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Solar Panel Cost In 2023 (Homeowner’s Installation Savings Guide)
By Karsten Neumeister /
What Is A Kilowatt-Hour? A Guide to Understanding Your Electric Bill
Here’s what we’ll cover in this guide:
- What a kilowatt-hour is and how it differs from a kilowatt
- How to calculate how many kilowatt-hours appliances use
- How much a kilowatt-hour can cost
- Understanding your electricity bill
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Each product and or company featured here has been independently selected by the writer. You can learn more about our review methodology here. If you make a purchase using the links included, we may earn commission.
What is a Kilowatt-Hour?
A kilowatt-hour (kWh) is a way to measure electrical energy. It is most commonly used to measure how much energy a home or appliance consumes over a given period of time, and is equal to one kilowatt (kW) of power sustained for one hour.
Let’s do the math. First we need to differentiate between a watt and a kilowatt. One kW is equal to 1,000 watts, so a 1,000-watt appliance would use a kWh in one hour. A 100-watt light bulb would take 10 hours to use one kWh, while a 2,000-watt oven would use one kilowatt-hour in just 30 minutes.
Similarly, your monthly electricity bill is measured in kWh and measures the amount of electrical energy that your home consumes over the month. A typical household uses between 800 kWh and 1,200 kWh per month.
Check out this helpful explanation from Enphase Energy to learn more.
SunPower
Best National Provider
Pros
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
Cons
- Expensive
- Customer service varies by local dealer
SunPower designs and installs industry-leading residential solar and storage solutions across all 50 states. With a storied history of innovation dating back to 1985, no other company on this list can match SunPower’s experience and expertise.
SunPower earns its position as the top national installer on our list for a handful of reasons: It installs the most efficient solar technology on the residential market, offers the most expansive service area and backs its installations with a warranty well above the industry standard. All the while, SunPower pioneers sustainability efforts within the industry.
If that weren’t enough, SunPower systems come packaged with products all manufactured in-house by its sister company, Maxeon. This means that your panels, solar cells, inverters, battery and EV chargers are designed to work together and are all covered under the same warranty.
SunPower’s biggest downside? Its high-efficiency panels are considerably more expensive than most of its competitors’ products. However, its powerful panels are workhorses that make up for the initial cost with more backend production (think about this like spending more money for a car that gets more miles per gallon).
Facts and Figures: SunPower
| EcoWatch Rating |
|---|
| Better Business Bureau (BBB) Rating |
| Year Founded |
| Average Cost ($-$$$$$) |
| Solar Services |
| Brands of Solar Equipment Offered |
| Warranty Coverage |
| 5 |
| A+ |
| 1985 |
| $$$$ |
| Solar Panels, Solar Batteries, EV Chargers, System Monitoring |
| SunPower Panels |
| 25-year all-inclusive warranty |
Blue Raven Solar
Best Solar Financing
Pros
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
Cons
- Doesn't offer solar batteries (coming 2022)
We like Blue Raven Solar because it understands that, for most homeowners, the cost of solar presents the biggest barrier to entry.
For that reason, Blue Raven Solar developed an innovative solar financing plan that offers in-house, flexible, zero-money-down options. The results speak for themselves, as Blue Raven Solar is now one of the fastest-growing solar companies in the nation and was recently acquired by SunPower. Its BluePower Plus+ plan (exclusive to Blue Raven) mimics the flexible structure of a lease while still providing the greatest benefits of owning your system.
Eligible homeowners enjoy 18 months of solar power before having to pay their first bill. When coupled with the federal solar investment tax credit (ITC), the initial energy savings can offset more than a third of the overall cost of a system before requiring a dollar down.
In contrast, other installers can only offer similar financing through solar leases, PPAs or third-party providers (such as Mosaic or Sunlight). Third-party loan providers can complicate the process, while opting for a loan or PPA will disqualify you from some of solar’s biggest benefits (additional property value, federal solar tax credit and local solar incentives).
