# Here’s how you can make money by going solar

- Link: https://greenlivingguy.com/2020/04/heres-how-you-can-make-money-by-going-solar/
- Published: 2020-04-20T22:43:20-04:00
- Author: greenlivingguy

⌊Solar power system being installed⌉⌊Solar power system being installed⌉Let’s talk
a [solar power system for your home](https://greenlivingguy.com/2020/05/examining-the-pros-and-cons-of-home-solar-power/).
First of all, electricity prices expected to rise over the coming years. So homeowners
are searching for ways to[ save on utility bills](https://greenlivingguy.com/2010/03/green-guru-guides-do-it-yourself-energy-audits-simple-solutions-to-reduce-your-utility-bill-and-carbon-footprint/).
As trends are shifting towards incorporating [sustainable energy sources](https://greenlivingguy.com/2020/04/first-solar-inc-seeks-more-rooftops-as-utility-plants-shrink/)
into daily life. Therefore many are considering investing in [solar energy power](https://greenlivingguy.com/2019/01/tesla-solar-energy-power-installed-new-roof/)
system. Not only does it provide a way to reduce the expense on bills, but it can
also significantly improve the value of the property.

[image Source](https://pixabay.com/photos/solar-panels-placement-green-energy-943999/)

Though prices of panels vary from place to place, studies show that the cost of 
buying and installing them is nearly [90 %](https://www.cbc.ca/news/canada/manitoba/solar-power-starter-guide-1.4789636)
lower than it was in 2010.

A lower price tag may be enough to attract some people. And the greater incentive
comes from the fact that there’s a way to make money from them.

So if you’re interested, read on to learn how this can be done.

#### Do I save money?

Going to a solar power system is a major step towards a greener approach. One of
the main advantages of installing solar panels is the reduction in the electric 
bill. So, yes you do save, but just how much you save is greatly influenced by where
you live. The number of hours of direct sunlight, the angle of your roof, and the
size of the panel all play an influential role in determining your savings. But 
the local electricity rate has the most impact. Before you can calculate your savings,
you need to understand your expenditure.

#### Understanding the numbers

Every homeowner knows how important it is to manage the budget. Understanding how
much energy and where it’s being used is the first step to comprehend how much you
can save with a [PV (photovoltaic or solar) system](https://greenlivingguy.com/2020/04/solar-pv-is-cheaper-than-gasoline/).
Several factors affect your residential energy consumption. These include: the size,
type, and age of your home, the number of people, the appliances you own, and how
well your house is [insulated.](https://greenlivingguy.com/2019/12/insulation-is-to-go-green-for-your-home/)

On average, a typical household utilizes approximately 10,000 kilowatt-hours (kWh)
of electricity in a year. Multiply that by the local electric rate to calculate 
the total cost for supply.

The local supply and delivery electric rate varies from place to place. For example,
the [average regulated price of electricity](http://www.hydroquebec.com/data/documents-donnees/pdf/comparison-electricity-prices.pdf)
in Toronto in 2018 was 13.24 cents per kWh and in Vancouver, it was 11.42 cents 
per kWh. That’s just supply costs.

So the annual utility bill for costs would be around $1,324 and $1,142 respectively.
Again is just for supply. Then there is the additional cost of delivery of the natural
gas usually and electricity.

So those delivery costs can go for 10.5 cents per kWh.
 Unfortunately, calculating
the utility bill isn’t quite that straightforward. Since the price of electricity
continuously fluctuates you can only calculate an estimated annual expense this 
way. Remember there are additional costs related to administration, transmission,
and distribution that contribute to the final amount.

#### So is it worth it?

Knowing how you spend annually will help you decide what to do next. Most people
understand that solar energy is not going to solve all of their energy needs. However,
it will greatly reduce the amount of energy you need to buy. A typical residential
solar panel array can produce 5kW, which can cover up to 75% of an average household’s
electric needs. The remaining required power can be acquired through the grid.

Everyone knows that solar panels help to save on the utility bill. Because of the
considerable up-front investment required in installing a solar power system, the
ultimate question for almost all consumers is: “How long will it take to pay back
the cost of installation?” On average, it may take between 7 to 11 years. But the
payback period depends on your consumption and the price of electricity you purchase
from the grid.

