When calculating the amount of savings realized by installing a solar energy system, it is important to think long term. Electric rates have been rising about 6.7% per year on average in California since 1970. As time goes on with the rising cost of electric rate inflation, your savings actually increase each year.

For example, if your electric bill is currently $250.00 per month, with the current rate of electric inflation, you will spend approximately $176,663.00 over the next 25 years. Depending on conditions, you could be able to save 95% off your electric bill. That amount is up to $167,830.00, less the cost of the system and financing (if any) that would be available as a cash savings to you.

The cost of a solar system is a small portion of that amount and financing options are available that can put solar to work in your home for no money down. You can also save up to 40% off the price with current rebates and tax incentives. You could pay less on the financing of your PV system than you pay to PG&E.

You may be thinking that you won’t be staying in your home for the time it takes to accrue the savings over a 25 year period. Well, the warrantees are transferable so the other benefit of installing a solar power system is that it increases the value of your home at an estimate of 20 times your annual savings.

Another type of savings is the impact on the environment. Solar energy is a renewable alternative to building power plants that burn fossil fuels and emit greenhouse gases, which lead to global warming and climate change. Piece-of-mind comes with doing your part to keep our planet safe and healthy.

So when you are evaluating solar savings, keep the following points in mind: