Solar Power vs. Electricity: Which One Saves You More in the Long Run?

The debate on solar Power vs. electricity has been ongoing for a long time.

Can switching to solar energy cut costs, or is it just another overhyped trend? How high is the price of solar installation, and when do savings finally materialize?

This article will answer all the questions you have in your mind. We’ll discuss which of these two power sources is cheaper in detail. We'll also compare solar energy with fossil fuels. Finally, we'll answer different questions people have about solar vs electricity.

So, let's start this article.

Part 1: Solar Power Cost vs. Electricity Cost

What’s the only thing preventing people from using solar energy? The answer is clear. It’s the high upfront cost. No one wants to pay that much of an amount if the benefits are not clear.

Key Takeaways:

• Initial Investment in Solar: For an average 11kW system in the US, the cost can range from around $29,810 before incentives.
• Federal Tax Credit: The federal solar tax credit can cover30% of the system cost. It will reduce your initial outlay to about $20,552.
• Long-Term Savings (Solar): After the payback period of 7.1 years, solar gives almost free energy. Over 25 years, you can save between $31,000 and $100,000in electricity costs. Plus, your house has a higher value after installing a solar system.
• Monthly Electricity Bill (Traditional): According to ElectricChoice, the average electricity rate in the U.S. is 54 ¢/kWh.An average U.S. household uses 899 kWh of electricity each month. It makes an electricity bill of $148.69 every month. These costs are expected to rise over time.

Detailed Cost Comparison: Solar Power

Installing a solar panel system involves a significant initial investment. The cost varies based on system size, components, and installation complexity.

The average per watt of solar power in the U.S. is around $2.50 - $3.50 per watt. At this rate,

• A 6 kW system costs around $15,000 - $21,000 before incentives.
• For an 11kW system, prices range from $25,000 to $35,000 before incentives.

You get additional Federal tax credit, state incentives, and net metering benefits at this cost. The Federal tax credit alone is 30%, significantly reducing the upfront cost of solar.

You can finance this initial cost through various methods:

1. Cash Purchase: Paying upfront in cash provides immediate ownership and maximizes long-term savings.
2. Solar Loan: Securing a solar loan allows you to finance the system over time. Loan terms will affect your monthly payments and overall cost.
3. Solar Lease or Power Purchase Agreement (PPA): You pay a monthly lease fee to use the solar system. In a PPA, you agree to purchase the power generated by the system at a set rate. While these reduce initial expenses, they might result in less long-term savings.

Factors Influencing Solar System Costs

These factors can influence the final price of your solar system:

• System Size: Larger systems cost more but also produce more electricity.
• Panel Type: Premium, high-efficiency panels can increase costs.
• Inverter Type: String inverters are generally less expensive than microinverters.
• Roof Complexity: Complex roof shapes or orientations can increase installation labor costs.
• Location: Permitting fees and labor costs vary by location.

After this initial investment, the maintenance cost of solar energy is minimal. You just need regular cleaning of the solar panels. Inverter replacement, on the other hand, is only required every 10-15 years.

If you spend almost 250$ on electricity every month, you’ll balance the upfront cost in 7 years. After the payback period, it gives electricity nearly free of cost.

Detailed Cost Comparison: Traditional Electricity

There are no upfront costs associated with traditional electricity. You simply pay your monthly bills as you consume electricity. Utility companies manage the infrastructure.

The rates of electricity vary by state. According to ElectricChoice, the rates are:

• California: 19.90¢ / kWh (Feb 2025)
• Hawaii: 32.76¢ / kWh (Feb 2025)
• Idaho: 10.58¢ / kWh (Feb 2025)
• Massachusetts: 21.11¢ / kWh (Feb 2025)
• Utah: 10.63¢ / kWh (Feb 2025)
• US Average: 16.54 ¢/kWh

You have to pay these prices continuously depending on your electricity usage. The monthly bills are also affected by tariff increases. Also, the Grid electricity is subject to outages and price increases. There are no incentives for traditional electricity.

So, which one is cheaper in the long run?

Solar is cheaper in the long run. However, it may have higher upfront costs. Once you are done with the initial investment, your electricity is free. On the other hand, your traditional electricity prices tend to rise.

Now that you know the cost difference between Solar vs Electricity, let's move on. It's time to compare solar power with the energy that makes electricity.

Part 2: Which Energy Source Is Better: Solar Power or Fossil Fuels?

We all need energy to keep our lights on and our homes comfortable. But where should that energy come from? Solar? Fossil fuels? It's a big question now. Fossil Fuels have contributed to energy production for a long time. Solar energy is a relatively newer method of energy production.

1. Environmental Impact

Solar Energy:

Solar power is a clean source of energy. After someone has installed solar panels, there’s no need to worry about greenhouse gases during energy production. It causes no air, water, or other type of pollution.

However, the manufacturing process of solar panels may contribute a little to environmental pollution.

Fossil Fuels:

All the sources of fossil fuels like oil, coal, or natural gas cause environmental pollution. Their combustion converts them into a lot of harmful gases. These gases not only cause the greenhouse effect but also cause respiratory issues.

2. Efficiency and Technology

Solar Energy:

Modern photovoltaic (PV) panels can convert about 20% of solar energy. This fact has already been proved by research at Michigan University. 20% is when we are talking about commonly used panels. With continuous advances, some advanced panels reach up to an efficiency of 40%.

Fossil Fuels:

Fossil fuel power plants have seen improvements over time. Ipicea says the Combined cycle gas turbines can achieve 50-60% efficiencies. However, fossil fuel extraction, processing, and transportation also consume energy.

