Homeowners who install solar panels will not get any more power bills. This is one of the most widely held myths in solar. For the most part, solar panel systems in the U.S. are grid-tied, which means that when they cannot generate enough power for the owners, they can still get electricity from the grid.

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Your utility provider will still send you a monthly power bill if you decide to build a grid-tied solar panel system, but how much will that bill be? If I have solar panels, do I still pay for electricity? Do you still have this question circulating in your mind? In this article, we'll go over the main elements that affect how much you'll have to pay your utility provider after installing a solar panel system, like set utility prices, net metering regulations, and solar power generation.

Understanding Your Electric Bill After Solar

A great deal of homes will still get an electric bill even after installing solar panels. This is because the great majority of solar panel systems in the U.S. are grid-tied or continue to be linked to the power grid. Usually, the following items will be on your bill:

Electricity Usage Charges: You will still need to buy some electricity from the grid if your solar panels don't generate enough to meet all of your energy needs.
Grid Connection Fees: Regardless of how much power you use, utilities often charge an annual cost to stay connected to the grid.
Net Metering Adjustments: If your solar system produces more power than you use, you may be able to receive credits that can be added to future bills.
Taxes and Surcharges: State and municipal taxes, together with extra regulatory fees, are subject to some utility firms.

If I Have Solar Panels, Do I Still Pay For Electricity?

Yes, either before or after the solar panels are installed and producing clean energy, you will still get an electric bill. If your solar production balances and replaces the cost of purchasing grid power from your utility, the remaining amount paid on your monthly bills will be substantially decreased, if not negative.

In two ways, solar panels lower the amount paid on your power bill.

First, your home is directly supplied by solar energy, lowering the quantity of electricity you buy from the utility grid. Therefore, you only need to buy 13 kWh of electricity from the grid if you need 19 kWh in a day, and your solar system provides 6 kWh of that total.

Secondly, surplus solar energy may be "exported," or pushed, onto the electrical grid in exchange for credit under net metering. When your panels fail to produce power, you can use this credit to help offset the cost of the grid electricity you buy.

As the graph above shows, suppose your solar system generates 24 kWh of power during the day.

The direct power source for your home's electrical systems is 6 kWh.
The cost of the 13 kWh of power you use from the grid at night is more than covered by the extra 18 kWh that goes into the grid for net metering credit.

The easiest way to see this is that your energy meter spins forward when you import grid power and backward when you export solar energy to the grid. (That's really the how it works!).

After installing solar panels, your utility bill will still be due, but it will just include the tiny amount of grid power that your panels don't produce or offset.

With Solar Panels, How Much Would My Electricity Bill Be?

The size of your system, how much power you use, your net metering policy, and the time of year affect how much electricity you pay when solar panels are installed. Solar systems may often be designed to provide a 100% bill offset, meaning that the homeowner only has to pay for either utility or solar power, not both.

How To Calculate Out Your Solar Power Bill

Calculating your monthly power bill is quite easy with 1:1 net metering, where the cost of your excess solar electricity equals the cost of your grid electricity.
Monthly power bill = value of solar produces - cost of grid electricity imports

Assume you have a solar system that can generate 100% of your typical power demand, 1:1 Net Metering, and a utility rate of 17 cents per kWh.
Let's choose April 2024 as an example month; a related graphic will help clarify things. The new situation is as follows:

For instance, April 2024: Household Consumption vs Solar Production

Your solar energy output and power use in April could look like this:

300 kWh is the total amount of power used in the home.
Without solar, electricity costs $51 per kWh.
450 kWh of solar power generation
120 kWh of electricity that was purchased (imported) from the grid ($20.40)
330 kWh of electricity were exported to the grid.
Electricity exported was worth $56.10 ($0.17 per kWh).

Calculating the final bill:

Electricity imports ($20.40) and electricity exports ($56.10) equal a credit of -$35.70.

The $35.70 credit on your power account may be carried over to the next month since your solar exports are worth more than your imports.
Supporting Chart: Solar Production vs. Household Consumption

image (2).png

The electric bill before and after solar panels:

	Before solar	After solar
Monthly Consumption	260 kWh	260 kWh
Imported from grid	260 kWh	130 kWh
Exported to grid	N/A	480 kWh
Net consumption	260 kWh	-350 kWh
Utility rate	17 cents per kWh	17 cents per kWh
Monthly bill	$44.20	-$59.50

There aren't many things to remember now.

Net Metering Cycles Per Year

Net metering credits have been carried over from month to month in the majority of utilities' yearly billing cycles. Therefore, don't expect your bill to be paid with a $60 check. Instead, when your system produces less power than your house needs in the months of autumn and winter, you will use your $60 net metering credit—along with any additional credits you accrue throughout the spring and summer—to balance your costs.

At the end of the year, you'll have a "true-up" period to account for the difference between your imports and exports.

Charges That Cannot Be Avoided Or Are Set

Many utilities have preset costs or "non-bypassable charges" that solar cannot offset. Regardless of whether you have solar or not, they usually cost $15 to $20 a month.

Not All Utilities Provide 1:1 Net Metering And Flat Pricing.
If your utility offers variable time-of-use (TOU) rates and/or a less advantageous net metering policy, it is more difficult to calculate your solar power cost.

For example, solar exports are often worth around 75% less than the cost of importing power under California's NEM 3.0 solar billing regime. Therefore, a system that can generate all of your power only offsets around half of your bills.

In such a scenario, using battery storage rather than importing and exporting with the grid is the suggested cost-saving measure.

The Impact of Solar Energy on Your Bill

Reduced Energy Expenses
Lower monthly electricity bills are one of the primary advantages of switching to solar power. Depending on the size of your solar system and your energy use, you may see a big decrease in your energy expenditures.
Credits for Net Metering
Homeowners can return surplus power to the grid through net metering schemes offered by several utility providers. When your solar panels aren't generating enough electricity (such as at night or on overcast days), you get credits on your account that can help offset any electricity you buy.
Minimum Utility Fees
To keep grid interaction, most utility companies need a minimum monthly fee, even if your solar panels provide all the power you need. Depending on the vendor you use, this could cost anywhere between $5 and $20.
Variations by Season
Seasonal variations may affect your power cost. While shorter days and less sunlight in the winter may result in higher power use from the grid, your solar panels may generate more electricity than you require during the summer.

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If I have solar panels, do I still have to pay for electricity? In most cases, the answer is yes, but in significantly lesser amounts or occasionally even with a credit. The size of your solar system, its energy usage, net-metering regulations, and changes in the seasons will all affect your electric bill. An efficient solar system may greatly decrease your power expenses and possibly even eliminate your payment. You may optimize your savings and contribute to a more environmentally friendly future by knowing how solar billing operates and utilizing net metering credits.

Your Electric Bill After Going Solar: What to Expect

Your Electric Bill After Going Solar: What to Expect