#### Will I still get an electric bill?

People often believe that once you invest in a PV system, you won’t receive a utility
bill. Recall this, when your panels do not completely fulfill your electric needs,
you use power from the grid. This usually occurs at night when the sun isn’t powering
the panels or during winter when there are fewer hours of daylight.

![Solar](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/2020/02/Tesla-solar-
panels-photo-copyright-Tesla.jpg?resize=150%2C150&quality=52&ssl=1 "Tesla solar 
panels, photo copyright Tesla - The Green Living Guy")

Tesla solar panels on a home Photo copyrights belong to Tesla

#### The right way to invest in a solar power system

By understanding your yearly energy consumption, you will be able to determine your
electric needs. This way you can specify the size of the solar power system that
you should install. Employ the services of a professional [solar installation company](https://greenlivingguy.com/2017/04/solar-installation-companywhat-to-look-for/)
to calculate how many panels you will need.

Since positioning and installation are both tricky aspects of the trade, select 
a reputable company that has years of experience, preferably one that utilizes the
[Scoop site](https://www.scoop.solar/). By implementing the right skills and technology,
you can expect only the best from them.

#### What are the benefits?

Many of you probably grew up in households with parents constantly reminding you
to turn off the light. Before, this was a simple and effective way to lower the 
electric bill. But today, it’s a way to make money.

With the use of a solar power system, any electricity that you don’t consume is 
immediately set off to the grid. For this reason, those who reside in places with
a considerable amount of sunshine find it beneficial to invest in solar farms. But
for a regular homeowner, net metering is a method to make a profit of a [PV system](https://greenlivingguy.com/2019/09/20-reasons-why-solar-pv-is-right-for-now/).
If you are expecting to get a check from the electric company, this is not the way
it works.

#### What is net metering?

Throughout the year, your PV system creates a varying amount of electricity, sometimes
more than you need and not enough at others. These peaks and valleys in energy production
influence your utility bill.

When the solar power system generates more electricity than you need, the excess
is fed into your electric utility’s grid, and your meter actually runs in reverse.
Your utility bill shows a credit based on the net number of kilowatt-hours you contributed
to the grid.

On the other hand, whenever you’re experiencing a power deficit, you can draw the
difference from the utility company. So whenever you use energy from the grid, you
won’t have to pay extra as long as it’s the same amount or less than what you provided
to the grid. This is known as [net metering](https://www.sempersolaris.com/can-you-make-money-from-your-solar-panels/).

#### Can I really make money from solar panels?

When you receive your monthly electric bill, the usage and metering credits will
be indicated. In fact, you may not have to pay anything. In general, most homes 
can build up significant credit during the summer. That’s when excess electricity
is produced. But during the colder months, the cycle is reversed. As consumption
exceeds production, the credit is eventually depleted during winter. This ebb and
flow of solar energy are why houses remain connected to the grid. It ensures that
your shortages are met while any excess you have is utilized efficiently.

Keep in mind that the rate you receive for credits is slightly less than the retail
price of the electricity you generally pay. Even if you have a generous contribution,
the utility provider is not likely to pay cash for the credits. However, most will
allow you to donate them to someone else.

So the next time you’re thinking about a Christmas or birthday present, maybe you
should gift them some of your electric credits!

#### About Michelle Joe:

Michelle Joe is a blogger by choice. She loves to discover the world around her.

She likes to share her discoveries, experiences, and express herself through her
blogs. You can find her on twitter: @michellejoe524

![Author to the post](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/2019/
04/img_7569.jpg?resize=228%2C266&quality=52&ssl=1 "img_7569 - The Green Living Guy")

![author avatar](https://secure.gravatar.com/avatar/df91669667126e1290c21ee0342c386e2da19d588d4d9ca6560bd82ed59a9641?
s=300&d=monsterid&r=g)

 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
expert, and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author,
Radio Host, Reporter, Writer and an Environmental Consultant on green living. The
Green Living Guy writes about green living, green lighting, the green guru guides
and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant
and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric
Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green
Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For 
Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke #
Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power
System by Brian Clark Howard and Kevin Shea # and more green living books to follow.

 [See Full Bio](https://greenlivingguy.com/author/greenlivingguy/) [  ](https://greenlivingguy.com/author/greenlivingguy/)