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Can you actually save money by going solar? In this Big Dog Solar video, the team breaks down one of the biggest reasons homeowners consider making the switch: replacing a utility bill that can rise over time with a more predictable solar payment.
Using a simple example, the video starts with an $80 monthly electric bill. Over time, utility rates may increase, which means the amount a homeowner pays for electricity can increase as well.
With solar financing, the goal is often to design a system and payment structure that is reasonably close to what the homeowner is already spending on electricity. In the example, that solar payment is about $83 per month. Depending on the financing terms, that payment may stay more predictable over the life of the loan.
The long-term opportunity comes after the solar loan is paid off. At that point, the homeowner owns the system outright and can continue producing electricity from the solar panels without continuing to make loan payments.
Actual solar savings vary based on electricity usage, utility rates, system production, financing terms, available incentives, and other factors. But for many homeowners, the appeal of solar is gaining more control over their long-term energy costs.
As Mitch puts it: once the loan is paid off, “that’s the gravy.”
We get a lot of people coming to us knowing they can save money with solar, but they aren’t exactly sure how that works.
So my objective is to explain how it works with the help of a little visual aid.
Let’s assume you currently pay roughly $80 a month for your energy bill. That amount can continue to increase over the years as utility rates increase.
Instead, if you were to go solar, we typically try to get the solar payment somewhere around what you’re currently paying on a monthly basis.
For this scenario, we’ll call it $83 a month.
Depending on the financing, that payment can be locked in for the life of the loan.
When the loan matures — whether that’s 5, 10, 15, or 20 years — everything from there on out is the meat-and-potatoes topping, baby.
That’s the gravy.
So eat up.
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