Does Solar Help With Your Gas Bill? How to Lower Costs

Many homeowners considering solar panels wonder if they will also lower gas bills. Unfortunately, solar panels only produce electricity. They cannot directly power gas furnaces, water heaters, stoves and other appliances that rely on natural gas.

However, solar can still help reduce your gas costs indirectly in a few key ways:

1. Solar Lowers Electric Bills

The electricity generated by solar panels can power lights, appliances, electronics and anything else that runs on electricity. By meeting some or all of your home’s electric needs, solar reduces your electric bill.

For example, solar could pay for:

• Lights
• Refrigerator
• Dishwasher
• TV and electronics
• Well pump
• Electric vehicle charging

The more devices you can run on solar power, the lower your electric bill will be each month.

2. Extra Savings Can Offset Gas Costs

While solar doesn’t directly lower gas usage or prices, the savings on your electricity bill essentially free up additional funds to put toward gas costs.

If your electric bill is normally $100 per month but solar lowers it to $20 per month, you have an extra $80 to allocate each month. You could put those added funds toward paying your gas bill.

So in this way, solar savings indirectly help cover gas costs.

3. Solar Can Power Electric Heating Systems

Many homes rely on natural gas for heating systems like furnaces and water heaters. However, high-efficiency electric options are becoming increasingly popular, including:

• Heat pumps
• Mini split systems
• Electric water heaters
• Electric baseboard heating
• Portable electric space heaters

If you switch from gas heating appliances to electric options, solar panels can completely power them, reducing your heating bills.

4. Solar Incentives Can Fund Gas Upgrades

Thanks to new solar tax credits from the Inflation Reduction Act, installing solar panels and home upgrades are more affordable than ever.

You could use your 26% federal solar tax credit to help pay for new energy-efficient gas furnace or tankless water heater. The tax savings from solar can make these gas appliance upgrades more feasible.

Some additional ways solar can lead to gas savings include:

• Installing an electric heat pump water heater instead of gas
• Adding solar attic fans to improve circulation and reduce AC costs
• Using solar-powered smart thermostats to optimize heating and cooling
• Funding added insulation with solar tax credits to retain heat better

While solar itself won’t shrink your gas bill, strategic electric upgrades and solar savings can help lower your overall energy costs.

Estimate Your Solar Savings

How much could you save by going solar? Solar providers offer free assessments to help you find out.

They will gather details on your utility bills, energy use and home layout. Then they can put together a customized solar plan showing:

• Recommended number of panels
• Estimated first year energy production
• Projected impact on your electric bill
• Total installation costs
• Available incentives and tax credits

With a solar analysis in hand, you can determine:

• Payback period for solar panel investment
• Best ways to apply your new electric savings
• Potential for switching appliances from gas to solar-powered electric

Understanding your potential savings and options will help you make the smartest energy decisions.

Additional Ways to Reduce Gas Bills

While solar primarily lowers electricity costs, you can take other steps to save on your gas bill directly:

Lower Thermostat Temps

Turning your thermostat down just a few degrees in winter can trim gas furnace usage significantly. Set to 68°F while awake and lower while asleep or away.

Insulate

Prevent heat loss by adding insulation to attics, walls, basements, and crawl spaces. Seal air leaks around windows and doors.

Upgrade Appliances

Replace old gas furnaces, water heaters and stoves with new ENERGY STAR models to increase efficiency.

Conserve Hot Water

Take shorter showers, fix leaks, and install low-flow faucets and showerheads to reduce gas water heating costs.

Maintain HVAC Systems

Regular maintenance improves performance and lifespan for gas furnaces and heaters. Change filters and schedule professional tune-ups.

Enroll in Utility Budget Billing

Spread payments evenly throughout the year so winter heating bills aren’t a burden.

Compare Gas Rates Annually

Shop rates to find the best gas plan each year before your contract ends. Lock in lower prices.

While solar panels themselves don’t reduce your natural gas usage or costs, they can lower total energy bills and free up money to help cover gas expenses. Combine solar power with other efficiency upgrades to minimize your home energy costs.