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One of the biggest reasons homeowners switch to solar is to save money—but how exactly does solar reduce your costs?
Solar lowers your electricity expenses in two key ways:
1. Using Your Own Solar Power
When your solar panels generate electricity, your home can use that power directly instead of pulling energy from the utility grid. For example, on a hot summer afternoon when your air conditioner is running, your solar system can power it in real time, reducing the amount of electricity you need to buy from your utility company.
2. Earning Bill Credits Through Net Metering
When your system produces more energy than your home needs at any given moment, the extra electricity is sent back to the grid. In return, your utility company provides bill credits that you can use later when your panels aren’t generating enough power, such as at night or on cloudy days. This system is known as net metering or net billing, depending on local policies.
In most areas, utilities credit you at the same rate they charge for electricity, meaning it’s a 1-to-1 exchange. However, some states—led by California—have started reducing solar credit values, in some cases to less than 30% of retail electricity rates. Because of this, now is a great time to install solar and lock in higher credit rates before new policies take effect.
Long-Term Savings Add Up
Whether you're using solar energy directly or earning credits for excess production, the financial benefits of solar can be substantial. If you currently spend $150 per month on electricity, that adds up to more than $20,000 over 10 years and over $50,000 in 20 years. Going solar can help reduce or even eliminate these costs, making it a smart investment for your home and future.
Where to Reach Us
Address: 200 S. Bayard St. Waynesboro, VA 22980
Phone: (540) 649-7467
Email: [email protected]
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