My Solar Panel Experience: One Year Later
Why I Went Solar
Electric bills in Palm Springs were skyrocketing, with my highest bill reaching $892 in June 2022. I decided to invest $20,000 in a solar system with 20 panels and a solar inverter but opted out of a battery due to the high cost. My timing allowed me to qualify for NM 2.0, letting me sell excess energy back to the grid at the same rate I bought it.
Solar System Overview
- Cost: $20,000
- System Size: 12,000 kWh/year (actual production due to rain)
- Key Notes:
- No battery included (saves ~8k per unit).
- Utility grid connection fees still apply.
- Slightly smaller system than needed for full energy independence.
Pre-Solar Bills (2023)
- Average Monthly Bill: $620
- Annual Total: $7,400
Post-Solar Bills (2024)
- Average Monthly Bill: $253
- Annual Total: ~$2,916
- Savings: ~$4,500/year (60% decrease on average).
Return on Investment (ROI)
- Payback Period: 4.4 years.
- 30-Year Savings: ~$133,000 (without inflation).
- Inflation-Adjusted Savings: ~$212,000.
Selling Energy Back to the Grid
- Total Sold: $700/year (pre-NM 3.0 rates).
- Challenges:
- Minimal summer returns despite higher generation.
- Summer energy use remains high due to pool pumps, hot tubs, and air conditioning.
Key Takeaways
- Worth It for High-Electricity Cost Areas: States like California and Hawaii are ideal for solar.
- Longevity Matters: Solar is best if you plan to stay in your home long-term (10+ years).
- System Size and Batteries: A larger system or battery may be needed for full independence.
- Clean Energy Benefits: Beyond cost savings, solar contributes to sustainability (e.g., charging your EV).
Also read - Do Solar Water Pumps Need Batteries? How many batteries are needed in a 1HP water pump for a solar system?
Conclusion
Switching to solar was a worthwhile investment for my Airbnb, cutting electricity costs by 60% and setting the stage for significant long-term savings. If you’re in a sunny, high-cost state, solar can be a no-brainer—just evaluate your energy needs and financing options carefully.
