In today’s world, where sustainability and cost-effectiveness are becoming increasingly important, harnessing solar power has emerged as a viable solution. Solar energy not only reduces your carbon footprint but also offers substantial savings on your electricity bills.

However, before diving into solar panel installation, it’s crucial to understand how to calculate your potential solar savings accurately. This guide will walk you through the steps to determine the financial benefits of going solar.

Step 1: Assess Your Energy Consumption

Before estimating your potential solar savings, it’s essential to understand your current energy usage. Review your utility bills from the past year to gauge your average monthly kilowatt-hour (kWh) consumption. This data will serve as a baseline for determining the size of the solar system you’ll need to meet your energy needs.

Step 2: Evaluate Your Solar Potential

Assessing your property’s solar potential involves analysing factors such as location, roof orientation, shading, and available space for solar panels. Tools like Google’s Project Sunroof or online solar calculators can provide estimates based on your address and roof characteristics.

At IDES, we offer personalised insights into your property’s solar potential and gauge a wider understanding of your potential savings.

Step 3: Determine System Size

Based on your energy consumption and solar potential assessment, calculate the size of the solar system required to meet your needs. Solar system size is typically measured in kilowatts (kW) and is influenced by factors like sunlight availability and panel efficiency. A larger system can generate more electricity but will also come with a higher upfront cost.

At IDES, we offer a free design and consultation which allows us to get every detail on a plan to you and offer several alternatives. We include your initial deposit, the potential savings and payback time.

Step 4: Estimate Installation Costs

Once you’ve determined the size of your solar system, you can estimate the installation costs. Factors that impact installation costs include equipment expenses, labour charges, permits, and any necessary upgrades to your electrical system. Request quotes from multiple solar installers to compare prices and find the best deal.

Step 5: Analyse Available Incentives and Rebates

Government incentives and rebates can significantly reduce the upfront costs of installing solar panels. Research federal, state, and local incentives available in your area, such as the federal investment tax credit (ITC), solar renewable energy certificates (SRECs), and utility rebates. These incentives can substantially enhance your solar savings and improve the return on your investment.

Step 6: Calculate Payback Period and Return on Investment (ROI)

To determine the financial benefits of going solar, calculate the payback period and ROI of your solar investment. The payback period represents the time it takes for your solar savings to equal the initial investment. Divide the total installation costs by your annual solar savings to find the payback period. Similarly, ROI measures the profitability of your solar investment and is calculated by dividing the net benefits (savings minus costs) by the total investment.

Step 7: Consider Financing Options

If the upfront costs of solar installation are prohibitive, consider financing options such as solar loans, leases, or power purchase agreements (PPAs). These arrangements allow you to install solar panels with little to no money down and pay for them over time using the energy savings generated by your solar system.

Step 8: Monitor and Optimise System Performance

Once your solar panels are installed, regularly monitor their performance to ensure they’re operating efficiently. Keep track of your energy production and compare it to your expected output. Additionally, consider investing in technologies like solar panel cleaning and maintenance to optimize performance and maximize your solar savings over time.

With all our installations at IDES, you get online monitoring, giving you access to your own real-time data.

Conclusion:

Calculating your potential solar savings is a critical step in making informed decisions about adopting solar energy. By assessing your energy consumption, evaluating your property’s solar potential, estimating installation costs, and analysing available incentives, you can determine the financial feasibility of going solar. With careful planning and consideration of financing options, solar power can not only reduce your carbon footprint but also provide long-term savings on your energy bills.