What are the average savings when going solar in New Jersey?
In solar, we tend to calculate savings based on the length of the warranty. At Cleanstart, we offer 25 year fully comprehensive warranties. So we will calculate the savings based on 25 years.
For the sake of saving hundreds of article pages, we will also assume that in these savings scenarios, the solar system will cover 100% of the homeowners electric consumption.
Also, we will assume the yearly increase in the homeowners electric bills are 6%. Please read about NJ energy prices.
Cash Purchase:
Example A:
- Old Electric Bill = $75/month
- Total amount spent on electric bills in 25 years = $51,974
- 10-Panel System = $7,500 – $10,000 after incentives
- New Electric Bill = $0
- 25 Year Savings = $40,000 – $45,000
Example B:
- Old Electric Bill = $150/month
- Total amount spent on electric bills in 25 years = $103,949
- 20-Panel System = $15,000 to $20,000 after incentives
- New Electric Bill = $0
- 25 Year Savings = $80,000 – $85,000
Even though long term savings are the highest with a cash purchase, please keep in mind you will need to be in a significant cash position to adopt solar in this method.
Financing:
Example A:
- Old Electric Bill = $75/month
- Total amount spent on electric bills in 25 years = $51,974
- 10-Panel System total amount spent in 25 years = $20,000 to $25,000
- New Electric Bill = $0
- 25 Year Savings = $25,000 to $30,000+
Example B:
- Old Electric Bill = $150/month
- Total amount spent on electric bills in 25 years = $103,949
- 20-Panel System total amount spent in 25 years = $40,000 to $50,000 after incentives
- New Electric Bill = $0
- 25 Year Savings = $50,000 – $60,000+
Out of the monthly payment solar acquisition options, a financed solar system will save you more than a lease or PPA, however, the monthly payment will be higher with this option.
Lease/PPA:
Example A:
- Old Electric Bill = $75/month
- Total amount spent on electric bills in 25 years = $51,974
- 10-Panel System total amount spent in 25 years = $20,000 to $30,000
- New Electric Bill = $0
- 25 Year Savings = $20,000 to $30,000+
Example B:
- Old Electric Bill = $150/month
- Total amount spent on electric bills in 25 years = $103,949
- 20-Panel System total amount spent in 25 years = $45,000 to $55,000 after incentives
- New Electric Bill = $0
- 25 Year Savings = $45,000 – $55,000+
Long term savings on a lease or PPA may be slightly lower than a finance due to the nature of a PPA which includes a 2.9% escalator. The monthly payments however are the lowest out of all the other options.
Conclusion:
Location is one of the most influential factors in solar pricing and costs. Somebody with the same exact home and electric usage habits in two separate zip codes only 15 miles apart can have two completely different solar costs. This is because of the demand on electricity and their electric providers energy rates.
Making the decision to go solar is an important one, and ensuring you have a dependable provider who offers excellent post-installation support is essential. Remember, in the solar industry, as with many others, you truly get what you pay for. By choosing a reputable installer, you can enjoy the long-term benefits of your solar investment with peace of mind. For any questions or personalized advice, don’t hesitate to consult with a trusted solar expert.
