How Much Do Solar Panels Save?
It’s no secret that solar panels save you money. That’s why so many of your friends and neighbors have installed them.
But solar panels are an investment. So, before you go solar, it’s smart to ask how much you can expect to save and whether your investment will pay off in the end.
In this article, we explain the factors that impact solar panel savings and how much you can expect to save with a home solar panel installation in California.
Let’s dive in!
Average Cost Savings with Solar Panels in California
Most California homeowners can expect to save between $1,250 and $1,650 a year with solar panels. But take those numbers with a grain of salt—every home is different and you may see different savings depending on how much electricity you consume and how many solar panels you install.
Let’s look a little closer at the math.
The average electric bill in California is $138.29, according to the most recent data released by the US Energy Information Administration. If your solar panels cover 75% of your electric bill (a modest estimate) you’ll save $103.72 a month, or about $1,250 a year. If your solar panels cover your entire electric bill, you’ll save $138.29 a month, or about $1,650 a year.
But electricity prices aren’t static. As inflation and price hikes drive electricity prices up even further, your solar savings will grow.
With Taylor Energy as your solar installer, you can expect significant savings. We install custom-designed solar energy systems that are tailored to your specific energy needs. We regularly install solar panel systems that cover 100% of our clients’ electricity costs, maximizing their savings.
What Impacts Solar Savings?
There are a few key factors that will determine how much you save with solar panels.
Electricity Costs
How much you spend on electricity will have the most significant impact on how much you save with solar panels. The more you spend, the more you will save. That’s part of what makes California such a great state for solar. We have some of the highest electricity prices in the country, and PG&E continues to raise its rates. Solar panels take power away from PG&E and put it in your hands.
Solar Output
The more electricity your solar panels generate, the more of your usage they’ll cover and the more you’ll save. There are a few factors that impact solar output, but system size and sunlight access are the most important.
System size - Solar panels should be sized based on your electricity consumption. A system that’s too small won’t cover enough of your usage to be worth it. A system that’s too large will cost too much upfront so you can’t make your investment back. Taylor Energy is meticulous about solar panel system sizing to ensure you don’t run into either of these problems.
Sunlight access - Solar panels need sunlight to produce electricity. Given the amount of sunlight we receive throughout the year, California is a great state to install solar panels.
Installation Costs
Of course, the more you spend on solar panels, the longer it will take to make back your investment through savings. Thankfully, solar installation costs are the lowest they’ve ever been. In California, solar installation costs have fallen by 42% over the past decade. Meanwhile, solar incentives like the federal solar tax credit have gotten better. In 2024, the solar tax credit reduces your upfront costs by 30% so you can spend less on solar and break even on your investment faster.
Taylor Energy Is Here to Help You Save
Taylor Energy is the premier solar installation company in Sonoma County. We are a premium installer that will ensure the highest payback possible with a custom-designed solar power system. Our solar engineers design high-performance solar power systems using top-tier products, and we back our work with a 10-year workmanship warranty.
With over 15 years and 50,000 hours of field experience, we are the California solar installer to trust in Sonoma County.
Find out how much you can save with solar panels! Call (707) 494-6008 or contact us for a free assessment.
Residential Solar
Get a free estimate for residential solar panel installation in Santa Rosa, Petaluma, Sebastopol, and surrounding areas. We are a Tesla Powerwall Certified Installer!
Rebates & Incentives
Save on your solar panel and solar battery installation with California solar incentives. Schedule a free solar consultation with Taylor Energy to learn more about the incentives you’re eligible for.
Commercial Solar
Cut operating costs and increase profit margins with commercial solar panels. Schedule your free commercial solar consultation with Taylor Energy today. We can help you find a solar solution that works for your business.