Facts and Figures: Blue Raven Solar
| EcoWatch Rating |
|---|
| Better Business Bureau (BBB) Rating |
| Year Founded |
| Average Cost ($-$$$$$) |
| Solar Services |
| Brands of Solar Equipment Offered |
| Warranty Coverage |
| 4.5 |
| A+ |
| 2014 |
| $$ |
| Solar Panels, System Monitoring |
| Trina Solar, Canadian Solar, SolarEdge, Silfab, SunPower |
| 25-year manufacturer warranty; 10-year workmanship warranty, 2-year production guarantee |
ADT Solar
Best Warranty Coverage
Pros
- Industry-leading warranty coverage
- Expansive service area
Cons
- Some reported communication issues
- No leases or PPAs
ADT Solar sets the industry standard for warranty coverage by including a multifaceted guarantee, making it one of the top installers for homeowners who want added peace of mind.
Its warranty coverage includes all of the following for 25 years:
- Power Production Guarantee: Also known as a performance guarantee, this ensures your solar system will produce the amount of electricity that’s outlined in your proposal, or ADT will write you a check for the difference.
- Labor Guarantee: This covers any issues with the installation of your system and is also known as a workmanship warranty.
- Panel Module Performance Guarantee: This is what ADT Solar refers to the manufacturer warranty as, and it ensures that any manufacturing defects are repaired or your ineffective panels replaced.
- Enphase Microinverters Guarantee: This backs the performance of your inverters.
Though in recent years other solar companies have started to offer similar guarantees, ADT Solar has been at it since 2008, performing over 30,000 installations across the country.
Facts and Figures: ADT Solar
| EcoWatch Rating |
|---|
| Better Business Bureau (BBB) Rating |
| Year Founded |
| Average Cost ($-$$$$$) |
| Solar Services |
| Brands of Solar Equipment Offered |
| Warranty Coverage |
| 4 |
| A- |
| 2008 |
| $$$ |
| Solar Panels, Solar Batteries, EV Chargers, Energy-Efficiency Upgrades |
| Silfab, Panasonic and others depending on location |
| 25-year all-inclusive warranty |
Kilowatt-Hour vs. Kilowatt
We’ve clarified that kilowatt-hours measure a unit of energy. A kilowatt (kW), on the other hand, is a unit of power. Power in this context refers to the rate at which something can produce, transfer or consume electricity.
We like to think about it this way: A kilowatt would refer to the horsepower or potential speed of a car, while kWh would refer to the actual distance the car has driven over a period of time.
When speaking about solar panel systems, the number of kilowatts refers to the maximum amount of energy the system can produce at any given time. For example, you might see a solar panel system described as a 10 kW system.
If you have a 10 kW system, it can theoretically produce 10 kW of power continuously. Your home could then draw from that energy source, providing the kWh that your home consumes over the day.
What Can One Kilowatt-Hour Power?
Here are some common examples of appliances that might use one kWh. The exact power levels will vary based on the efficiency of each product. The more efficient the appliance, the less energy it will consume.
- 100-watt light bulb for 10 hours
- Energy-efficient 40-watt light bulb for 25 hours
- 50-watt alarm clock for 20 hours
- 2,000-watt dishwasher for 30 minutes
- 200 to 400-watt fridge/freezer for around 3 hours
- 80-watt LED TV for 12.5 hours
- 10-watt router for 5 days
- 1,450-watt air fryer for around 40 minutes
How Do I Calculate How Many kWh an Appliance Uses?
While your home’s air conditioner or heating system will use the most electricity (close to 50% of the bill) throughout the month, your electrical appliances are a huge factor in the cost breakdown of your total energy usage. Dryers, refrigerators, water heaters and dishwashers are often the biggest culprits.
Many major appliances will have a tag or EnergyGuide label that lists the appliance’s model number, voltage, the location where it was made and the range of watts it can consume. Once you collect the wattage of your daily appliances, it’s fairly easy to calculate the electricity consumption of your home on a daily, monthly or yearly basis. Here is an example:
| Watts | Hours Used Per Day | Watt-Hours Per Day | |
| Dishwasher | 1,200 | 2 | 2,400 |
If your dishwasher is a 1,200-watt device and it runs for two hours every day, it uses a total of 2,400 watt-hours a day. (watts x hours used per day = watt-hours)
| Watt-Hours Per Day | kWh Per Day | kWh Per Month | |
| Dishwasher | 2,400 | 2.4 | 72 |
Once watt-hours per day are calculated, divide the number by 1,000 to find how many kWh of energy are used per day. You can then multiply that number by 30 or 365 to find its monthly or yearly consumption. (Watt-hours / 1,000 = kWh per day) x 30 = kWh per month
Online resources and calculators can help expedite the process. A spreadsheet could also be helpful, using the above calculations.
