Home / News / How Much Can You Save By Installing Solar?

You may have heard the claim that installing solar panels is a household improvement that will “pay for itself,” which can be true over the long term, but the reality can be much more… complicated. For one thing, the cost of a solar system — and the amount of money it can potentially save you — varies widely from household to household.

Calculating Your Electrical Usage

To accurately determine how much you can save by installing a solar system on your home, we must first assess how much electrical energy you use each month. When meeting with or talking to one of E2’s solar experts, we will begin to uncover the energy needed to offset your home’s electrical usage from solar energy production. To start, we will ask for a power bill showing your electrical consumption over the past year.

We will also uncover any electrical changes you might undertake in the next few years. These changes could be adding an EV, replacing appliances or old A/C or heating units, adding a hot tub, installing new insulation, or replacing your windows. All of these improvements can increase or decrease the energy you use annually.

Energy-Related Cost Savings

Most people can offset their energy charges annually by installing the appropriate number of solar panels on their roof (and again, this number varies from home to home). Depending on which utility you purchase power from, you may be able to offset all of the charges from the utility or up to 97-98% of your annual charges. (Each utility has different net-metering policies in Central Oregon.) That’s savings that can be used for other household investments.

For instance, someone who, on average, has a $150/month power bill can save up to $1,800 annually on their power bills. In addition, there are federal incentives (of 30%), federal tax credits, and, depending on available funding, incentives from The Energy Trust of Oregon and Oregon’s Department of Energy. Most people can recoup their investment costs in as little as seven to ten years. Additionally, most systems come with 25-year warranties, so your investment is protected.

Solar’s Impact on Home Value

In addition to reducing monthly utility bills, a 2024 analysis of Zillow data found that solar boosts the national average value of a home by 6.8 percent on average, and even more in high-demand regions. Solar can also help a home sell more quickly.

A general rule is that the more your solar installation saves you on annual electricity bills, the more value it adds to your property. (It’s important to note that a leased solar array cannot be considered to add value to your home, no matter what an overly zealous salesperson might tell you.)

The Big Picture of Solar

Our stance is this: installing a solar system is a way for you to pre-pay for power now while taking advantage of federal and state incentives, and you won’t have to worry about the rising costs of our power in Central Oregon each year. If you choose not to install a solar system, you’re essentially renting your power from the utility — and this rent will go up in perpetuity until you no longer own your home.

If you’re ready to find out if your home is a good candidate for solar, contact us for a free estimate. We’ll help you calculate your potential cost savings now and in the future.