If you are considering the solar panel investment, then you are probably looking for Reasons Solar Electricity Saves Money. Since it is a hefty investment to make, weighing all of the information carefully is vital.
Man installing alternative energy photovoltaic solar panels on roof
Reasons Solar Electricity Saves Money
Statistics show, that depending on the type of solar panels and units you have installed, you may save up to 70% off your utility bills. That number alone is enough to make this frugal heart happy. However, I realize that many are looking for more information on why this is a valid investment. Below, I am sharing more about how solar electricity, like the one discussed on New Jersey Solar Initiative, saves money.
Check our recent post about Reasons to Compare Electricity Rates!
Utility companies may end up paying you
Let’s start with my favorite reason to use solar electricity. If you live in an area that produces great sunlight you may end up making enough energy that the utility company will owe you money. Everyone wants to make money easily, and this is one passive income source that is also eco-friendly.
If you create more power with your solar panels than you use in a month, you will have a credit on your utility bill. At the end of the year, if you have a credit balance, it will be paid to you at a wholesale rate for kilowatt per hour. While most home solar panels won’t make a huge excess, some areas will make enough to give you a credit at the end of the year. Every dollar helps!
Check out this post that tells you the average savings using solar power in select states.
Using natural resources eliminates frustrating seasonal increases
One thing that is nice about using solar electricity, is that even in the colder or hotter months, the power can remain the same. If your solar panels are in an area with lots of direct sunlight, they will produce power for you no matter what the temperature is outside. The fact that solar energy is not based on temperature, but on sunlight, makes it easy for people in even colder climates to still make energy.
As a result, those increases in utility bills that happen when it either gets too hot outside or too cold outside ` may no longer be a concern for your family.
Increased equity in your home
While solar electricity may not put money into your pocket right now in this case, it does end up bringing you money later. This is useful when you look to sell your home later down the road. It can also work if you are planning to refinance to fund another project. In the long term, you will find this is an investment that is beneficial to your overall net worth.
Solar Electricity Off-Grid Living Easier
One thing that is nice about solar electricity is that it creates another way for you to become independent and off-grid. You are no longer entirely dependant upon the electric company to provide your power resources. This gives you the ease of living off-grid. This is great for having a homesteader way of living. While this isn’t appealing to all, it is for some families. One way many families are working toward saving money and living a minimalist lifestyle is going solar.
More Budget Tips:
While solar electricity may not be in your budget right now, there are other ways to save money. Below are a few of our popular posts to check out to help begin your new journey toward a frugal lifestyle.
How to Make A Budget Work for a Single Income