Did you know the average annual electricity bill in California is over USD 2800? Some of you might already know it. But are you aware that the amount is over 30% more than the national average? Electricity rate hikes have become a common thing across California. Most of California’s population is now habitual to it. But in the long run, it is a significant reason for many to worry. The sooner you embrace a solution, the better.
So, how do you deal with the rising electricity rates? One potential way to do so is going solar. But to what extent can solar energy benefit on the commercial front? Let’s see.
How Much Can Solar Panels Save You on Electric Bills?
To calculate electricity savings, let’s broaden our view to talk about hikes at the national level. The first step in calculating the savings is knowing the current spending. It is somewhere around USD 1400-1600 per year. Now, let’s also factor in annual electricity costs hikes, which are about 1.2-1.4 percent. In March 2022, electricity rate was increased by up to 9% after a similar rate hike in January 2022.
Utility rate inflation is an extra incentive for solar energy. When you generate your energy with a rooftop PV system, you protect yourself against rising energy costs at a constant rate. Thus, you don’t have to worry about the variable utility company rates.
Installing solar panels involves an upfront investment in the form of capital expenditure and any additional electricity costs if your panels can’t offer 100 percent of your electricity use. Whether your system offsets your electricity needs is determined by how correctly you size your PV system. A solar panel expert can help you determine how many solar panels you require to achieve those electricity cost savings.
Now, let’s see how much solar can help you save on your energy bills in various states. This is a 20-year estimate with assumptions that include a system of six kW, the electricity demand of approximately 10,500 kWh per year, 1.2-1.4 percent utility rate inflation, about 96-97 percent needs met by the solar panels, and panel ownership.
| State | Average Price of a 6-kW solar system | Average Approximate Electricity Rate (USD/kWh) | 20-Year Approximate Savings |
| California | USD 11,300 – USD 11,800 | USD 0.2050 | USD 30,000 – USD 32,700 |
| New Jersey | USD 11,900 – USD 12,200 | USD 0.1610 | USD 20,000 – USD 22,600 |
| Massachusetts | USD 12,900 – USD 13,400 | USD 0.2200 | USD 32,000 – USD 34,000 |
| New York | USD 13,200 – USD 13,700 | USD 0.1850 | USD 25,000 – USD 26,000 |
| Arizona | USD 9,500 – USD 10,000 | USD 0.1230 | USD 16,000 – USD 16,500 |
How Can Solar Panels Lower Your Carbon Footprint?
As mentioned earlier, while benefiting on the commercial front, solar panels prove to be a sustainable solution as well. Installing solar refers to supporting environmental conservation efforts and reducing greenhouse emissions. In the above case, wherein we considered a six-kW system, an annual solar energy production of approximately 8,500 kWh, total carbon emissions could be reduced by about 6-6.5 metric tons per year.
Are you looking for a complete solar panel installation solution? Partner with Nabu Energy. Our expert solar energy consulting and premium solar modules with the best-in-class performance enable you to save costs as well as contribute positively and optimally to the environment. Our panels are designed to optimize energy production, enhance safety and get constant feedback from every module. Thus, you always stay aligned with your energy objectives. So, go solar with us. Call us at (510)-737-6228 to know more.
Any and all information is subject to change without prior notice and information may not be current and valid unless confirmed in writing with Nabu Energy.