Installing a solar energy system is a smart choice for the environment and your wallet. One of the most satisfying aspects of going solar is watching your energy bills shrink. But how do you figure out just how much you’re saving? It’s not as complicated as you might think. In this easy-to-follow guide, we’ll show you how to calculate your solar savings.
What You Need
Before you begin, make sure you have the following information handy:
Your Most Recent Energy Bill
Your energy bill will show how much excess energy you fed back into the grid, how much you are charged per kWh you use, and any feed-in credit you’ve earned. Energy use is measured in kilowatt hours (kWh).
Production Data for the Same Period
You can get this data from your inverter app or solar monitoring system. It will tell you how much energy your solar panels have generated during your billing period.
The Calculation
Now, let’s get down to the calculation:
Subtract Feed-In from Total System Production
Start by subtracting the kWh’s of energy you fed back into the grid from the total production of your solar system during your billing period.
Total System Production – Solar Feed-In kW = Solar Energy Consumed
For example, if your solar system produced 500 kWh during the billing period and you fed 100 kWh back into the grid, your solar energy consumption would be 400 kWh. This is 400 kWh you didn’t need from the grid.
Multiply by Your Energy Provider’s Rate
Take your solar energy consumption and multiply it by the rate your energy provider charges per kWh. For our example, let’s use a rate of $0.32 per kWh.
Solar Energy Consumed * Provider’s Rate = Solar Savings
If your energy provider charges $0.32 per kWh, your solar savings for the billing period would be $0.32 x 400 kWh = $128.
Add Your Feed-In Credit
If you’ve earned a feed-in credit, add that to your savings. For example, if your feed-in credit shows $8.00, add $8 to your total solar savings.
In this example, your total solar savings would be $128 + $8 = $136.00.
What If You Have Multiple Rates On Your Energy Bill?
If your energy provider charges different rates for different times of the day and you’re unsure which one to use, you can calculate an average rate. Simply add the total cost for each rate you were charged during the billing period and divide it by the total kWh consumed. This will give you an approximate average rate.
Conclusion
Calculating your solar savings is a great way to see the real-world benefits of your solar energy system. Remember that every kWh of solar energy you use will save you much more than the same kWh fed back into the grid.
By following these simple steps, you can track how much money you save while reducing your carbon footprint. Remember to check your bills regularly to keep tabs on your solar system’s performance and your growing savings.
Fun Fact: as energy prices go up, so do your savings!
If you don’t yet have solar installed and you’d like to know how much solar could be saving you, then it’s time to speak to an expert at Lamora Energy.
