Understanding Your Electric Bill Before and After Going Solar

Residential electricity prices in the U.S. have risen about 32% over the past decade, and some states have seen much higher increases. This steady climb has pushed more than 4.1 million American homes to adopt solar as a way to bring costs under control.

But what actually happens to your electric bill after solar panel installation? While it won’t disappear completely, the bill changes in important ways that can save you money over time.

Before Going Solar: What Your Electricity Bill Shows

Most homeowners receive a monthly electric bill from their utility company. This bill shows how much electricity you used and how much you must pay.

Here are the key parts of a traditional electricity bill:

• Electricity usage – Your bill shows the total kilowatt-hours (kWh) of electricity used in your home. This is the amount of electricity you consumed over the month.
• Electricity rate – Utilities charge a set rate per kWh. Your total usage multiplied by this rate equals your monthly electric bill.
• Fixed charges – Even if you use less power, you’ll still pay basic service fees. These cover meter reading, billing, and grid maintenance.
• Taxes and other fees – State, local, and regulatory charges are also included in your electricity bill.

So before going solar, your electricity costs depend on how much electricity you use and the rate charged by your utility company. The average monthly electric bill in the U.S. can be several hundred dollars, especially if electricity rates are high.

After Going Solar: What to Expect on Your Electricity Bill

Installing a solar panel system changes the way you pay for electricity. Your panels produce electricity directly from sunlight. This means you rely less on power from the grid. But it is important to know that you’ll still have an electric bill in most cases. 

1. The Bill With Solar Looks Different

Once you install solar panels, your monthly electric bill will usually show three things:

• The electricity your solar panels generate – How much solar electricity your system produced.
• Electricity you still take from the grid – If your panels aren’t producing enough electricity (like at night or on cloudy days), you draw power from the utility.
• Excess solar electricity sent to the grid – If your panels generate more electricity than you use, the extra power goes back to the grid. This is called net metering, and it earns you credits.

2. You’ll Still Have An Electric Bill

Even if your solar panels produce enough electricity to power your home, you’ll still get an electric bill. Why? Because:

• Fixed utility fees remain – These are small service charges that cannot be avoided.
• Panels aren’t producing all the time – Solar panels produce during the day, but you may need electricity at night. Unless you add solar batteries, you’ll still use some electricity from the grid.
• Seasonal changes – In winter, your solar production may be lower, so you use more power from the utility.

3. Your Bill Will Vary Month To Month

Your solar bill isn’t always the same. In sunny months, you might build up credits that lower or even zero out your bill. In cloudier seasons, you may rely more on the grid, so your bill could be slightly higher. Your electricity bill also depends on the following factors:

• The amount of electricity your household uses
• The size of your solar panel system
• Your electricity rate

If your solar energy system is designed to cover 100% of your usage, your electricity bill after going solar can drop dramatically. Many solar customers see their bills fall by 70–90%.

Example: A Monthly Electric Bill Before and After Solar

Let’s say your average monthly utility bill is $150.

Before solar, you pay the full $150 to your utility every month.

After installing solar panels, your solar panel system generates enough electricity to cover most of your needs. You only draw a small amount from the grid. Now your bill might drop to $20–$30 for fixed charges and grid use.

That means you save more than $100 each month. Over the year, that’s more than $1,200 in savings.

How Net Metering Affects Your Electric Bill

Net metering is a solar billing program offered by many utilities in the United States.

It works like this:

• If your solar panels produce more electricity than your home needs, the excess electricity goes to the grid.
• You receive credits for this extra energy, which lowers your next month’s bill.
• When your panels aren’t producing enough electricity, you can use those credits to offset the power you pull from the grid.

This is one of the main reasons solar customers see big reductions in their monthly electric bills.

Solar Loans and the “Solar Bill”

If you financed your solar panel system with a solar loan, you may also have a separate monthly loan payment. Some homeowners call this their solar bill.

The key difference is that instead of paying your utility company a large amount every month, you’re investing in your own solar system. Over time, your loan payment often replaces your old electric bill. Once your loan is paid off, your solar electricity is essentially free, except for small utility charges.

Solar Power: The Way to Lasting Savings

One of the biggest reasons to go solar is the long-term savings. You’ll notice a significant difference when comparing your electric bill before and after solar panels. While the upfront cost of installing a solar panel system can seem high, the benefits are clear:

• Lower your monthly electric bill – Most homeowners see immediate reductions.
• Protect against rising electricity rates – Once you lock in solar power, you are less affected by rate increases from utilities.
• Add value to your home – Residential solar is a strong selling point for buyers.
• Take advantage of the federal solar tax credit – This reduces the cost of your solar energy system.

Factors That Affect Your Bill with Solar Panels

Your actual savings on the energy bill after installing solar panels depend on:

• Your location – States with higher electricity rates offer more savings potential.
• Solar system size – Larger systems offset more usage and increase savings, while smaller systems offset less.
• Energy habits – You have to pay for any extra power needed beyond what your solar system generates, unless you have solar batteries.
• Battery storage – Adding solar batteries lets you store excess solar electricity and use it later. This reduces how much electricity you need from the grid.

Key Takeaways

• You’ll still have an electricity bill after going solar, but it will be much lower.
• Net metering credits can offset the electricity you pull from the grid.
• Long-term, solar savings can be thousands of dollars, especially with incentives like the federal solar tax credit.
• Installing a solar panel system is one of the best ways to reduce your electricity bill and protect against rising rates.

Final Thoughts

Taking control of your energy bill starts with understanding the difference solar panels make. After going solar, your monthly bill doesn’t disappear. But it transforms into a statement of your savings. How much you save depends on your system size, electricity rates, and household energy use. 

With many solar companies offering financing, tax credits, and grid-tied solar panel systems, going solar has never been easier. By installing a home solar energy system, you can power your home with clean energy, reduce your electricity costs, and enjoy reliable long-term savings.