It is important to remember that some appliances still use energy in standby mode. This means if an electronic like a TV or laptop is left on standby, it is still consuming (albeit a small amount) power and adding kWh to the monthly electricity bill.
If you’re due to replace an appliance soon, investing in an energy-saving appliance can generate large savings over time.
How Many kWh Does a House Use Per Day?
The average U.S. home consumed 887 kWh of electricity per month in 2020.1 This breaks down to around 30 kWh per day.
How many kWh your household uses will depend on many factors, including:
- Size and age of your home
- Type, number and age of your appliances
- Your area’s climate
- How you heat or cool your home
- How many people live in the residence
- How much time you spend at home
A single occupant working full-time in an efficient home could consume as little as 6,000 kWh per year. On the other end of the spectrum, four college students sharing an old four-bedroom house could use roughly 12,000 kWh per year.
What Does a kWh of Electricity Cost?
The national average rate for electricity is around 13 cents per kWh but varies depending on where you live. If you happen to live in a deregulated market, the cost can depend on your retail electricity provider. The U.S. Energy Information Administration (EIA) reports on average prices by state.2
For our examples, we will use the national average rate.
If electricity costs 13 cents per kWh, then a 100-watt light bulb (0.1 kWh) will cost you $0.013 for every hour it is on (cost per kWh x energy use in kWh = hourly cost).
| Convert to kW | Cost Per kWh | Total Hourly Cost | |
| 100-watt light bulb | 0.1 | $0.13 | $0.013 |
Of course, electricity bills come monthly and not by the hour, so there are still a few calculations needed to estimate monthly costs.
- Multiply your total hourly cost by the hours per day the light bulb is used. For this example, let’s say it’s 3 hours.
$0.013 x 3 hours = $0.039 per day
- Multiply by 30 to calculate the monthly average of the appliance
$0.039 x 30 days = $1.17 per month
- Repeat this for all appliances and light bulbs in your home
- Add up the total to calculate the estimated monthly electricity costs in kWh
The EnergyGuide label on newer appliances includes its estimated yearly electricity usage. You can multiply that number by your rate per kilowatt-hour and find the cost to use that device.
Learn More About Best Solar Panels by Watt
What Determines Electricity Cost Per kWh on an Energy Bill?
As we’ve already discussed, the average cost per kWh in the U.S. is 13 cents, and the average household consumes 887 kWh per month. This means the average electricity bill is around $115, without any additional fees or charges from an electric company.
When it comes to your monthly bill, your kWh rates could depend on all of the following:
- Your electricity provider
- The terms of your contract
- The electricity prices in your state
- The amount of power you consume on average
- If your electricity comes from a renewable energy power plant
Learn More About Purchasing Solar Panels
How to Find Your Electricity Usage
The easiest way to see how much electricity you use is to simply check your electricity bill. Your bill will show how many kilowatt-hours you’ve used in your home each month. Your electricity provider should also offer online tools to monitor your usage. Some companies have even started to add small bar charts to the monthly bill to visually show monthly trends and patterns.
If you have a Smart Meter, your electricity provider probably also provides online tools for you to track your power consumption. Some can send out weekly status reports to your email and forecast how much you might use in the upcoming week.
Here’s an example of where you might find your monthly electricity usage.
Can I Use kWh to Compare Energy Costs?
Yes, if you live in an area with deregulated electricity, you can use your estimated or billed monthly kWh to compare energy costs. This is where understanding the number of kWh that you consume per month comes in handy. Simply multiply the kWh you typically use by the electricity rate from the provider you’re considering to get an idea of what your monthly bill would be.
However, be on the lookout for any other fees that might not be reflected in the rate plan. This might include signup fees, early termination fees or plans that switch from fixed rate to variable rate automatically.
If you use an energy cost comparison tool, you can accurately calculate your total potential savings by entering energy use by kWh.
Comparing authorized solar partners
Average cost
Pros
Cons
BBB Rating
Year founded
Service Area
Brands of Solar Equipment Offered
Warranty Coverage
-
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
A+Best National Provider1985SunPower Panels25-year all-inclusive warranty
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