How to Offset Your Utility Bill with Solar Energy

Many people question why it is beneficial to buy a solar PV panel system. The answer is that it’s influenced by a variety of environmental and construction contingencies. These may include the design and positioning of your roof, your monthly electrical expense, the cost and quality of  photovoltaic (PV) cells, encouragement provided by your state government regarding tax deduct-ions, the current interest rate of a loan as well as the individuals’ concern for reducing carbon foot-printing thus investing in cleaner and more efficient energy technologies.

The basic advantage of installing a solar-power system is that it will dramatically reduce your electricity expense

Many Americans realize that it’s a common practice for utility companies to charge users consuming more electricity higher rates than lesser users.  For example, PG&E has developed a baseline scale for residential utility service.  Customers who consume above the baseline scale are charged a higher rate per kilowatt-hour (kWh). You may have noticed that your baseline capacity may fluctuate in accordance to the ten service areas in which you live.  It will also take into account whether your primary source of heat is electrically generated.  PG&E extends a higher baseline for homes heated primarily with elec-tricity.The base line quantity also fluctuates seasonally. The most beneficial aspect of a solar-energy system is that it can eradicate upper-tier expenses.  For example, PG&E customers have reduced their charges from 36 cents per kWh to 13 cents per kWh, which is a 63% reduction per kWh.

Reduce the demand for electricity in your homes or business

When approximating the proportions of your solar-panel system, it is important to first reduce your homes or business’s electricity demand.  This can be done several ways (see our 50 tips for energy conservation page), some very simple and some that may require a little upfront costs, but in the end it will be much more economical when implementing solar electricity.  If it is within your budget and your roof provides adequate space, it would be recommended to choose a system that regularly removes you from 4 and 5 tier ranges and places you in 2 and 1 tier category.  Investing in simple improvements such as compact fluorescent light bulbs and energy efficient appliances will also diminish utility costs.

The installation of grid-tided solar panel systems comes at a lower cost in the long run

The installation of grid-tided solar panel systems comes at a lower cost in the long run due to the net-metering agreement most utility companies offer to solar system users.  This would required a net-metering agreement which allows you to “sell back” excess electricity created by your system. 

A solar-panel system will help you avoid upper-tier expenses

A solar-panel system will help you avoid upper-tier expenses and with a Time of Use Schedule you may purchase energy when charges are reasonably low (“off-peak”) and sell electricity when prices are reasonably high (“peak”).  This system works well for consumers because most people are at work during peak hours and the sun shines brightest at this time allowing the customer to harness power and sell it back into the grid.

The most important factor in considering the installation of solar panels is your monthly utility bill.  The higher your energy expenses, the more feasible a solution it becomes.