If you’re considering installing a solar energy system for your home or business, you probably have one immediate question: how much does solar save?
Initial Solar Savings
Federal and state tax credits for installation of photo-voltaic systems on Long Island are currently extremely generous. NY State offers a 25% tax credit (up to $5000) and the Federal Government offers a 30% tax credit, for a total possible tax credit of up to 55% of your system cost. If you install your system in late fall, you could see this credit as soon as you file your taxes in January.
Short-Term Solar Savings
From the first day your solar energy system is installed, you’ll start to save on your monthly utility bill. Depending on the system you choose, solar power collected by PV panels can provide electricity, solar hot water, and even solar pool heating.
How much your new solar system saves you depends on several factors—including your home’s size, location, and roof placement—but generally, you can expect to save 50-100% of your home’s average electric bill every month. On Long Island, with the average monthly PSE&G bill at $83 (as of 2014), that could mean $996/year in savings or $19,920 over a 20 year period. With net metering, many of our customers create a profit on top of getting rid of their electric bill because of surplus power generation, which is then purchased back by PSE&G.
Long-Term Solar Savings
Solar energy is a great hedge against future energy rate hikes. The relative savings from solar energy will only increase over the years, thanks to rising utility prices across the U.S. Especially in the New York, Northern New Jersey, and Long Island area, utility rates are already considerably higher than the national average. So while 100% of your monthly utility bill may be $83 right now, in another five years, utility rates will only rise and those savings will increase.
What does this mean? Frankly, coupled with tax credits currently available from state and federal governments, it means that there is no better time than the present to invest in solar.
Solar energy doesn’t just save money on your electric bill, but also adds significant value to your home. Renewable energy sources like PV panels will only become more desirable as utility prices continue to rise, so if you choose to sell your home, your solar energy system could be a huge draw to prospective buyers.
Solar power is an investment, both in your family’s financial future and in the environment. We want to help you make the most of that investment, and to have a full picture of the costs and savings of solar for your specific home. For a detailed custom estimate of what you can save with solar, contact us today!