Hi, this page is devoted to helping prospective solar customers determine if solar is worth investing in. There are two boxes where you can input your average power bill and what percentage you think power companies will increase electric rates by every year. The calculator will then take those inputted numbers and show you what your average bill today will probably do based on that yearly increase in the future.
Pro-Tip 1: Historically, power companies have increased their rates by at least 5% every year. Some years they lowered rates but raised connection fees, and other charges, and vice versa. Some charge different amounts at peak times and off-peak times. Ultimately, the cost of electricity went up. Tracking this on a daily, monthly, or even yearly basis can get confusing. Historical data over decades shows a minimum of 5% increase every year, compounding.
This calculator shows what happens to your average power bill if rates increase by a specified percentage per year.
Total Spend This Year
$030 Years with No Increases
$030 Years with Specified Increase
$0Cost To Do Nothing
$0Year | Monthly Bill | Yearly Bill |
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The above calculator, based on your input, gives valuable information.
There are 5 categories to consider:
“Total Spend This Year” simply multiplies your average electric bill by 12 months to show you roughly what your electricity expenditure will be this year.
“30 Years with No Increases” multiplies your “Total Spend This Year” by 30 to show you what electricity would cost you over the next thirty years if you were to freeze your rates at today’s prices.
“30 Years with Specified Increase” multiplies each year by the rate increase you inputted then adds it up to show you your total cost of electricity over the next 30 years with that increase.
“Cost To Do Nothing” is the difference between “30 Years with Specified Increase” and “30 Years with No Increases” to show you how much not freezing your rates at today’s prices, by going solar, will cost you.
“Yearly Breakdown” shows what your power bills, monthly and yearly, will do over the next thirty years. If you have a quote for solar and the monthly payment is higher than your current average electric bill, you can use this data to see how many years it will take for the compounding rate increases to raise your power bills above the quoted payment.
Pro Tips:
Pro-Tip 2:
Obviously there will be some fluctuations in the data. Average power bills will vary. If there are major electric use changes in your household, kids go off to college, grandparents move in, Tesla charger is installed, etc., your electrical expense will change. Rate increases will vary too. Many experts are predicting that much higher than average energy rate increases can be expected. 5% should be considered a minimal estimate.
Pro-Tip 3:
If you are considering a solar lease option and would like to compare that against purchasing solar outright. Ask your rep what the “escalator” on the lease is and put that in for the “Annual percentage increase (in %)” box. The escalator is the amount the leasing company will raise your rates every year. In this case, the “Cost To Do Nothing” box will indicate what leasing vs buying will cost you.
Frequently Asked Questions
Answers To Common Questions
Why thirty years?
There are a few reasons. First, most manufacturers guarantee their panels will still function at over 90% production in thirty years. Secondly, finance companies offer twenty-five to thirty-year terms on a loan for solar. Cash buyers of solar will compare the lump-sum cost of solar to the lump-sum cost to do nothing. People who choose to finance will compare their monthly electricity payment to their monthly solar payment. We have found that even with finance company interest rates and fees over thirty years, the total price for solar is still significantly less than the cost to do nothing.
Many homeowners are not in their “forever” homes yet, but still would like to avoid rising electric rates. When it comes time to sell your home, there is the option to take your solar with you, but your electric consumption may be different in your new home, and cost to move solar can be a burden, so this is often ill-advised. Many solar customers choose to sell their solar with their home. If you were a prospective home buyer and one option was a home with no electric bill, which would you choose? So would most other home buyers. The home may cost a little more, but they can take what they would be spending on electric and deduct that from their new mortgage payment. There are lease options too.
What about when the kids move out, or back in, and our electric consumption changes?
Most systems are upgradeable. If your consumption rises, you can simply add more panels as needed to compensate. Roof space and other possible obstacles will need to be considered. If your consumption goes down and your solar is producing more than you use, your power company may compensate you for that overage. It’s not the get rich quick scheme that has been propagandized by some solar advertisers, but it’s something. Another thing to think about is batteries. The overage can charge your batteries for use during a power outage.
So, if the grid power goes down, mine will too?
Yes. A traditional solar installation feeds all the electricity it produces back into the grid to offset what you are using. If the grid goes down, your home will be as dark as your neighbors. There are alternative installations that use batteries that can be considered. Let your representative know, and they can design a system to your specific needs and wants.
