When we talk about solar savings, we are actually talking about avoided energy costs, or the amount of money you would have spent on your electric bill had you not installed solar panels on your home.
Residential solar panels not only help you reduce your carbon footprint, they help you save money on your utility bills, as well. Rebates and incentives like the federal solar tax credit can help you save even more and make installing solar panels even easier.
How much you actually save depends on many factors, including your power usage, local electricity rates, and the size of your solar system. So when you see statistics on how much solar energy saves on average, those numbers aren’t taking all of these personal details into account.
The average annual electricity consumption for a U.S. residential utility customer is 10,694 kilowatt hours (kWh) per year, which is an average of about 877 kWh per month.
When you multiply that by the national average electricity rate of $0.13 per kWh, you’ll find that the typical American family has electricity bills totalling around $1,390 per year. This means that if enough solar panels were installed to cover this electricity usage, the average household would save by going solar would be about $1,390 per year.