Do Solar Panels Save Money?

A Look at Your Solar Panel Savings Potential and the Cost of Not Going Solar

Of all the reasons to install solar panels, none have a more direct impact on you than the potential to save money. But is it really true? Do solar panels save money? Can the switch to clean, renewable energy really provide benefit to both our planet and your bank account?

figuring out cost of solar panels

It may sound too good to be true, but the answer is yes. With over 12 years of solar installation experience, we’ve seen it happen for our customers time and time again. Still, solar panel installation is something that requires a careful, strategic plan that’s backed by real data and customized financial planning. For you, the individual considering solar panel installation, it requires a long-term savings mentality. Yes solar installation is a significant investment upfront. Yes it will take time to realize your full solar panel savings potential. Yes it really is worth it in the long run when you look at the full picture.

See the Full Picture with Solar Savings Expertise

If you can bring a long-term savings mentality to the table, MOXIE can provide the detailed financial calculations and technical planning that ensure your solar panels provide a return on your investment. Not only does MOXIE have a robust team of expert engineers and installers, but we also have some seriously smart financial gurus that can put your energy costs into perspective.

Do Solar Panels Reduce Electricity Bills?

Now, back to the question of do solar panels save money. Obviously, if solar panels were to save you money it would come in the form of reduced electricity bills. Well, just look at this MOXIE customer’s electric bill before going solar and after going solar.

Electric Bill Before Solar Panels

how much can i save with solar

Electic Bill After Solar Panels

The difference in cost comes from the fact that this customer is now the owner of a personal energy production system. Instead of renting electricity from the utility company, they are now producing the majority of it themselves. Now, realize that they are still receiving a bill for their total solar installation cost (unless it was paid for in full). This will initially be the larger expense over your utility bill. However, it will typically be no higher of a monthly expense than what you’re paying for rented energy right now. And once that system is paid off your monthly savings skyrocket.

So, we now know that when you go solar your total monthly costs for energy will likely be no greater than what you’re paying now. And we know that once your total system cost is paid off, the real energy savings/financial payoff begins.

Maybe the question isn’t “do solar panels save money?” but rather “how long will it take to see the savings?” Luckily, it just takes simple arithmetic to figure this one out.

The Cost of NOT Installing Solar

MOXIE CEO, Jason Hall, has an interesting story. Before starting MOXIE, he was actually the youngest bank president in the history of Iowa. His passion for numbers recently helped illustrate how the case for saving money with solar panels is so strong. One day, during his fervent solar savings calculations, which he likes to do on the whiteboard in our meeting room, Jason laid out his calculations for the “Cost of Not Going Solar.” The thought was that if you could clearly see that something will cost more money if you don’t take action, why wouldn’t you take action?

Here’s his mathematical breakdown for the cost of NOT going solar. It’s a look at what the average homeowner’s costs will be over the next 25 years if they don’t install solar, continue renting their energy, and experience a 3% annual rate increase (which is fairly typical in the markets we serve) :

cost of not installing solar panels

That’s right, over the next 25-years (the warrantied life of most solar panels) your cost for renting electricity will likely be in the neighborhood of $50,000. Take that in for a minute. That’s the long-term perspective we want you to see.

We often have customers say, “Once I saw the savings in front of me, installing solar was a no-brainer.” When customers factor in the total cost of their solar panel installation and compare it to their “cost of doing nothing” they typically find that the solar panels will pay for themselves in about 8 years. After the system is paid for, the savings really start adding up for the next 17+ years. That’s what makes solar panels worth it in the long run.

Your Cost for Installing Solar

It’s important to realize that the initial cost and the long-term savings for installing solar vary from person to person. It’s not because solar companies don’t want to advertise a price, hoping they can pull one over on you once you take the bait. It’s simply that energy needs, energy costs, and solar panel incentives vary from person to person and state to state. As mentioned before, realizing solar panel savings requires a customized and laser-focused approach. If solar companies handed out cookie-cutter solar system designs and prices, it wouldn’t have a great result. For a greater understanding of what goes into determining your cost for solar panel installation, see our article 5 Factors that Affect Your Total Solar Panel Installation Cost.

Stop Renting Your Electricity

Hopefully, this has helped you better understand the answer to the multi-tiered question “do solar panels save money”. When you take a step back, look at the full picture, and work with a solar company that has both engineering and financial expertise – the answer is undoubtedly yes.

So what are you waiting for? The longer you wait the more money you’re wasting on rented electricity. Make the switch to solar today.

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