Once or twice a year you should have your panels cleaned. This is usually a trip fee plus about $10 a panel. We include a full system check when we do it for our customers to make sure all is well. If you are in a heavily wooded area with lots of pollen, or a heavily populated area with lots of smog, are the main difference between once and twice a year. Obviously, the cleaner your panels, the more productive they will be.
Call us. We’ll determine exactly how much power you use. Based on that, we will design a battery system that will run your entire home. Then we will design a solar array that will keep those batteries charged. Manage your expectations. This is no longer a situation where you can expect solar to pay for itself anytime soon. Being self-sufficient has value. Being prepared for power outages has value. Expect to pay for these benefits.
What if my HOA won’t allow me to put panels on my roof?
They are overstepping their authority in Florida. Solar is a protected home improvement that HOA’s are not allowed to prevent you from purchasing. Look into the Florida Solar Rights Act for more information. Here’s a link: https://energyresearch.ucf.edu/consumer/energy-policy/florida-solar-rights-act/
Will this help save the world?
Maybe. Solar is considered a green, carbon reducing, non-polluting, clean energy source. We read that on the internet somewhere. It sounds true. We also read that the mining of the minerals for the panels was hard on the Earth and practiced ethically questionable labor policies. There was also something about the amount of fossil-fuels consumed in their transport. More about landfills filling up with broken panels that cannot be recycled. All that sounded true as well. We feel there is not enough reliable information out there. Both sides of the argument seem to have alternate agendas which makes their data unreliable. For us, it’s math. If it costs less to have it, get it. If it costs more, don’t.
I saw on the internet that the government will pay me to go solar. What’s that about?
We saw that too. We have learned that this is “clickbait” used by solar lead brokers. They gather your information then sell it to as many solar contractors as they can. You phone blows up for a few weeks. Then they sell it again to more solar contractors.
It’s more “clickbait”. The justification is that you are taking the money you are paying your electric company and using that to pay for your solar. They have twisted that into meaning it’s “free”, but you still have to pay for it. Whenever a product gets as much attention as solar is getting, you can bet it will attract the worst sales elements who aim to pick the low hanging fruit. It’s up to you to not be that low hanging fruit. Be careful.
Run. Solar contractors are selling one size fits all solar systems and creating problems for thousands of solar customers throughout Florida. By the time these customers find out that their solar system only slightly reduces their power bill, and now they have an electric bill in addition to a solar payment, there are few options for recourse. Due diligence is key if you are a serious solar prospect.
The solar and energy efficiency industry has made the solar decision more complicated than it needs to be. There are other considerations, but ultimately, it is a financial decision. If it costs you less to have solar than it will to continue paying your power bills which will go up every year, then it makes sense to go solar.
Yes, there is a tax credit. Yes, it’s green, clean, and renewable. Yes, it will increase the value and marketability of your property. Yes, it looks good to many now and will look better to more and more as people get educated on it. Yes, the technology has advanced where solar will outlast generations. All that may, or may not, be important to you. At the end of the day, we think it’s about money.
So, if the quote for solar you have is less than your cost to do nothing, we think it makes sense for you to go solar. If it is more, don’t. If you don’t have a quote for solar yet, or would like to compare yours to another, please allow us to introduce ourselves:
We are not a lead company that is going to sell the information you provide here to a hundred home improvement providers, repeatedly over the next several years, and guarantee that your phone never stops ringing.
We are AllSolar Energy...
…a solar and energy efficiency company that has been serving
Central Florida since 1999.
We strive to be a legal, moral, ethical, and competent option to the increasing population of solar prospects who are having doubts about the industry. Bad solar contractors does not mean solar is bad. It is an efficient and effective way to freeze electric costs at today’s rates when done properly. We do that.
We are assuming, since you are here, you would like to know what it would take to put solar on your home. With the information you provide, we will design a system specifically for you based on your home and electric consumption. We will estimate the price for that system. If it is less than you are paying now for electricity, we will recommend you purchase it. If it is more than you are currently paying for electricity we will recommend you don’t. For us it is a simple mathematical decision. You may have other considerations you deem important. We will rely on you to inform us of those so we can address them in your design.