Without a doubt, the long-term trend for electricity prices is upwards. Over the past decade, electricity prices have risen by an average of three percent each year. Eliminating or significantly reducing these costs will save you a lot of money in the long run. By going solar, you also protect yourself against rising prices and make your monthly bills more predictable. With solar you produce your own energy, so it takes away the anxiety associated with rising and fluctuating energy prices.
Let’s assume electricity prices will continue to rise by three percent each year. The typical U.S. home spends about $1,200 annually on electricity. If you buy a system that meets 100 percent of your electricity needs today, you will have an extra $1,200 in your pocket a year from now. The following year, when prices go up, you’ll save $1,236. Your savings will continue to grow for the 25+ years that your panels generate electricity, adding up to $32,000 over the lifespan of your system.
Even if you don’t have the cash to buy a solar energy system up front, you can still reduce energy costs by financing your solar panel system with a solar loan, solar lease, or solar power purchase agreement (PPA). Most solar financing options require no money down and reduce your monthly expenses from day one of installation. As an added benefit, your monthly energy costs will no longer fluctuate – they will simply be the monthly amount of your loan or lease payment.