One of the biggest myths about solar panels is that you stop getting an electric bill when you install them. This is only the case if you install off-grid solar panels. Otherwise, you will remain connected to the electric grid and continue to receive a monthly bill from PG&E.
However, your bills will be much lower than they were before going solar. Some months, you may owe close to nothing.
Why Do You Still Get an Electric Bill With Solar Panels?
You still get an electric bill after installing residential solar panels because your house stays connected to the electric grid. Here’s an overview of the charges you’ll see on your bill:
- Service Charges – Utilities charge solar customers to maintain their grid connection. You’ll pay a small monthly service charge that helps cover things like grid maintenance.
- Non-Bypassable Charges – All utility customers pay these charges. They help pay for various utility programs, like energy efficiency and low-income assistance.
- Usage Charges – It’s unlikely that your solar panels will cover 100% of your home’s electricity usage. We design your system to cover as much of your electricity usage as possible, but solar panels can only generate electricity during the day. At night, you’ll draw power from the electric grid. Battery storage can, however, help cover your nighttime usage.
How Do Solar Panels Work with Your Electric Bill?
The way you’re billed for electricity changes when you install solar panels because of net energy metering (NEM). Net metering is different in every state. In California, it’s technically called Net Billing, but is often referred to as NEM 3.0.
Here’s how it works:
- When your solar panels generate more electricity than you need, the excess is automatically sent to the electric grid.
- You receive a credit on your electric bill for the electricity you send to the grid.
- When your solar panels are not generating enough electricity, your home draws power from the grid.
- Your credits are automatically applied to your utility bills.
- At the end of a 12-month period, you receive an annual true-up statement where your unused credits are applied to any applicable charges. If you have a remaining balance, you’re charged for it. If not, your balance resets to zero and the cycle begins again.
How Much Will Your Electricity Bill Be with Solar Panels?
It’s almost impossible to say what the average monthly electric bill with solar panels is in California because every home and solar energy system is different.
Some houses have ideal solar conditions and can generate almost all of the electricity they need with solar power. In this case, your bill could be close to $0, especially during the summer when the days are long. (Keep in mind that you will always have service charges, even if your usage charges are $0.)
Other houses don’t have enough roof space to install the number of panels they would need to cover 100% of their usage, or they don’t get enough sunlight. In this case, solar can still be a good investment, but it will cover less of your bill.
What Impacts Electric Bill Savings with Solar Panels?
Some of the key factors that affect your savings include:
- Number of Panels – The more panels you have, the more electricity you can generate. We size your system based on an analysis of your historical electricity usage and will match your solar generation capacity to your usage as closely as possible.
- Sunlight – Solar panels work best in direct sunlight. They can still generate electricity if they get some shade throughout the day, but the more sunlight they have access to, the more power they can generate.
- Electricity Usage – If your usage spikes, your solar panels may not be able to cover the increase. This can happen if you install a power-hungry appliance like a hot tub or an EV charger after going solar. When you go solar with Six Rivers Solar, we’ll take any upgrade you may be planning into account to prevent this from happening.
Get a Free, Personalized Estimate to See Your Savings
Going solar looks different for everyone. To find out what kind of electric bill savings you can expect, reach out to Six Rivers Solar today. We offer free estimates based on your home and electricity usage to help you decide whether solar panels make sense for you.
We’re the North Coast’s leader in solar energy, serving Humboldt and Del Norte County homeowners since 1980!
