Millions of Americans are struggling to keep up with rising electricity bills. But one home upgrade could help households cut costs by tens of thousands of dollars.

A report from EnergySage found that the average U.S. homeowner could save nearly $50,000 over 25 years by installing solar panels. In high-cost electricity states like California and Massachusetts, the savings can exceed $100,000.

That's a big return, especially since the company noted that electricity rates have jumped about 32% over the past decade and are expected to keep rising. When you generate your own energy, you don't pay for the power and shield your household from price hikes.

Solar panels are still a big up-front investment, but prices have dropped. According to EnergySage, a typical 11-kilowatt system costs about $20,500 after applying the federal tax credit. Right now, that credit covers 30% of the installation cost under the Inflation Reduction Act.

That incentive could save Virginia homeowners around $11,000. That being said, the IRA's future is uncertain. Major changes would require a vote in Congress, but the Trump administration has expressed an intent to eliminate these savings. Acting sooner rather than later could make a real difference in the rewards you can reap.

Solar panels don't just save money, either. They also help lower heat-trapping pollution. A 5 kW solar system can cancel out the carbon pollution of a gas-powered car each year.

For many households, solar is just the start. Swapping over to a heat pump or upgrading to a heat pump water heater can add even more savings while helping your home run on cleaner energy.

If you want to know exactly how much you can save when making the switch, EnergySage has a free tool to estimate costs and compare quotes for solar in your area.

If you've been waiting for solar prices to drop before making the switch, you could miss out on savings. With lower system costs, rising electricity prices, and government incentives still in place, now might be the best time to make the move.

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FROM OUR PARTNER Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner. Get Started

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