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Maximizing Savings on Electric Bills with Sunollo Solar Panels
If you’ve explored the option of going solar, you know that the initial cost of solar panel systems can be significant. So, how does this investment translate into savings? The electricity generated by your Sunollo solar panels reduces the amount of power you need to purchase from SP Services. As of the third quarter of 2024, the electricity tariff in Singapore is 32.57 cents per kilowatt-hour (kWh), including GST. When you compare the monthly cost of your solar panels to the amount of electricity they produce, the cost per kWh from your solar panels is often lower than the electricity from your utility.
Save with a Solar Subscription
Initially, it might seem like you’re adding another expense by financing your solar panels. You’ll still receive an electricity bill alongside your monthly subscription fee for the panels. However, the electricity generated by your panels can significantly offset your utility bill, so the combined cost is often less.
To provide a clearer picture, let’s consider an example:
1. Electricity Consumption: Your household consumes 1,500 kWh per month.
2. Electricity Cost from SP Services: At 32.57 cents per kWh, your monthly bill would be approximately SGD 488.55.
3. Solar Panel Output: A typical solar panel system might generate around 1,200 kWh per month, reducing your dependency on the grid by 80%.
4. Solar Subscription Fee: Suppose your monthly loan payment for the solar panels is SGD 300.
In this scenario, your utility bill would drop to about SGD 97.71 (300 kWh from SP Services) plus the SGD 300 subscription fee, totalling SGD 397.71. This results in monthly savings of approximately SGD 90.84, not to mention the environmental benefits of using renewable energy.
Save with an Upfront Purchase
Another option is to buy your solar panel system upfront with cash. This option can be beneficial because you know the system is already paid for, and you’re not paying any additional amount to finance the system overtime. While it may be harder to see immediate monthly savings, the long-term benefits are substantial.
Let’s look at an example that can give you an idea of the savings with solar panels if you buy your solar power system outright:
1. Upfront Cost: Imagine you paid SGD 25,000 upfront to buy your solar power system, and the average lifespan of a solar panel system is roughly 25 years.
2. Monthly Cost Breakdown: Take the SGD 25,000 installation cost and divide it by 300 months (25 years x 12 months) to get an average cost of roughly SGD 83 per month.
3. Electricity Cost Reduction: Similar to our previous example, your solar energy system offsets 80% of your electricity needs. As a result, your electricity bill from SP Services is now around SGD 97.71 per month.
4. Combined Monthly Cost: Add the SGD 83 per month that you paid for your system to the SGD 97.71 per month you pay your utility company, and you’re paying a combined total of around SGD 180.71 per month for electricity.
Remember, SGD 83 isn't an additional monthly expense since you paid for the system upfront. Instead, consider it a return on your investment, as you'll save approximately SGD 307.84 each month on your electricity bill.
Additional Ways to Save with Solar Panels
The savings from installing solar panels aren’t limited to just reducing your utility bill. Here are additional methods to increase your savings:
1. Energy Efficiency: Use less electricity overall to ensure most of your energy consumption is covered by your solar panels. This can be achieved by upgrading to energy-efficient appliances, using LED lighting, and practising energy-saving habits.
2. Battery Storage: Invest in battery storage to save excess electricity generated during the day for use during nighttime or cloudy days, reducing the need to draw power from the grid.
3. Shift Usage to Solar Hours: Maximize the use of electricity during peak solar production hours to fully utilize the energy generated by your panels.
4. Net Metering: Sign up for net metering, if available, to get credit for excess electricity produced by your solar panels that are sent back to the grid.
5. Time-of-Use Plans: Optimize your energy usage according to time-of-use plans to benefit from lower electricity rates during off-peak hours.
Realizing Long-term Savings
Switching to solar energy with Sunollo not only contributes to environmental sustainability but also provides significant financial benefits. By understanding your energy consumption patterns and strategically managing your solar investment, you can achieve substantial long-term savings.
Explore more about how Sunollo can help you save on your energy bills by visiting our blog for detailed insights and success stories from customers who have made the switch.
Ready to see how much you can save with Sunollo? Use our Free Solar Design and Savings Estimate Tool to get started today and take the first step towards a greener and more cost-effective energy solution.
