Cost vs Savings Of Installing Solar Panels in Each State

The drive to switch to renewable energy sources continues to grow each year. Solar energy is one of the main alternatives, given that it can be used not only in industrial settings but in residential homes as well. Tampa solar companies are among the key promoters of this renewable energy drive, helping to wean homeowners of their dependency on electricity from the power lines.

Many homeowners and landlords are realizing the importance and sustainability of solar energy. Rising energy costs have also helped to push more people to switch to solar energy. Installing solar panels at your house can be an expensive venture. For example, you can expect to pay a minimum of $15,000 for solar panel installation. In some cases, this installation cost could go up to $25,000. However, this installation can pay off in the long term. By investing a few thousand dollars in solar panel installation, you end up saving much more energy costs over the lifespan of the solar panels.

How Solar Panels Work        

Understanding the workings of solar panels helps people to better appreciate their energy-saving properties. Solar panels consist of tiny cells called photovoltaic cells. These are the ones responsible for the production of electricity from sunlight. For most people, using solar panels is just a way of supplementing their normal electricity. For example, by installing solar panels, a homeowner can cut their electricity bill by up to 20%. Of course, several factors go into determining how much you save on utilities. If you have numerous electrical appliances like large refrigerators and air conditioning, you can expect your electricity bill to be high even after the installation of a few solar panels. You’ll have to make a complete switch to solar panels to see a significant decrease in your electricity bill.

The Lifespan of Solar Panels

Good quality solar panels, once properly installed, can stay effective for up to 30 years from the time of installation. This means that a homeowner can expect to enjoy such energy efficiency for that period. Of course, some factors will affect this longevity. For instance, places that tend to experience a lot of snowfall and hail may not be ideal for solar panels. This is because snow tends to degrade the structural integrity of the photovoltaic cells. This is one of several things that can affect the lifespan of solar panels. However, snowfall and hail represent extreme cases that can affect solar panel longevity. For most regions of the world, such extreme weather conditions are non-existent. This means that they can expect to enjoy solar panel efficiency for more than 20 years. Whatever amount of money that a homeowner spends on installing solar panels is recouped over this period.

Electricity Rates By State

How much you pay for electricity greatly depends on where you live. Some states tend to have higher electricity rates, measured by how much kilowatts (KWh) a household consumes. The average household pays about 12 cents per watt of electricity. 

Of course, electricity consumption is not only for households but also for industrial and commercial establishments. Commercial establishments include small businesses like retail grocery stores and private corporations. Industrial establishments include large factories and manufacturing plants that use significantly much larger quantities of electricity.

States with the most expensive electricity rates for residential houses include:


ii) Rhode Island

iii) Massachusetts

iv) Alaska

v) Connecticut

The cost of electricity per kilowatt in Hawaii is over $0.32. Connecticut has the lowest rate in this category with the cost of electricity per kilowatt at a little over $0.21. Rhode Island, Massachusetts, and Alaska have rates that lie somewhere between $0.21 and $0.32.

States with the most expensive electricity rates for commercial establishments include:

i) Hawaii

ii) Alaska

iii) Rhode Island

iv) Connecticut

v) Massachusetts

While this list is similar to the states with the most expensive electricity for residential areas, the rates here differ. For example, while Hawaii tops both lists, its rates are different for commercial and residential electricity wattage. While it costs over 32 cents per kilowatt for residential homes, commercial establishments pay a little over $0.30 per kilowatt of electricity in Hawaii. In Massachusetts, commercial establishments pay just a little over $0.17 per kilowatt of electricity. Alaska, Rhode Island, and Connecticut have rates that lie somewhere between $0.17 and $0.30.

The states with the most expensive electricity rates for large industries include:


ii) Massachusetts

iii) Alaska

iv) Rhode Island

v) Connecticut

Here, Hawaii still tops the list. However, this rate is lower than for commercial and residential electricity wattage ($0.26 per kWh). Large industries in Connecticut can expect to pay a little over $0.14 for a kilowatt of electricity. Rhode Island, Alaska, and Massachusetts have rates that range between $0.15 and $0.18.

These statistics indicate that most of the states with the most expensive electricity rates are somewhere in the Northeast of the United States, with a few exceptions like Hawaii and Alaska.

 The same trend holds for states with the lowest electricity rates. Most of these states are found in the Midwest, including:

i) Nebraska

ii) Idaho

iii) Iowa

iv) Illinois

v) Wisconsin

vi) Utah

vii) Kentucky

Most of these states in the Midwest have electricity rates that range somewhere between $0.05 and $0.08 per kilowatt.

Some states further south, like Louisiana, have even cheaper rates of less than $0.05 per kilowatt.

How Much Money Do Solar Panels Save You On Electricity Bills?

With the average American household paying close to $1,500 in electricity bills each year, many homeowners are looking to cut costs. It should be stated that installing solar panels rarely eliminates electricity bills. However, it can significantly bring your utilities down.

Taking the average lifespan of well-installed solar panels to be 20 years, you can save as much as $30,000 in electricity bills in that time. Of course, where you live determines this. For example, if you live in Massachusetts, you can expect to save as much as $34,000 over 20 years while using solar panels.

There is no doubt that solar panel installation will help you significantly cut down on your electricity costs. Reach out to us at West Bay energy. We can help you cut down on your electricity costs by installing good quality solar panels at your house, thereby helping reduce your dependency on the electricity from the power lines. Reach us here 

West Bay Energy,

6260 39th St N STE I Pinellas Park Florida 33781,