Solar is a big investment that should save you significant amount of money over time. However, there are a few things you’ll need to know in order to maximize your savings. Otherwise, going solar can end up costing you more. Here are some tips from an industry insider that will help you maximize your savings with solar.
New to solar? Start from this Beginner’s Guide to Solar Energy.
Understand How Your Electricity is Charged
To maximize your savings, you first have to understand how utility companies charge you for your power.
Your utility company charges you for each kWh of electricity that you use and the cost is broken down to:
- Generation – the actual electricity
- Transmission – bringing that energy to the grid
- Distribution – bringing that electricity to your home
- Additional surcharges
The truth is: 2/3 of what utility companies charge you is the cost of delivering the electricity to your house. On top of that, the more you use it, or when you use it can dramatically affect your kWh rate.
Going solar reduces how much electricity you need to pull from the grid. You also get credits for surplus electricity that your system generates.
Offset Your Electricity Usage by At Least 115%-120%
This will keep your True-up bill low by offsetting your nighttime usage and degradation of your panels, helping you save for a long time. To learn more about the True-up bill, check out our Beginner’s Guide to Solar.
Put Panels in the Right Place
South-facing roofs get more sun’s rays than north roofs. Therefore, making sure your solar panels are installed in the optimal position will maximize your system’s productivity and help it continue to produce power over time.
Install Premium Panels
Premium panels have a higher efficiency rating (18% – 23%) and convert more energy from the sun into usable electricity. It might be a little more expensive when you purchase your system, but it will pay for itself over time
In addition, premium solar panels have a lower degradation rate (less than 1% each year) and a great warranty if something goes wrong
Microinverters Over String Inverters
Although string inverters can be a great cost-effective option, microinverters perform better if you have shading or if one of your panels stops working down the line. Moreover, microinverters provide remote monitoring so you can make sure your system performs as expected
To learn more about the various inverter options, check out our guide to How to Choose Solar Inverter for Your Home.
Purchase Your System Instead of Leasing
If you are eligible to take advantage of the Federal Tax Credit, you should consider buying. This helps keep your cost fixed and predictable. When financing, there are typically dealer fees built into the cost of your system. If possible, pay cash to get the best price and avoid interest
The solar installation process can vary from company to company. Some companies might have additional installation costs for your home while others don’t. Common adders include installation on tile roofs or main electrical panel upgrades. In addition, sales commissions can drive up your cost, which can cut into your savings.
Going solar is a great investment for your house and your future finance. It’s always good practice to do thorough research on the topics and talk to multiple solar companies before making your final decision.
If you have any further questions regarding solar or want to speak to someone directly, the solar experts at Purus Energy can answer your questions and make sure you will maximize your savings when going solar. Contact us at (925) 281 7370.