Will Solar Panels Save You Money?

What would you do if you had an extra $140,000?

Are you tired of paying those ever-increasing electric bills? It makes dollars and sense to go solar!

Are you interested in installing a solar system, but hesitant of the initial cost? Would you like to learn how solar panels are the more eco-conscious choice for energy?

In this article, we are going to examine the benefits of going solar. We will also show you how solar panels can save you money for years to come!

Why Choose Solar?

There are many reasons to go solar but the two most popular are 1) financial savings and 2) the environment. Installing solar panels will empower you with freedom from the power grid. They also enable you to reduce your carbon footprint. Let’s first discuss the financial aspect.

The Financial Impact of Solar Panels (in the Midwest)

Here in the Midwest, the average monthly utility bill is approximately $100. This equals about 833 kilowatt-hours (kWh) a month, rounded to 10,000 kWh a year. Take a look at the bar graph below.

spreadsheet of monthly electric bill increasing

This graph highlights the projected increase in electricity rates. The national average increase across the United States is about 5%, and about 3% in the Midwest. If your electric bill is currently $100 per month, in 30 years that would grow to $243 every month. Power companies have a monopoly. So, the only way you can avoid paying these prices is to choose an alternative source of energy, like solar.

How much do solar panels cost? Let’s break down the hypothetical solar system installation pictured below.

solar design satellite view

sample solar panel project invoice

This example is based on the average Midwesterner’s electric usage, which again is about 833 kWh per month. In solar energy, that would require 24 panels on a shingle roof with no shade. Including parts and labor costs, this solar system would total approximately $19,105. If that seems like a big number, don’t stop reading just yet.

That may seem like a huge investment. But the cost to you is actually much less than the number you see here. The US Government has provided several tax incentives, such as the Solar Incentive Tax Credit (ITC). This helps reduce the amount you spend. This particular system would qualify for a 26% federal tax credit, which in this case is just under $5,000.

There are also state incentives, which vary from state to state. Our imaginary client here qualified for a state incentive, so he only has to pay 29% of the system costs. You read that correctly: 71% of the total cost is paid for via incentives and credits! With a deal like that, why wouldn’t it make sense to go solar?

To learn more about what incentives are available to you, give us a call today.

The Positive Environmental Impact

The next big reason people choose solar energy is to reduce their carbon footprint.

Currently, about 60% – 70% of our power is sourced from fossil fuels. For simplicity’s sake, let’s assume that 60% of the Midwest runs on fossil fuels. Just one house going solar has the power to reduce oil consumption by 470 barrels. The reduction in CO2 emissions would be the equivalent of planting 5,179 trees or 165.57 acres of US forests!

Your choice makes a big impact.

infographic of positive environmental impact


The evidence is there: going solar really does make dollars and sense. In our example here, it will take only 4 years to see a return on your investment. From the first time you power up your panels, you will be an environmental force for good. The benefits are unsurpassed!

At the beginning of this article, we asked you what you would do with an extra $140,000.

Let’s say you take the $100 a month you are saving on monthly energy costs and invest it over the next 30 years.  You will end up with $140,000 to put towards your retirement, your family, whatever you choose. No strings attached!

graph of projected investments

If you are still undecided on whether solar is the right choice for you, we encourage you to reach out.  Let Iconic Energy examine your situation and see if solar is right for you.  Chances are it is!

For anyone interested in starting the process of solar installation, please give us a call or fill out the ‘get a quote’ form on our website. We will be glad to schedule a time for a solar consultation. 

We will help you find the best solution for your unique circumstances. And we’ll show you how much money you can save by going solar.