Is a Partial Offset with Solar Panels Worth It?

When it comes to solar energy, most people picture a roof covered entirely with solar panels, leading to a completely self-sufficient home. But what if your roof space is limited, your budget is tight, or your energy needs fluctuate? Can installing solar panels that only partially offset your energy consumption still be worth it?

The Basics of Solar Offsets

To start, let’s clarify what a partial offset with solar panels means. In simple terms, it’s when your solar panel system generates only a portion of the electricity your household consumes. Instead of covering 100% of your energy needs, you might only cover 25%, 50%, or 75%. 

So, is this approach financially beneficial? Let's dive in.

The Financial Perspective

1. Initial Costs

A partial offset system requires fewer panels, which means lower total costs. This can be a significant advantage if you're on a budget. While a full system might seem ideal, the reduced cost can make solar energy more accessible.

2. Savings & Payback Period 

The savings - both short term and long term, as well as payback period—the time it takes for the savings on your energy bills to cover the initial investment—are proportional to the amount of your electric bill your panels are offsetting. 

For example, if your electric bill is $500, and you install enough solar panels to offset 50%, you are eliminating $250/month of the electric bill. Let’s say you replace that $250/month that is being covered with a $190 solar payment, you are still saving $60 per month, regardless of the remaining amount of power that you are still purchasing from the utility. Savings will also grow over time as the 50% offset with solar would have become more and more expensive with utility rate increases if you didn’t have solar offsetting it. The payback period will be nearly identical whether they are offsetting 20%, 50%, or 100%, since the savings and costs are proportional. 

To put it another way, if you are set up with a solar system offsetting 100% of your electric usage and you are projected to save $110,000 over the next 25 years compared to what you would pay to the utility for that amount of kWh, and then you double your energy usage, you are still saving $110,000 in the amount you are offsetting with solar.

3. Energy Bill Reduction:

Even a partial offset can lead to noticeable reductions in your energy bills. Suppose your system offsets 50% of your usage. In that case, you're essentially halving the amount you pay to your utility company, which adds up to significant savings over time. Think about it this way, would you rather pay 100% of a bill that always goes up without your control, or would you rather that be reduced down to 50% with the other half locked in at a low monthly payment that can eventually be paid off?

4. Tax Incentives and Rebates:

Many governments offer incentives for solar installations, which often apply regardless of the system size. This means you can still take advantage of federal tax credits, state rebates, and other financial incentives even with a partial system.

Practical Considerations

1. Space Constraints:

Not all roofs are created equal. If your roof is small or shaded in certain areas, fitting a full system might not be feasible. A partial system allows you to utilize the space you do have effectively.

2. Future Expansion:

Starting with a partial system doesn’t mean you’re locked in forever. Many systems are designed to be expandable. As your budget allows or as technology advances, you can add more panels to increase your offset.

3. Energy Consumption Habits:

A partial system might encourage more mindful energy use. Knowing that you're generating a portion of your electricity from solar can make you more conscious of your consumption, leading to further savings and environmental benefits.

Real-World Scenarios

Consider two households: 

The Smiths have a large, energy-hungry home but a limited budget. They install a system that offsets 50% of their energy use. Their initial monthly payment is manageable, and they immediately start seeing savings on their energy bills, reducing their long-term expenses. 

The Johnsons live in a smaller house with limited roof space. They opt for a system that offsets 30% of their energy use. While it’s not a complete solution, it’s a significant step towards sustainability, and they enjoy the proportional savings as well as the environmental benefits of reduced carbon emissions.

Conclusion: Is a Partial Offset Worth It?

Absolutely. A partial offset with solar panels can be a smart, cost-effective, and environmentally friendly choice. It makes solar energy accessible to more people, provides substantial financial savings, and contributes to reducing our reliance on fossil fuels. 

The savings and costs are also proportional, and paying an average cost of ~$0.05/kWh over the lifetime of the system for ANY percentage of your energy makes more sense compared to paying $0.28 (Average Current New England Rates as of 2024) and rising 5-6% annually. 

By starting with a partial system, you're taking a significant step towards a greener future, with the flexibility to expand as your circumstances change. Every bit of solar energy saves you money and contributes to a more sustainable world, and that’s definitely worth it.