After hearing all the buzz about solar panels, you might wonder if it's worth purchasing them to lower your electricity bills. You might also think solar panels produce the same energy you consume throughout the day.
This way, you’ll have practically no electricity bills. Sadly, that isn’t true, and electricity bills are complicated. This article aims to explain why that is.
Common Reasons For Getting An Electric Bill Even With Solar Panels
You are bound to have an electricity bill unless you are off the grid, which is incredibly expensive and rare. Here are four reasons why:
- No Net Metering:
Net metering is a system in which your utility company grants you credits when you give them excess energy after fulfilling your daily energy needs. Its rates depend upon your electric rate, net metering terms, and your utility company’s value of credits.
However, suppose your utility company doesn’t have a net metering program. In that case, you’ll have to pay for electricity in times of need, especially on stormy days or nights, since your solar panels won’t be generating electricity. Plus, you’ll have no net metering credits to cover that cost.
- Nights and Cloudy Days:
Your solar panels need sunlight so that they can generate electricity. However, there’s a high likelihood that not every day will be sunny or even have the same intensity of sunlight as the other days.
Sometimes, weather conditions aren’t favourable or at night when your solar panels do not generate electricity. At times like these, you rely on the utility to power your home, which shows up on your electricity bill.
- Absence of Solar Batteries:
Batteries are important for storing extra energy during peak sun hours when energy output is high. This can later be used at night or on stormy days. However, if you don’t own a solar battery, you’ll have to pay for the electricity you get from the grid.
- Utility Service Charges:
Many people are connected to the grid even if they have solar panels. This is called being “grid-tied” or being connected to the grid. However, even if you completely generate your electricity and are grid-tied, then you'll still receive an electricity bill.
The bill will include different utility service charges combined with electricity prices and some fixed charges independent of electricity consumption. The fees can also include:
Transmission Charge:
Cost of high voltage transmitters that transfer electricity from the generating station to your home.
Customer Service Charge:
Costs related to billing, general utility operations, meter reading, customer service, and account maintenance.
Distribution Charge:
Building and maintaining the electricity distribution system costs include overhead, underground power lines, and transformer stations.
Average Monthly Electric Bill
You will have electric bills even after installing solar panels. However, the magnitude of those bills depends upon some factors:
Your Power Consumption:
Your electricity depends upon the number of appliances you use and the duration of that use. Running more appliances for longer times is sure to increase your reliance on the utility grid since your solar panels won’t be able to meet the high consumption demands.
Utility Company Fees:
It is important to ask your utility company about the bills you’ll be charged for even after installing solar since there are service, delivery, monthly, and electricity usage charges present in electricity bills.
Seasonality and Weather Conditions:
Your electricity bill will likely fluctuate since you can have a mix of sunny or cloudy weather. Your solar panels won’t be generating the same amount of electricity every day. If you’re living in an area with bad weather, you’ll have to rely more on the utility grid and pay more.
System Malfunction:
Although it happens scarcely, your solar panels might face some issues and be unable to generate electricity with peak efficiency. In this case, it is wise to talk to your solar panel company about restarting your solar system so that everything starts working properly. You should also look at your solar monitoring app to see how much energy is produced and compare it to previous days. Whatever the case, you’ll likely have a higher electricity bill since your solar panels’ efficiency would’ve dropped.
Solar Offset:
Solar offset is the comparison of your energy production and consumption. Most systems are created with a solar offset of 100%, meaning that the energy your solar panels generate equals the energy you consume daily.
Decreasing Your Electricity Bill
There is a direct relationship between your energy consumption and your electricity bill. However, there are many ways to reduce your electricity bills with solar panels:
Net Metering:
With net metering, you can earn credits from the utility by selling the excess electricity your solar panels generate. This credit can be used to lower your electricity bill, which is a huge plus.
Reducing Energy Usage:
You can conserve energy easily by:
- Utilising LEDs in place of incandescent light bulbs.
- Turning off devices and appliances which are not being used.
- Installing an automatic thermostat that only turns on the air conditioning and heating system when they are needed.
- Assess your energy efficiency, costs, and usage in a home audit.
Solar Batteries:
Purchase solar batteries to save up all that excess energy your solar panels generate so that they can be used in times of need, and you don’t need to rely on electricity from the grid to help you.
It is important to understand that even though you might not be getting your energy from the grid, you’ll still be charged as long as you are grid-tied. Therefore, the most beneficial thing you can do is to limit your energy consumption to curb your electricity bills.