Solar panels can save you $50,000 if you spend $100 a month on electricity — here's how to unlock massive savings

Learn about the immense savings you can get from adding solar panels to your property. 

The scoop

The lifetime savings associated with going solar are substantial. The initial investment in solar panels can be intimidating. But this report breaks down how solar panels help you save thousands of dollars.

If you're curious about how much you can save, use EnergySage's free online tools. The site calculates your approximate total savings. Just enter your address, property type, and average monthly electricity bill. 

It assesses roof size, sun exposure, electricity rates, tax rebates and incentives, and average market price data. Then, it tells you how much you could save and how long it would take to recoup your investment. Whether you've been considering solar or not, this easy-to-use tool is a must-try. Finding out how much you can save takes less than two minutes.

How it's helping

This one requires a little math, including projections toward future gradual increases in what your electric company charges, so while that's making a bit of an assumption, it's hard to imagine that inflation alone would not cause the bill total to rise each year.

With that in mind, according to EnergySage, if you currently pay around $100 on your electric bill from the grid and we assume an average annual increase of 2.8%, your total electricity costs after 30 years with those yearly increases will be about $54,570. Solar often pays for a person's entire energy needs, but even if you got smaller panels, it's easy to see how those panels will pay for themselves and then some — and that's with a bill of just $100 per month year-round.

Most pay more, particularly those using window air conditioners in the summer. If that describes you and you average $200 monthly now for electricity and were to experience that same 2.8% increase, you could save more than $100,000 in 30 years.

These large savings could pay off a mortgage, buy a new car, or help with retirement. 

The upfront investment could still be of concern. But you might be able to take advantage of tax incentives for going solar, and EnergySage helps with securing loans for solar as well. 

The Inflation Reduction Act offers a 30% tax credit for solar installation. Solar panels installed between 2022 and 2032 are eligible for that massive incentive. President Donald Trump said he may get Congress to cut IRA benefits, so it might be worthwhile to go solar before they're gone.

Remember, a tax credit is not the same as a deduction. Deductions lower the amount of income being taxed. Credits directly lower your tax balance. If you owe $10,000 and get a $3,000 tax credit, you only have to pay $7,000. This means you can recoup your investment sooner while enjoying monthly utility savings, and companies like EnergySage can help to sort out your options and pick from several installation company choices like an Expedia for solar.

But solar panels aren't just great for your bank account. The more solar power you use, the less harmful pollution created. This helps cool the planet, slowing down the changing climate. Switching to solar power reduces pollution, making the air and planet healthier for everyone.

What everyone's saying

Plenty of people have reaped these benefits. A Reddit post discussing whether solar is worth it highlighted the advantages.

"Installed ours last year, haven't had to pay an electric bill since, so yeah it was worth the cost," one user shared. "Should break even in about 6.5 years."

Someone else listed their benefits, noting "Reduced / Removed my energy bill," "back up power to the home during wind storms," "Reduces my risk of freezing and water damage," and more.

After citing that they even got "rebates from [their] energy company for providing access to the battery during peak summer usage days," they ended their comment by saying, "My electricity has become a profit center."

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