The biggest reason most homeowners install solar panels is the financial savings. Solar power can cut your electricity usage and energy bills dramatically. In fact, solar panels often produce more energy than a household consumes.
But a constant question many people ask is “Do you still pay electricity bills with solar panels?”
Some solar companies will say no, solar power totally eliminates your electricity bills. However, this is not totally true. We will explain why.
SOLAR OFTEN DOES NOT TOTALLY ELIMINATE ELECTRICITY BILLS
The size of your solar panel system and how much electricity usage it offsets is the largest factor in reducing your electricity bill.
By producing more of your own electricity, you are offsetting the amount of electricity you will have to pay for overall.
On top of producing enough electricity for your home, you can also produce excess electricity that gets pushed onto the energy grid. Again, this is where net-metering is your friend. Excess electricity you push onto the grid can earn you energy credits, which can be used towards future energy consumption.
But remember, even with net-metering and a 100% solar offset of your electricity usage, you will likely still have to pay basic fees and charges for being connected to the energy grid.
THE SIZE OF SOLAR PANEL SYSTEM AFFECTS YOUR ELECTRICITY BILL
The size of your solar panel system and how much electricity usage it offsets is the largest factor in reducing your electricity bill.
By producing more of your own electricity, you are offsetting the amount of electricity you will have to pay for overall.
On top of producing enough electricity for your home, you can also produce excess electricity that gets pushed onto the energy grid. Again, this is where net-metering is your friend. Excess electricity you push onto the grid can earn you energy credits, which can be used towards future energy consumption.
But remember, even with net-metering and a 100% solar offset of your electricity usage, you will likely still have to pay basic fees and charges for being connected to the energy grid.
SOLAR NET-METERING CAN AFFECT YOUR ELECTRICITY BILLS
Net-metering is a billing mechanism that allows a household to accumulate energy credits for any excess power they put onto the energy grid.
Some utilities will provide a 1:1 energy credit, meaning for every 1 kW of electricity you push onto the grid, you will receive 1 kW of energy credits. These rates vary by utility company.
These energy credits can be accumulated within a yearly billing cycle and used towards future energy consumption.
Net-metering is great for areas affected by seasonal changes in weather. For instance, households in the Northwest have cloudy, dreary autumns and winters. But thanks to net-metering, those solar households can bank energy credits during the sunny spring and summer months, then use those energy credits later in the year when they aren’t producing as much solar power.
In this way, solar households can drastically reduce their electricity bills and totally offset their energy usage, but the basic fees and charges will still apply to their bills.
Read more about solar net-metering and how it can affect your decision to install solar panels.
OFF-GRID SOLAR CAN ELIMINATE YOUR ELECTRICITY BILLS
Off-grid solar panel systems are not connected to the energy grid, which means no monthly electricity bill from the utility company.
These systems store excess electricity within batteries, and the stored electricity can be used when the solar panels are not producing enough electricity for the home.
Off-grid solar panel systems are often more expensive than grid-tied solar panel systems. This is because off-grid systems require more equipment, namely batteries, and more labor.
Off-grid solar panel systems are often more limiting as well because households are limited by the amount of energy they can store in the batteries. Grid-tied solar panel systems to not have this issue because they can pull needed electricity from the energy grid if needed.
SO, DOES SOLAR POWER ELIMINATE YOUR ELECTRICITY BILLS?
While solar panels can offset 100% of your electricity usage, and net-metering can earn you energy credits to cover overconsumption, it’s often not possible to eliminate your electricity bill entirely.
Because of the basic fees and charges utility companies often charge for being connected to the energy grid, solar panel owners will still see a small charge each month on their utility bills.
The only way to totally eliminate your electricity bill would be to install an off-grid solar panel system. However, these systems are often expensive because of equipment and labor requirements, and they limit the household’s energy availability due to limited solar storage.
To get your free solar analysis and see if solar is right for you, contact Green Ridge Solar today!
Also use our Solar Calculator to estimate how much you could save with solar.
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- Do You Pay Electric Bill With Solar Panels & Customer Service – SavePaying.com – […] https://greenridgesolar.com/2021/02/electricity-bills-solar-panels/ […]
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