Can A Solar Roof Save You Money?

Energy Prices on the Rise

In recent years, there has been a general trend of increasing energy prices across the United States. This increase in prices is due to several factors. Some of the reasons for increased electricity prices are the increase in demand for energy due to population growth, economic development, and changes in consumer behavior. With increased remote work and e-learning, the average household energy usage has risen considerably over the last few years.

With higher electricity demand, some utility companies are moving to a pricing model that increases the cost of electricity per kWh during certain times of the day. This increase is called Peak Usage Hours, and the price per kWh can be significantly higher than during Non-Peak Hours. In some cases, it is 2x higher. Colorado’s average Cost Per Kilowatt Hour ($/kWh) is $0.15/kWh. This is lower than the national average; however, increased electricity usage at home with streaming, remote work, and potentially charging electric vehicles can quickly add up.

Annual Savings

While the initial cost of installing a solar roof may be daunting, it’s important to consider the long-term cost savings and any potential employer rebates or tax incentives. Investing in a solar roof provides you with the safety and security of a roof, and each month the savings that build up help you recoup the initial investment in your home. Plus, once the cost of your system has been recouped, you continue to get the financial benefits of the energy that your solar roof generates. Depending on how much energy your roof generates – and with Colorado’s typical 300 days of sunshine per year, you’ll likely generate a good amount –  your savings over the GAF estimated 25-year lifetime of your solar roof may be more than what you initially paid for it.

Deciding how much you want your solar roof to offset the cost of your electricity bill plays a significant role in how much savings you see over the lifetime of your roof. Smaller kW systems will offset less of your overall electricity usage. These smaller kW systems cost less, which means that you’re able to recoup the cost of your solar quicker when you include energy savings and tax credits.

Suppose you’re considering adding a solar roofing system to your home. In that case, you should carefully evaluate your energy needs and costs, as well as the potential benefits and costs of solar roof installation, before making a final decision.

Net Metering

Net metering is a billing system that allows residential and commercial customers who generate their electricity from solar panels or other renewable energy sources to receive credit for any excess energy they produce and put back onto their utility provider’s electrical grid. The extra energy is measured by a meter and credited to the customer’s account, which can then be used to offset the energy they consume from the grid when their renewable energy source is not generating enough electricity.

Under net metering, the customer pays only for the net energy they consume from the grid, which is the difference between the energy they generate and the energy they consume. If more energy is generated than consumed, the excess energy is credited back to the customer’s account and is carried into the next billing cycle. 

Net metering policies vary from state to state, with most utility companies having different requirements to qualify for the program. Many utility companies participate in net metering programs, but it’s important to check with your electricity provider to ensure your home qualifies.

What’s Next?

Understanding if adding a solar roof will save you money in the long run, is an essential factor to consider before adding a solar roof to your home. First, you should get as much historical electricity data about your home as possible. Understand how much you use not only annually but also seasonally. Then look at how much energy you can generate on your roof and determine how much of your electrical bill you would like to offset with your new solar roof. Deciding on this mix of factors helps you understand your utility needs so you can make an informed decision about your new solar roof.

The team at Holladay Grace was handpicked by GAF Energy as the first roofing contractor in Colorado Springs to be GAF Solar certified. Since 1979, Holladay Grace has been serving the roofing needs of the Front Range.

Are you interested in solar? Contact us for a free roof inspection today.