Is My Electricity Bill High Enough to Justify Going Solar?
Jun. 14, 2022
Electric bill savings are one of the main benefits of installing solar panels at your Massachusetts home. Installing home solar panels and battery storage can significantly reduce your monthly electricity costs, and in some cases, solar can eliminate electricity bills entirely.
Before making the switch to solar, you may be wondering whether your electric bill is high enough to warrant going solar. In most cases, the answer is yes. If you’re using an average amount of electricity ($132.18 a month in Massachusetts in 2020), solar is worth it for your home. If you fall below the $50 a month mark, however, going solar may not be the most cost-advantageous solution for your home—unless you are planning to electrify your home, that is.
You’ll start saving on your electricity bills right away when you install solar panels, and Massachusetts solar incentives like SMART, net metering, and ConnectedSolutions can help speed up your payback period.
Solar Panel Installation Is More Affordable than Ever
When solar panels were first introduced, they were an expensive technology that the average homeowner could not afford. Times have changed, however, and solar panel costs have gone down significantly. Today, solar panel installation is much more accessible.
Solar incentives, like the federal solar investment tax credit (ITC), help to reduce the upfront cost of a solar installation. With the solar tax credit in 2022, you can reduce your federal tax liability by 26% of your solar installation costs. This can make your upfront installation costs much more manageable and make the investment worth it even if your electricity bills are on the lower side. To take full advantage of the ITC, though, you’ll need to act fast—the tax credit for residential solar projects drops to 22% in 2023 before ending entirely in 2024.
How Long Will It Take to Pay Off a Solar Installation?
The amount of time it takes to pay off a solar system installation will be different for everyone. Factors like the size of your system, your energy consumption, the financing plan you used, and the incentives you qualify for will all affect your payback period.
To calculate the amount of time it will take to pay off your solar installation, follow these steps:
- Calculate your total solar installation costs and subtract the value of any up-front incentives, like the federal solar tax credit.
- Add up your estimated electric bill savings and payments from monthly incentives like SMART.
- Divide your estimated costs by your estimated savings.
The result of this calculation will be the number of years it will take for you to recoup your investment. After that, you’ll be making money off your solar panels!
Not sure what your estimated costs will be, or what your average electric bill with solar panels will look like? Boston Solar can help you estimate your solar costs and savings during your complimentary solar consultation.
Reduce Your Energy Usage Before Going Solar to Save on Installation Costs
If you can reduce your energy usage before you install solar panels, you’ll be able to reduce the size of the system you need to meet your electricity needs, leading to lower upfront costs and a faster payback period. You can reduce your electricity usage by making small changes, like switching to LED lightbulbs and using ceiling fans instead of air conditioning whenever possible, as well as more significant upgrades, like installing new insulation or upgrading to energy-efficient appliances.
Learn More About How Solar Panels Affect Electric Bills
At the end of the day, deciding whether solar panels are worth it for you is a very personal decision. No two homes use energy the same way, and everyone’s budgets are different—what one person sees as a quick payback period, another might consider too long.
Boston Solar can help you make the best decision for your home and needs. We are the leading solar installer near you in MA, and we’ve been empowering Massachusetts homeowners to take control of their energy usage and production for over 10 years. We’ve helped thousands of homeowners go solar in a way that works for them, and we can help you do the same.
Have questions about solar electric bill savings? Call 617-858-1645 or contact us to schedule a free consultation with the best solar provider near you in Massachusetts—Boston Solar.