Many people have two, burning questions about solar:
First: Can it actually save me money?
Second: If it can save me money, how much could it save me?
In this blog post, we’ll dive into these answers and give you a rough expectation of what you might expect if you choose to go solar.
Q1: CAN SOLAR ACTUALLY SAVE ME MONEY?
The simple answer is “yes.” Solar has saved thousands of people meaningful money over the months and years they’ve had solar on their roofs.
Here’s how it it generally works:
You pay a certain amount of money to your utility company every month to power your home. These utility companies create your power by burning fossil fuels like coal to superheat water, which produces steam to spin turbines, creating electricity. This, as you can imagine, is not an incredibly efficient, or sustainable way to create energy, which is why we’ve seen a consistent rise in energy prices year over year.
Solar is different. It’s not only a more efficient way to create electricity (the photovoltaics within each solar panel convert sunlight into potential energy), it’s also more sustainable. The energy you produce runs through a net metering system, and is sent back to the grid. You only pay your monthly system fee.
While the initial cost of a solar system may seem steep, at Aveyo, we ensure that your monthly payments are less than your average monthly energy bill. The discrepancy between your new monthly bill and your old energy bill can fluctuate depending on where you live, but we see meaningful savings more often than not.
Once your solar loan has been paid off, you simply pay the monthly connection fee (which is normally about $6) your utility company requires. This means you’ve not only freed yourself from a monthly energy bill, but the price hikes that invariably come along with it.
Q2: HOW MUCH COULD GOING SOLAR ACTUALLY SAVE ME?
The not-so-simple answer to this question is: “it depends.”
Your solar savings can vary widely depending on several key factors, including where you live, how much electricity your home uses, and the cost of your solar system. By understanding the variables that impact your savings, you can get a much clearer picture of what to expect.
One of the biggest influences on solar savings is location. Electricity rates can vary widely from state to state. In areas where utility rates are high (like Hawaii, New Hampshire, Connecticut, Florida, and California), solar quickly becomes a compelling, money saving alternative. Add in local incentives, tax credits, or rebates, and your potential savings can grow even further.
Another major consideration is how much electricity you use. Homes that consume more energy, whether from air conditioning, electric vehicles, pools and hottubs, or home offices, have more to gain from going solar, since offsetting a larger electricity bill typically leads to bigger savings. Even households with moderate usage can still benefit, especially over the long term, but the scale of those savings may be smaller.
The cost of your solar system also plays a huge role. Today, the average home solar installation ranges from $15,000 to $25,000 before incentives. That might sound steep, but federal tax credits and state-specific programs can shave off a sizable portion of that price. How you pay for your system also affects your bottom line. Buying it outright usually offers the greatest return on investment, while solar loans can spread the cost over time. Leasing options require less upfront money, but they also limit your total savings since you're not the system’s owner.
It’s also worth thinking about the long-term financial landscape. Utility rates generally rise over time, which means the more electricity costs go up, the more money you save by avoiding those bills. And if your local utility offers a net metering that gives you credit for sending excess solar energy back to the grid, your savings can increase even more.
To put this all into perspective, consider a homeowner in Southern California who installs a $20,000 solar system that offsets 100% of their electricity use. After incentives, their out-of-pocket cost might be around $14,000. Over 25 years, that system could deliver $30,000 to $50,000 in total savings, depending on how energy prices fluctuate.
The bottom line? Solar can absolutely save you money. In some cases, a lot of it. But the exact amount depends on your location, your energy habits, and the choices you make about system size and financing. The best way to get an accurate estimate is to speak with a local solar provider or use Aveyo’s savings calculator to get an idea of what going solar could do for you.
