How much money do solar panels save in 2025? - EnergySage

Solar panels aren't just good for the environment—they can also provide serious savings. How much money you can save varies based on several factors including your location, current energy usage, the size of your solar panel system, and, most importantly, the price you pay for electricity. 

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For example, if you currently pay $150 a month for electricity, you’ll save about $82,000 on bills over the next three decades. With lower electric bills, or a system that doesn't cover 100% of your electricity needs, your savings will be less. But that doesn't mean solar isn't worth it. Most solar shoppers save between $31,000 and $100,000 on electricity over the lifetime of their solar panel system.

We'll explain how to save money with solar, and how to calculate your estimated savings.

How much do solar panels cost?

Solar is an up-front investment. After you pay for the equipment and installation, your system will produce free electricity for years to come. But you may still have minimal electricity costs if your panels don't offset 100% of your usage. 

The cost of your system primarily depends on its size, which is determined by your electricity use. To estimate how much you'll pay for solar, multiply the size of your system (in watts) by the average cost per watt in your area—$2.56/W across the U.S., according to EnergySage data. Right now, an 11 kilowatt (kW) solar panel system (the average quoted size on EnergySage) costs about $20,552 after the federal tax credit. This is much lower than it was just 10 years ago. 

The federal solar tax credit allows you to apply 30% of your solar system's cost as a credit to your federal tax bill. Many states also provide local incentives, which help further reduce costs. And, if you live in an area with net metering, your local utility company will compensate you with bill credits for any excess energy your solar panel system sends to the grid, helping you save more over time.

How much do you spend on electricity?

The first step to understanding how much you can save is to calculate how much you spend on electricity annually. According to the U.S. Energy Information Administration, the average U.S. household uses 10,791 kilowatt-hours (kWh) of electricity annually. Multiply that by the national average electricity rate, $0.17 per kWh as of November , and you'll find that the average American family spends around $1,834 per year, or $154 each month.

Also, keep in mind that electricity prices are constantly rising due to inflation. Over the past decade, national electricity costs have increased by about 32%, or 2.8% every year. 

Annual utility rate inflation is one of the biggest reasons it makes sense to go solar. When you generate your own energy with a solar panel system, you lock in your energy costs at a consistent rate, which means you no longer have to worry about annual rate increases from your utility.

Electricity costs over time

As long as your roof is a good fit, solar panels are probably worth it. The Department of Energy breaks down how high your annual rate of return would need to be with other investments to match your solar savings. Spoiler: They'd need to be quite high.

By installing a solar panel system, you'll save on electric bills and reduce your carbon emissions. And if you have access to great incentives, like net metering or local rebates, or if you spend a lot on electricity, your savings will be high. We're talking upwards of $100,000 over 25 years in some cases. Either way, solar is a pretty risk-free investment, so it's worth it to start exploring your options.

There are a thousand reasons for a homeowner to install solar panels, and just as many providers willing to do the work — but some are more reliable and cost-effective than others. The many options can be so confusing that some potential buyers give up before they find the right energy solution for their homes. That's the problem EnergySage says it's trying to solve.

"Many other companies are always trying their best to get someone to buy something, at the highest price," President and COO Charlie Hadlow told The Cool Down. "We are dedicated to providing knowledge and transparency that empower people to make the best choices for themselves, their families, and their homes."

EnergySage's mission is to make energy efficiency simple. Instead of leaving you on your own to hunt for trustworthy providers for solar panels, heat pumps, and other money-saving energy solutions, the EnergySage website provides a list of fully vetted providers in your area with pricing information and tools for narrowing your options down. Think of it as something like Expedia or Booking.com for solar panels, or perhaps more like an auto insurance comparison platform like Progressive's. 

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If you're worried about seeing pages of misleading ads, you won't find those here. "We make pricing transparent," Hadlow told TCD. "We don't use high-pressure sales tactics. And we maintain your privacy along the way. Our whole service is free for homeowners and renters."

The organization offers unique services to ensure you get exactly what you want from your solar installation. 

"We don't require a number, so you don't get bombarded with sales calls. Instead, you message with installers right on our platform," Hadlow said. "Our expert analysts and researchers developed a unique rating system that helps you understand the quality of solar panels and inverters, giving you confidence in the systems you are being quoted."

The company also provides a free yearly marketplace report covering pricing and equipment trends "for solar panels, inverters, batteries, and more from solar companies in 41 states and Washington, D.C."

That approach has had outstanding results for both the company and the customers. "I would encourage anyone to go read our Google reviews," Hadlow said. "We have over 1,000 reviews from homeowners who have benefited from our platform. It always puts me in a good mood to read them."

EnergySage isn't Hadlow's first rodeo, as he revealed in his recent interview: "I worked on renewable energy in my prior role, and that's how I learned about EnergySage," he said. "I was a huge fan of what they were doing with consumer protection in the industry and actually sought out the founder (Vikram Aggarwal). We had coffee, and I told him I thought I could help."

Hadlow and his team worked hard to keep their service running smoothly even in the most challenging circumstances. "Navigating through the pandemic was no small feat," Hadlow said. "The solar industry, in particular, is one of constant change; there's a reason it's called the 'solar coaster.' … Fortunately, we saw the organization really pull together in those dark moments of ."

Now the company is reaching a wide range of customers — and saving them money. According to Hadlow, "Over one in five people looking to go solar in the United States visit EnergySage.com at least once before their installation. We have saved homeowners over $100 million by helping them spend 20% less than the national average on home energy projects."

By helping homeowners install solar panels, EnergySage doesn't just save them money on the equipment. Solar continues to save owners money on energy bills throughout its lifespan, making it an incredibly cost-effective home investment.

Plus, the more solar energy generated in American homes, the less need for electricity from polluting sources such as coal. Hadlow estimated that EnergySage's projects prevented almost 440,000 tons of carbon air pollution each year.

Hadlow also shared that EnergySage has recently passed $1 billion in facilitated solar project sales, a milestone he said he's incredibly proud of. "That's a big number that reflects our commitment to a world-class consumer experience and the strength of the nationwide network of installer partners," he said.

Ultimately, Hadlow said he sees his company as "here to help." 

"You don't have to shop through EnergySage, but come get our free information and talk to our free Energy Advisors," he said. "You'll feel so much more confident in your clean-energy decisions."

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