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How Much Do Solar Panels Reduce Electricity Bills​

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Many of us don’t know how much do solar panels reduce electricity bills​. Solar panels are the undisputed protagonists of our country’s energy transformation. The numerous bonuses, discounts, and tax breaks provided by the government for those who choose to install photovoltaic panels to power their homes’ energy production are proof of this.

What could “hold back” many Filipinos from installing panels on the roof or in the garden could be the cost of purchase and assembly: in fact, it is high compared to traditional radiators, an expense that is, however, recovered in a few years on the consumption in the bill.

How much do you really save? How much solar energy is needed to heat a villa or apartment? What are the pros and cons of photovoltaics? This guide answers these and other questions for those still unsure whether to opt for this clean and renewable energy source.

Consumption on the bill after the installation of the photovoltaic system

Installing photovoltaic panels is often said to be the most convenient green choice to reduce the cost of bills. Is it really so? This statement cannot be denied since the panels allow you to reduce costs significantly and, in some cases, eliminate them.

The energy produced by this system is divided into two types:

  • Self-consumed, that is, produced and used immediately at home;
  • That fed into the grid, i.e. excess energy that is not immediately consumed.

This means that if the system produces 4kW and the house inhabitants consume 3kW simultaneously, 3kW is self-consumption, while 1kW is energy fed into the grid. The part of the energy consumed produces an immediate saving because the energy manager will not account for it.

Hot water and heating, how much you really save with solar panels

Having understood the difference between energy fed into the grid and self-consumed, let’s see how much the annual savings actually amount to. In general, this system eliminates waste and guarantees 80% less costs related to hot water consumption and between 60 and 70% less for heating costs.

Let’s take a practical example. With an annual bill of 4500 kWh, those who have photovoltaic systems are as if they were paying for consumption equal to 450 to 1200 kWh, an overall saving of at least 75%.

There is also another economically relevant factor to consider: photovoltaic panels have a guaranteed life of 25 years, longer than any other energy generator, and do not require any particular maintenance.

In which cases it is not advisable

Installing photovoltaic panels on the roof is a convenient practice in the long term. In fact, over a period of 10 years (on average), the expense is recovered by saving on consumption. This investment is not convenient for those who have low consumption and therefore not enough to cover the expense and spend less on the bill.

For example, those who consume less than 2000 kWh in a year will not benefit from the photovoltaic system because the expense would be amortized too long.

Pros and Cons of Solar Panels

As we have seen, those who install photovoltaic systems enjoy undisputed economic advantages with the beneficial effect of reducing pollution by adopting a “green” lifestyle.

This is the list of the main benefits:

  • Those who have panels are not affected by the increase in gas prices; they can heat their home as in the past without spending more;
  • Self-production of energy eliminates the cost of the electricity bill and allows you to sell/exchange the excess energy produced,  further reducing costs;  
  • The panels do not require frequent maintenance;
  • Those who wish can take out an insurance policy that obliges the manufacturing company to repair any faults or malfunctions;
  • In 10 years at most, it will be possible to recover the initial capital spent.

However, there are some “cons” to consider, first of all the initial capital required, much higher than the installation price of radiators or underfloor heating.

Then there is the intermittency of energy storage: in practice, there will be less energy in winter and at night compared to summer; to overcome this gap, it is sufficient to install a storage system together with the panels that allows you to store the collected energy, using it when needed.

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