A resident of Berkeley Heights, New Jersey, Erik Helverson has worked in the solar industry. Previously a salesperson for Momentum Solar, Erik Helverson engaged homeowners to educate them on the savings benefits of using solar energy.
Installing solar panels on your roof will reduce your electricity bills. But how much can you save exactly? Well, it depends on two factors. The first is how much electricity your photovoltaic (PV) system generates. This is determined by the number of hours of direct sunlight your solar panels receive, how efficiently they convert solar energy to electricity, and the size and angle of the roof, among others. The more electricity a solar system supplies, the higher the energy savings.
The second factor is electricity rates. Fundamentally, households in states with high electricity rates save more than those in states with low rates, all other factors held constant. For example, on average, American households use about 10,400 kilowatt hours (kWh) of electricity per year. Multiplied by the average nationwide electricity rate of $0.1326 per kWh (in New Jersey, it’s $0.1642 per kWh), the average household spends $1,379 on electricity annually.
If the average household puts up a 6 kW solar system that meets 90 percent of their electricity needs, it will save $1,241 annually. If a family in New Jersey with the same electricity needs puts up an equally efficient solar system, they will save more because their electricity rates are higher ($1,536). Factoring annual utility rate inflation at 2.2 percent, homes with solar panels can save more in the long run.
Erik Helverson 