What Happens to Your Electric Bill After You Go Solar?
Solar panels turn your roof into your own personal power plant so you can generate electricity for your house and save money on your electric bills. But there’s a lot of confusion about what happens to your electric bill once you go solar. Will you still get a bill in the mail every month, or will you never have to pay your utility another penny?
In this post, we explain how solar works with your electric bill and what your electric bills will look like once you install solar panels for your home.
Do You Still Have an Electric Bill with Solar Panels?
You will still receive an electric bill after you install home solar panels. This is because solar panels are connected to the electric grid, and when you go solar, you will not stop using the electric grid entirely. Solar panels can only produce electricity when there’s sunlight, so you will still buy electricity from the main grid at night and when it’s too cloudy to use your solar panels. You will also have to pay fixed monthly delivery fees, which every utility customer is responsible for, regardless of how much electricity they consume.
Solar Panels Lower Your Electric Bill
Even though you still pay an electric bill with solar panels, the amount you owe every month will be significantly lower. This is for two reasons:
1. Solar Reduces Your Grid Electricity Consumption
Solar panels power your home directly using energy from the sun. If your system is sized correctly, they will power your entire house during peak sunlight hours. This significantly reduces the amount of electricity you have to buy from the electric grid, reducing your monthly bills.
2. Net Energy Metering Offsets Grid Usage
Under a net metering agreement, solar customers can send the excess electricity their solar panels produce during the day to the electric grid and receive credit from their utility company in return. Your net metering credit can be used to offset the cost of the electricity you buy from the main grid.
California used to have an excellent net energy metering (NEM) policy, but the shift to NEM 3.0 changed things. Under NEM 3.0, you will still be credited for the solar power you send to the grid, but at a significantly lower rate. To maximize your electric bill savings, we recommend installing solar panels with a battery storage system, like the Tesla Powerwall or FranklinWH. With a battery, you can store solar power for later use instead of sending it to the electric grid. When your solar panels are not producing power, you can use your stored energy to run your essentials, minimizing the amount of electricity you buy from the electric grid.
What Your Electric Bill Will Look Like with Solar Panels
Solar panel owners in California receive two types of statements from their utility: a monthly statement and an annual true-up bill.
Monthly Statements
Your monthly statement reflects the amount of money you owe your utility for that particular month. For solar customers in California, monthly statements are generally quite low. They include your fixed delivery charges, which you pay monthly, and show you how you’re tracking toward your annual true-up.
Annual True-Up Statement
Your true-up statement reconciles your energy consumption charges (the electricity you buy from the grid) and your NEM credits. If your energy consumption charges are higher than your credit, you must pay the difference. Any excess surplus is reset to zero.
Have Questions? Book Your Free, No-Obligation Solar Consultation
Going solar looks different for everyone. Taylor Energy offers free, no-obligation consultations so you can find out what going solar will mean for you and your electric bills. We’ll walk you through your options, estimate your savings and payback period, and help you decide whether the investment is worth it for your home. Our team has over 15 years installing solar panels in California and is here to support you throughout every step of your solar journey.
Call (707) 785-8022 or contact us to schedule your free, no-obligation solar consultation and estimate!
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