After one year of using solar panels for an Airbnb in Palm Springs, the author shares insights on costs, savings, and overall value, revealing a significant reduction in electricity bills and a promising return on investment.
In this blog post, I will share my journey of installing solar panels for my Airbnb in Palm Springs, California, and evaluate whether the investment was worth it after one year. With rising electricity costs, I decided to take the plunge and install solar panels, and now I can provide insights on the savings, return on investment, and overall value of this decision.
A year ago, I faced skyrocketing electric bills, with the highest reaching $892 in June 2022. This prompted me to explore solar energy as a solution. Many people are curious about solar panels but are unsure if they are worth the investment. I had similar questions before making my decision, and now, after a year of usage, I can share my findings.
The total cost of my solar system was $20,000, which included:
I opted not to install a battery due to their high costs, which can be around $8,000 each. I applied for solar installation under the NM 2.0 program, allowing me to sell excess energy back to the grid at the same price I purchase it. However, after April 2023, new applicants would only be able to sell back energy at a reduced rate, making battery installation more appealing for them.
The system I installed is relatively small, producing around 12,000 kilowatt-hours (kWh) annually, slightly below the expected 13,000 kWh due to a rainy year. It’s important to note that having solar panels does not eliminate your electric bill entirely; there are still fixed fees and some energy costs associated with being connected to the grid.
To understand the impact of solar panels, let’s look at my electric bills before and after installation. In 2023, my average monthly bill was around $620, which dropped to approximately $253 after the solar system was fully operational. This represents a 60% decrease in my electric bill, exceeding my initial expectation of a 50% reduction.
The only month that puzzled me was September, where the bill remained unexpectedly high. Despite the solar panels being operational, I suspect it was due to increased energy consumption during the hot weather.
Over the course of 2023, I spent about $7,400 on electricity. In 2024, I anticipate my total bill to be around $2,916, resulting in a savings of approximately $4,500. This means that the solar panels will pay for themselves in about 4.4 years. Over a 30-year period, the savings could amount to around $90,000 without considering inflation, and potentially over $200,000 when factoring in inflation.
Throughout the year, I sold back approximately $700 worth of energy to the grid. Interestingly, I was unable to sell any energy during the summer months, despite generating a lot of electricity. This was likely due to high energy consumption from the pool pump, hot tub, and air conditioning during extreme heat.
The decision to invest in solar panels depends on various factors:
For those considering solar, I recommend researching different options and consulting with solar providers to find the best fit for your needs. I have discussed these options in more detail in another video, which may be helpful.
Overall, my experience with solar panels has been positive. The significant reduction in electricity bills and the knowledge that I am using clean energy make it a worthwhile investment. I encourage others to consider solar energy, especially in regions with high electricity costs and ample sunlight. It’s not just about saving money; it’s also about contributing to a sustainable future.
