Can you actually save money with solar in 2024? As we head into the new year, and you begin to plan for all the things you want to accomplish in 2024, it is worth considering what moves you will make and how they will impact your overall success. To that end, it’s natural to look at solar and ask whether it will actually save you money to invest in a solar system.
When it comes to considering the value of solar, there are elements that remain constant no matter what, and there are elements that can shift depending on the landscape of markets and policies. With that being said, solar is still overall a powerful net positive for anyone looking to save money and add value to their home, and we can confidently say that you will actually save money with solar if you install it in 2024. Let’s break down some of the main reasons for why the value of solar is so strong.
Avoid Rate Hikes - Save Money with Solar
We’re going to start off on the topic of rate hikes because of some recently released information that you should know about if you’re a utility customer without solar. We spoke at length last year about a proposed rate hike which was coming down the pipe - at the time, we didn’t know the exact percentage of the rate increase, only that there were several proposals on the table and that all of them would drive up the cost of energy.
March of the Rate Hikes
Eventually, we received word of the approved rate increase, which was 12.8%. On average, this would add roughly $33 dollars to a monthly energy bill, and roughly $400 to your annual energy costs. While this would be a hardship for many California residents, who already pay much more for power than the rest of the country, we figured this would be the last rate increase for a while. Unfortunately, PG&E had other plans; with the arrival of the new year we received reports of a pending request for additional rate increases from the utility, one planned for March and one rumored to be arriving later in the year. The Q1 increase would add an additional $24 dollars to your monthly bill, and the rumored future increase would add an additional $43 dollars per month on top of that.
A Pressing Concern
All told, utility customers who rely on the grid for energy could find themselves paying $100 dollars extra per month for their power, which would result in a yearly increase of over a thousand dollars. The immediacy of this financial burden is what brings rate increases to the top of our list today, as the rest of the incentives will keep a moment while we address this. You shouldn’t have to pay more to use the same power you have been using, with no additional benefits realized on your end. Your energy bills could be going towards establishing a long term generation system that can help you save money, instead of renting power at an ever increasing net loss.
Property Value: Plant the Seed of Solar
Beyond the pressing concern of rate hikes lies the powerhouse value generator of a solar system. It reduces your monthly costs while putting an end date on your energy bill, it allows you to skirt high time of use prices by banking power for later, and over time it even pays for itself in savings. All the while, the mere presence of the system on your home raises the property value of your home, allowing you to double dip on the value of your system. Studies have shown that the value of a solar system on a home can cause a property value increase of anywhere from 4-6 thousand dollars per kWh of energy generation, meaning that the larger the system, the more value it adds. The long term investment value of a system on your home is just one of the many ways you can save money with solar.
Save Money with Solar this Summer
As we transition from the winter months into the spring season, we’re going to see a rush of people wanting to install solar on their homes. We call it the Spring Rush, and it happens every year like clockwork. Something about the return to warmer weather reminds people that summer is coming and the prime solar generation months are almost here, and they jump to get in line before all their friends and neighbors have the same idea. You’re welcome to join the rush in a few months, but if you want to save money with solar this year, getting on your solar plan now is the best way to ensure you are up and running in a few months instead of being stuck in the queue.
Ultimately, you can actually save money with solar in 2024, but if you want to make the most of those savings, acting soon is the best course of action. Wait too long, and you’ll be caught in the rush while paying more for power thanks to the latest rate hike. If that sounds like a headache, let our expert consultants make the process simple and painless for you!
