How Much Does Solar Power Cost Compare to Regular Electricity

It seems like our utility rates are constantly increasing, which is leaving many people wondering how much does it cost to solar power a home compared to regular electricity?

Although sunlight is perpetually free and abundant, most families purchase it from their local power plant. However, inflation is causing many to get creative and look into alternatives. When investing in solar energy, you invest in something more economical than standard electricity. The World Economic Forum (WEF) indicates that installing new solar panels is cheaper than investing in coal, natural gas, or other fossil fuels.

And by directly drawing on the sun's power, the middleman is eliminated. Setting up a private power plant on your roof is the ultimate efficiency.

Let's Calculate the Cost

The typical US residential electric rate is about 12 cents per kilowatt-hour. As recently as 2014, the average monthly electric bill for a residential household before taxes and fees was $114. Rates have varied a lot over the years—seasonally, yearly, and monthly—but overall, they've risen, especially over these last 18 months.

To be sure, a solar energy system can assist you in shielding yourself against these fluctuations and the recent increases. The global average solar panel module cost dropped 75% over eight years, from $3.25 per watt to $.72 per watt, depending on where you live. The cost-effectiveness of your solar installation will most likely depend on your home's structure and location, local weather patterns, and the quantity and strength of the sun's light where you live.

Since 2010, the cost of a complete residential solar panel system has fallen by about 45%, thanks to new, widely utilized financing and leasing options. Once it pays itself back, which usually takes 5-10 years in most locations, all of the solar electricity it produces will be free or greatly reduced when you have a solar energy system for your home. And you can start saving money from the very first day your system generates electricity if you finance it.

Save with the sun starting now.

Read Next: The Seven Benefits of Solar Power

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