Forecasting Your Solar Savings: How Much Can Solar Save You?
The weather in the Midwest often can be unpredictable —one day it’s warm and lovely, the next, temperatures drop drastically. While we can’t always predict the weather, one thing is certain: the sun will shine more days than not and that means you can calculate your solar savings with some accuracy agains how much electricity rates continue to rise.
That’s why switching to solar energy is one of the smartest financial decisions you can make. When you substitute paying the utility company that raise their rates with energy generated from free sunshine you’ll see your rainy day fund effortlessly grow.
So how much can solar save you? Like the weather, it may seem hard to predict, but thanks to technology and historical data we can actually make fairly accurate estimates on annual and lifetime savings on solar. Of course, solar production varies day to day based on the sunshine, but when we account for yearly and seasonal sunshine averages we can find out how much solar can save you.
The Financial Benefits of Going Solar
In 2025, the savings from solar energy are more significant than ever, thanks to advancements in technology and increasing electricity costs. Here’s what you can expect:
1. Immediate Reduction in Electricity Bills
Most homeowners experience a 50-90% decrease in their monthly electricity costs after installing solar panels. This means more money in your pocket from the very first month.
2. Long-Term Savings Add Up
Solar panels typically last 25-30 years, and during that time, homeowners can save an average of $50,000 to $100,000 on electricity costs.
3. Increased Home Value
Homes with solar panels sell faster and for 6.8% more than comparable homes without solar, making it a valuable investment.
4. Federal Tax Incentives
The federal solar tax credit (ITC) allows homeowners to deduct 30% of the cost of installing a solar energy system from their federal taxes. This incentive is available through 2032.
5. Net Metering Saves Even More
Many utilities offer net metering, which gives homeowners credits for excess energy their system produces, further reducing energy costs.
Solar Savings: A Before & After Scenario
Let’s illustrate how solar can transform a typical household’s energy expenses.
Before Solar:
• Monthly electricity usage: 900 kWh
• Average cost per kWh: $0.14
• Monthly electric bill: $126
• Annual electricity cost: $1,512
After Solar:
• Solar system size: 6 kW
• Monthly solar electricity production: 750 kWh
• Remaining electricity from the grid: 150 kWh
• New monthly electric bill: $21
• Annual electricity cost: $252
• Annual savings: $1,260
In this example, the homeowner reduces their annual electricity costs by 83%.
Over 25 years, assuming a modest 3% annual increase in electricity rates, total savings could exceed $50,000.
Beyond the Savings: Environmental Impact
Going solar isn’t just good for your wallet—it’s great for the planet. A 6 kW solar system offsets approximately 5.5 metric tons of CO2 annually, which is equivalent to planting 90 trees every year!
Ready to Calculate Your Solar Savings?
If you’re wondering, “How much can solar save me?” the answer depends on your energy usage, location, and system size. Get a free solar savings estimate with our Solar Savings Estimator here.