Putting solar panels on your house is a great way to cut back on your electric bill and become less reliant on the power grid. However, a lot of people who own their own homes wonder, “Will I still get an electric bill after installing solar panels?”
The short answer is yes. Even with solar panels, you will likely still receive a bill from your utility company. But there are some key differences in your electric bill before and after going solar.
How Solar Panels Lower Your Electric Bill
Solar panels produce clean electricity from sunlight, which can directly power the appliances and devices in your home This solar electricity offsets the grid electricity you would otherwise have to purchase from your utility company.
Here are the two main ways solar panels reduce your electricity bill:
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Self-consumption – The solar electricity produced by your panels is first used to power your home. This directly reduces the amount of electricity you need to pull from the grid. For example if your home uses 30 kWh per day but your solar panels produce 10 kWh you only need to pull 20 kWh from the grid that day.
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Net metering – Most utilities use net metering, which allows any excess solar production to be exported to the grid. This earns you credits that offset your grid electricity purchases at other times. So if your panels produce 15 kWh but you only use 10 kWh that day, the extra 5 kWh is pushed to the grid to earn credits.
Essentially, your electric meter spins backwards when solar power is exported to the grid. This offsets the cost when your meter spins forwards as you import electricity from the grid.
Why You Still Get an Electric Bill with Solar
While solar panels can drastically reduce your electric bills you will likely still receive a bill from the utility for two main reasons
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Nighttime usage – Solar panels only produce power when the sun is out. At night, you will rely on the grid for your electricity needs.
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Seasonal production – Solar panels produce more electricity in the sunny spring and summer months. Production drops in fall and winter when daylight hours are fewer. So you will pull more from the grid during darker months.
However, even though you still get a bill, your bills will be much lower thanks to the solar electricity that directly powers your home and earns net metering credits. Properly sized solar energy systems can even produce 100% of a household’s electricity needs, making the electric bill very minimal or even zero in some cases!
Calculating Your Electric Bill with Solar Panels
With net metering, calculating your new electric bill with solar panels is straightforward:
Monthly Bill = Cost of Electricity Imports – Value of Solar Exports
For example, let’s say your home imports 200 kWh from the grid, which costs $40 at 20 cents per kWh. But your solar panels export 300 kWh to the grid, earning credits worth $60. Your monthly electric bill would be:
- Cost of Imports: $40
- Value of Exports: -$60
- Monthly Bill: -$20
So your bill went from $40 before solar to -$20 after installing solar panels!
Some key factors that determine your post-solar electric bill:
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Solar system size – More panels produce more electricity to offset your grid purchases
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Household usage – High consumption requires more grid power at night/winter
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Net metering policy – Affects value of solar exports vs grid purchases
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Season – More solar production in summer means lower bills
Frequently Asked Questions
Can solar panels zero out my electric bill?
Yes! With proper solar panel system sizing and net metering credits, your solar production can offset 100% of your grid electricity purchases. You pay your monthly solar loan payment instead of an electric bill.
Will my electric bill go up after installing solar panels?
No, your bills will only decrease after going solar. However, keep in mind that utility rates often increase over time. So while solar locks in lower electric costs, your bill savings may decrease if grid electricity rates rise substantially.
Do I have to be connected to the grid with solar panels?
No, you can go completely off-grid with solar panels and batteries for 100% energy independence. But staying connected to the grid with net metering provides cost savings and a backup power source.
How much can I realistically reduce my electric bill with solar?
Most solar panel systems are designed to offset 50-100% of your household’s average electricity use. Actual savings depend on your specific home energy profile and solar potential.
Start Enjoying Lower Electric Bills Today
Going solar provides greater control over your energy costs while reducing your environmental impact. With the right solar panel system design, you can drastically cut your electric bill and potentially zero it out!
Contact a solar consultant today to start your journey towards energy bill freedom. They can assess your home’s specific solar potential and devise a tailored system to maximize your electric bill savings. Investing in solar panels is sure to pay off for decades to come through lower energy costs and reduced grid dependence.
When Your Bill Looks Too High: 3 Possible Reasons
Sometimes, homeowners call us surprised. In most cases, they’ve just received that first “true up” bill, and the total seems…wrong.
Maybe it looks too high, or they used more electricity than they expected they would. In these situations, it’s easy for a homeowner to get a bit panicked, believing their system isn’t working, or that they made a mistake installing it.
Fortunately, this is seldom the case. Here are a few reasons a solar bill might look too high following the installation of a residential system:
Do You Still Have an Electricity Bill With Solar Panels?
The answer is simple: yes.
But how much do solar panels save on electricity bills?
Here’s how it works:
When you first install your solar panel system, your local utility company will provide you with an option to pay yearly. The annual billing cycle starts the same date your system turns on (not necessarily the date it was installed) and ends a year later. The utility company calls this a “true up” bill.
Here’s what happens on that “true up” bill:
You’ll see a breakdown of how much energy the company has credited to your account, and how much you’ve consumed. You’ll pay the bill annually, although you may receive a quarterly or monthly statement that breaks down your usage and credits.
If you use gas, your solar panels won’t cover the gas portion of your utility usage, so you’ll still need to pay for that as usual.
Eventually, your system may produce enough power that the utility company will owe you money, instead of the other way around. What’s better than solar panels with no electricity bill?