | $12,654 | 11.22 ¢/kWh | 955.28 | $1,286.19 | 9.84 |
| Nevada | $10,922 | 13.50 ¢/kWh | 970.67 | $1,572.49 | 6.95 |
| New Mexico | $12,343 | 15.09 ¢/kWh | 669.89 | $1,213.04 | 10.18 |
| Oregon | $11, 144 | 11.74 ¢/kWh | 916.27 | $1,290.84 | 8.63 |
| Tennesse | $10,293 | 13.09 ¢/kWh | 1,168.32 | $1,835.20 | 5.61 |
| Texas | $10,967 | 13.53 ¢kWh | 1,131.93 | $1,837.80 | 5.97 |
| Utah | $11,411 | 11.49 ¢/kWh | 768.85 | $1,060.09 | 10.76 |
| Washington | $10,390 | 10.52 ¢/kWh | 969.49 | $1,212.25 | 8.57 |
It's important to note that individual households have unique energy requirements, which may result in variations in your savings compared to the average estimate provided above. Bottom line solar panels are likely to not only pay for themselves, but also yield net savings.
Want next steps? Check out these links!
- Southern California Edison’s Smart Energy Program:
- PG&E energy-savings programs:
- Office of Energy Efficiency & Renewable Energy on choosing the right solar installer:
- Energy Star Rebate Finder:
