Variance in energy usage and energy cost around our great country mean that an average number is of little use. However, folks like statistics and so.
The average annual electricity consumption for a U.S. residential utility customer is 10,766 kilowatt hours (kWh) per annum, an average of 897 kWh per month.
Multiply that by the national average electricity rate as of November 2017 ($0.1301 per kWh) and you’ll find that the typical American family is spending over $1,401 a year on electricity. This means that if each home was to install enough solar panels to cover their electricity bill then on average the savings from installing a residential solar system in America in 2018 would run to $1,401 per year.
Are solar savings real and what is avoided cost?
When we talk solar savings we are talking avoided cost. That is, the amount you would have spent on utility electricity had you not installed a solar powersystem on your home to provide the same power. And yes….these savings are very real. In fact, the extremely high likelihood that you will continue to need to consume electricity at your house means that solar savings are considered a very bankable investment return.
However, the first step to working out solar savings is to first understand how much electricity you use now, how much that costs you and how much electricity you are likely to use in the future.
How much will solar panels save you?