How Much Can You Save with Solar?

Americans are spending more on electricity than ever before—yet many don’t realize they could be saving thousands by switching to solar. Residential energy costs have climbed steadily over the past decade, putting a growing strain on household budgets. California has seen the steepest hikes in energy costs.

10-Year Electricity Rate Increases for Southern California Utilities (2015–2025)

Over the past decade, electricity rates across Southern California have surged. SCE rates have jumped by 90%, PG&E by over 101%, and SDG&E by 82%. LADWP is also seeing steady increases, with an 11% rise expected in 2025. These steep hikes highlight why more homeowners are turning to solar to take control of their energy costs.

In this article, we break down how much you can save by going solar, what factors influence those savings, and why homeowners in California are often seeing the most impressive returns. From reduced utility bills and tax credits to increased property value, solar energy offers a wide range of financial benefits. We’ll also explore how policies like Net Energy Metering (NEM 3.0) impact your savings potential, and why acting sooner rather than later can maximize your return. Whether you’re just beginning to consider solar or you’re ready to make the switch, this guide will give you a clear picture of the financial upside.

Average Solar Savings in the U.S.

According to EnergySage, the average U.S. homeowner can see between $31,000 and $100,000 of energy savings over the lifetime of a solar panel system. These savings accumulate over 20 to 30 years, largely by offsetting monthly electricity bills with self-generated power. While the range is broad, it reflects the growing affordability of solar technology and the long-term financial benefits of energy independence

A 2025 report by ConsumerAffairs, homeowners can save around $62,219 on utility bills over 25 years after installing solar panels. Many factors influence these savings, like local electricity rates, system size, and available incentives. Notably, states with higher electricity costs, like California, often see even greater savings.

Homeowners in California can save a significant amount by going solar, often more than in any other U.S. state. With some of the highest electricity rates in the country, switching to solar can reduce or nearly eliminate monthly utility bills. Even with recent changes like NEM 3.0, solar remains a smart financial move. Thanks to strong sunlight and rising utility costs, California continues to be one of the best states for going solar.

How Solar Panels Save You Money

1. Significantly Lower Electric Bills

The most immediate benefit of solar energy is a reduced electricity bill. Once installed, your system generates power daily, cutting or even eliminating your utility costs. With California’s high electricity rates, these savings can be substantial.

According to the U.S. Energy Information Administration (EIA), residential electricity prices in the U.S. rose by approximately 26.8% between March 2020 and March 2024. When you install a solar energy system, especially if you purchase it outright or finance it with a fixed-rate loan, you generate your own power at a predictable cost. This removes your reliance on fluctuating utility rates, providing a significant hedge against future electricity price increases.

2. Federal Solar Tax Credit (ITC)

The Federal Solar Investment Tax Credit allows homeowners to deduct 30% of the cost of a solar installation from their federal taxes. That can amount to thousands of dollars in upfront savings.

Plus, California residents may qualify for state and local solar incentives, which increase the return on investment even further.

3. Increased Home Value

According to Zillow, homes with solar panels sell for an average of 4.1% more than homes without them. That’s an additional $20,000 for a $500,000 home, on top of solar energy savings.

4. No Energy Payments with the OC Solar Energy Agreement

The OC Solar Energy Agreement allows homeowners to get solar installed and maintained for free! You only pay for the energy that your system produces. For a limited time, OC Solar will pay for your energy bill! Click here to learn more.

Factors That Affect Solar Savings

Location & sunlight exposure (solar panels in California perform extremely well)

Heavy shaded areas do not produce as well as roofs with direct sun. On the same note, roof angles can impact how much sun your system receives.

Energy usage

Using more energy than your system produces can result in taking in energy from the grid. Running your AC, heating your pool, and charging EVs can increase your energy expenditure.

System Maintenance

Frequently checking your monitoring system is crucial to maximizing your savings. When your solar panels have dust, debris, or your childrens frisbees, they do not produce as much power. This could require you to pull to from the grid, resulting in less money saved and more money spent.

Financing method (cash, loan, or lease)

The amount you spend on a solar system can significantly impact your long-term savings. Buying your system outright can cost more in the short term, but it has better savings in the long run. Choosing an option like the OC Solar Energy Agreement can help significantly reduce upfront costs and save you more in the long run compared to paying your utility company.

Why Now Is the Best Time to Go Solar

Solar panel prices have dropped by nearly 40% over the past decade. Thanks to advancements in technology, increased manufacturing scale, and growing demand, homeowners today can install solar for a fraction of what it used to cost. Government incentives also make now a perfect time to go solar. However, financial incentives won’t last forever.

The Federal Solar Investment Tax Credit (ITC) currently allows you to deduct 30% of your system’s cost from your federal taxes, but it’s scheduled to begin stepping down after 2032. At the same time, California’s Net Energy Metering 3.0 (NEM 3.0) policy has reduced the compensation homeowners receive for excess energy sent back to the grid, lowering the long-term financial return for new solar customers. Locking in your system now ensures you maximize your savings before these incentives decline further.

Right now, the ITC is on the chopping block. The House has already passed the bill and is awaiting review from the Senate. If approved, the ITC will be terminated by December 31st, 2025. Get your solar installed ASAP to get 30% back on your investment.

OC Solar is offering a limited-time offer. We will pay your energy bill for the first 12 months if you get solar with the OC Solar Energy Agreement. That is 12 months of free solar energy! Act now before this deal is gone!

Ready to Go Solar?

Going solar isn’t just a green decision—it’s a smart investment. Join the hundreds of thousands of people who are increasing their savings and protecting themselves from rising energy costs.

Want to find out how much you could save with solar? Contact OC Solar today for a free solar savings estimate tailored to your home.

How Much Money Can You Save with Solar?