Confused homeowner seeks advice on saving money with solar panels — here's the info they received that could save you big

A Redditor was having trouble figuring out the math on solar panels and whether they were worth the investment. They asked r/TeslaSolar: 

"My 11.75Kw system and powerwall comes around 42K, $309/m. And, after tax credit it's $211/m. My average electricity bill across a year is $180/m. 211 * 300 months > 180 * 300 months. What am I missing on savings or calculations?"

The scoop

It turns out the original poster's math was missing a few things. The top-voted reply broke it down simply: 

What is stopping you from upgrading to a heat pump system? The cost of installation 💵 I live in a cold area 🥶 I don't know enough about it 🤷 I already have one 😎 Click your choice to see results and speak your mind.

"What you pay today for electric rates isn't what you'll be paying tomorrow. In CA, PG&E is asking for 20% + rate increases."

Sure enough, residential electric utility rates have been trending upwards for years. PG&E in particular has gone from 13.76 cents per kilowatt-hour in 2006 to 23 cents per kilowatt-hour today. 

How it's helping

Solar panels and storage really do earn your money back over the long haul, and the payback period is only getting shorter. If you're interested in taking the leap, check out the EnergySage calculator to find out how much you can save.  

What everyone's saying

The Reddit community did a great job of fleshing out the context for home solar beyond the singular monthly utility cost versus the solar installation cost. 

"ROI is definitely there on powerwalls if you live in a state with incentives for batteries," said one commenter. "My state has a program where they pay me so they can drain my batteries to help support the grid during times of high demand. I also get an additional $.05 / KWh on the monthly payment I receive for any solar generated."

"Financing is much more expensive than cash; particularly at today's high interest rates," notes another Redditor. They went on to posit that utility rates will outpace financing costs anyway. "You already have fairly cheap electricity, but you seem to assume that the cost doesn't increase over time, which would be nice, but on average it rises 2.7% per year (U.S. average 1990-2020). At that rate of growth, your average cost of electricity over 25 years would be about $265/month. $265 x 300 months > $211 x 300 months."

Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.