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Solar Power Cost VS Regular Electricity Cost

Solar Power Cost Vs Regular Electricity Cost – Solar panels are magnificently great for not only the environment but also for your pocket at the same time. it can benefit you over the lifetime by saving some serious amounts on your electricity utilities. This is to compare solar power cost vs regular electricity cost to know the difference. Ready? Let’s proceed and find out solar energy vs. traditional energy.

Solar Power Cost VS Regular Electricity Cost

The answer is sharp YES to the question – Do solar panels really save money? It is contingent on a number of factors when it comes to calculating the amount of savings in the real course. Apart from direct sunlight hours, the size and angle of your roof play a critical role in determining the cost you save from the sun. Here, check out the solar panel cost calculator.

Understanding the Concept of Savings in Both Cases

To grasp the entire story, we have to drive through some statistical reports pertaining to the phenomenon. In order to understand how much a solar system can save you, it is compulsory to calculate your current spending on electricity every year.

Let’s take an example. The average electricity requirement of a US-based family is 10,972 kWh. Now, multiply the figure with the national average electricity rate that is 0.1328 US Dollars per KWH.

Hence, the average electricity cost of a typical American family is $1450 per annum.

  • The next crucial thing you need to consider is the volatile nature of electricity prices. You can determine the prices in the coming years, following the yearly rates during the last decade.
  • Rates are sure to increase annually. Over the last 10 years, electricity utility rates have been increased at a rate of 2.2 percent every year. You have to adjudge this electricity inflation as an incentive for the solar system.
  • Once you established a solar panel on your rooftop, you’re no longer to encounter recurring increments in costs. The costs remain constant and you don’t need to worry as you did in the opposite case.

Let’s have a state-wise scenario in the USA to craft a clear picture of savings offered by solar panel systems. It will show you the solar panel vs regular electricity cost more apparently.

New York$13,720$0.1733$30,584
New Jersey$12,388$0.1593$28,337

Various Factors Affecting the Cost of Regular Electricity

To find out the cheaper source of energy, we also need to pay emphasis ondeterminants of standard electricity costs. Numerous factors are prevailing there to influence your regular energy costs. Have a look.

  • Fuel Cost

Fuel is the prime ingredient in the process of electricity generation and distribution. Fuel costs tend to vary from time to time.The fuel prices will get higher marks following the higher demand for electricity in a particular region. Ultimately, it increases the cost of electricity for residential and commercial locations.

  • Power Plants

Another promising factor to add more bucks to your electricity bill is the power plants themselves. The authorities have to conquer various types of charges like building, operating and maintaining etc.

  • Climatic Conditions

Extremely winters and summers spawn higher usage of electricity. Therefore, you will pay more electricity utility costs.

  • Regulating Authorities

The electricity regulating authorities also have a direct impact on your utility bills. They have direct command over electricity charges but vary from state to state.

  • Maintenance System

The regular power plants accrue lots of costs like repairing, transportation, distribution and some others. All these costs are collected from the customer’s pocket.

  • Customer Type

Households pay more per unit as compared to the industrial entities. The reason is that industrial customers are served with a large volume of electricity at a time.

Which is Cheaper – Solar Power Cost Vs Regular Electricity Cost?

What do you have learned from the above discussion? Let’s consider another straight example to find a cheaper alternative.

Electricity utility rates are approx. 12 cents per KWH in the US. If the average usage of electricity is 911 KWH per month, you need to light your pocket by $114 before fees and taxes. This figure is likely to grow during the extreme summer and winter climates, and also depending upon the area you are living in.

Calculating all the facts, your electricity bill is going to stay between $200 and $300 per month.

On the opposite side, the solar panel system requires only an upfront investment. Calculating the cost, the average is around $0.72 per watt. Additionally, it heavily depends upon your property structure and weather conditions.

The solar panel system pays off the initial amount in the long-run scenario and you will have more savings over time.For the maintenance or other post-installation charges,the solar system has no space on the balance sheet.


The debate between solar power cost per unit in India vs regular electricity cost. The solar system is going to dominate the discussion. By choosing solar energy, you are set to reap benefits in the long-run alongside saving the planet as well.

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