3. Resource Availability

Solar Energy:

Every year, the sun rises on the same day at the same time. It never comes late, nor takes a leave. If we exclude rainy and cloudy days, solar energy will be inexhaustible.

Fossil Fuels:

Fossil fuels are not only finite. One day, all these fuels will be depleted entirely. They are also unevenly distributed geographically. That’s why geopolitical tensions and price volatility are always present regarding these fuels.

4. Cost Considerations

Solar Energy:

In 2025, installing solar panel systems cost around $18000-$43000 on average. It depends on the system size, location, and the government incentives.

However, we have already discussed in Part 1 how it will save money in the long run.

Fossil Fuels:

The infrastructure for using fossil fuels is already installed in most of the world. People just have to pay monthly depending on the power they need.

However, their long-term costs are unpredictable. Factors beyond local control also influence them.

5. Maintenance cost

Solar Energy

After paying for upfront costs, solar energy has almost no maintenance cost. You just need to change the inverter every 10-15 years.

Fossil Fuels

Fossil fuel power plants involve complex machinery, fuel processing systems, and waste management infrastructure. They need regular upkeep of turbines, boilers, pipelines, and pollution control equipment. They also require continuous fuel supply and waste disposal.

Here's a Table to Make It Clear:

So, Which is Better?

Solar power is the better long-term choice for our planet and our wallets. It's clean, affordable, and will never run out. In contrast, fossil fuels cause pollution and are a finite energy source.

We have almost discussed everything. However, let's be straightforward for now. We will now answer simple questions about solar vs. electric power.

Part 3: Common Questions About Solar Power

Solar power is becoming increasingly popular for homes. However, it’s still comparatively a newer source of power. If you're considering going solar, it’s natural to have many questions about it. Surprisingly, most people have the same questions in mind. Before we answer the most common ones, let’s see if your house suits solar.

Q: Is My House a Good Candidate for Solar Panels?

Here are some factors to consider, before going solar:

1. Angle of Roof

• South roofs get maximum exposure to sunshine.
• West and east-facing roofs are suitable but can provide slightly less energy.
• North roofs generally produce the minimum amount of solar power.

2. Roof Material

Solar power works with asphalt shingles, metal, tile, composite surfaces, and other roof types. However, your roof must last at least 25+ years.

3. Roof Size

You must have an adequate unshaded space for solar panel installation.

4. Sunlight Availability

Sunny locations produce maximum solar output. However, cloudy areas can also produce adequate benefits.

5. Financial Incentives

Check for federal, state, and local tax credits, rebates, and net metering policies. They can drastically reduce the cost of solar power.

6. Electricity Usage

Solar can provide significant savings if you have high monthly electricity bills.

Q. How Much Power Can My Panels Make?

Solar panel power generation in the USA varies by location and system specifics. A typical 400W panel in a sunny US could generate about 1.6-2.4 kWh daily. This estimate is based on California. It may fluctuate depending on the regional solar irradiance and weather patterns. System efficiency and panel type also play a role in the final output.

Q: Is Solar Only Useful in Sunny Areas?

Not at all. Sunlight in direct rays improves efficiency. Still, solar panels can work effectively under moderate and cloudy weather. Better technology for solar cells ensures higher energy conversion rates. Further, government subsidies for less sunny places can also neutralize up-front costs.

Q: How Reliable is Solar Power for Homeowners?

Solar panels are designed to last, usually with warranties that cover 25+ years. For even greater reliability:

• Battery storage systems enable homeowners to save surplus energy for nighttime or power outages.
• Grid-connected systems provide seamless electricity access with backup power at all times.

Part 4: Start with a Solar-Powered Security System

Going all-in on solar is a big step. Why not start smaller? Solar-powered security cameras are a great way to see what solar can do. Plus, they help keep your home safe.

Here are two cool options from eufy:

SoloCam S340:

This camera has two lenses, so you get a broader view. It records in 3K resolution—super clear! The solar panel keeps it powered 24/7. It can pan, tilt, and zoom so you can see everything. No wires are needed!

4G LTE Cam S330: 

Don't have Wi-Fi? No problem! This camera uses 4G and Wi-Fi. It records in 4K, which is even more precise than 3K. It also has pan, tilt, and zoom features.

These cameras are easy to use and good for the environment. They're a great way to try solar and see if it's right for you.

Conclusion

The answer to solar vs electricity must be clear if you have read the whole article. The initial investment in solar sounds like a lot. However, after a payback period of around 7 years, your electricity will be free. In 25+ years, solar power will save you a lot of money. It protects you from volatile electricity prices, provides energy independence, and even increases property value.

FAQs:

Q1. How much can I save by going solar?

In 25 years, solar might cut your energy bills by anywhere from $31,000 to $100,000. The number varies depending on where you live, how much energy you use, and what electricity costs in your area. However, your electricity is free after your payback period (usually 5-8 years).

Q2. What are the largest expenses for installing solar panels?

Your most significant initial outlay is the system itself. Panels, inverters, racking, and labor for installation account for most of the expense. A 6kW system costs between $15,000 to $21,000 upfront before incentives.

Q3. How Long Do Solar Panels Last?

Most solar panel systems operate at peak efficiency for 25-30 years. However, don’t mistake that for an expiration date. Even after decades, they continue producing substantial energy.

Q4. How Do Government Incentives & Tax Credits Lower Solar Costs?

The Federal Solar Tax Credit cuts 30% off the cost of your system. Also, the state & local Benefits include rebates & grants. Even property tax breaks make solar that much sweeter. Selling back unused energy to the grid even makes your solar panels a cash-generating asset.