How Do Solar Panels Work with Your Electric Bill?
One of the biggest benefits of installing solar panels for your home is the impact they have on your electric bill. With solar panels, you’ll save money on your electric bills every month. But you’ll still receive a monthly statement. Learning how to read it will help you prepare for a rooftop solar installation.
In this guide, we’ll walk through how your electric bill changes with solar and what you can expect from your new utility bill.
Do You Still Have an Electric Bill with Solar Panels?
One of the most common myths about solar panels is that installing them means you’ll never receive an electric bill again. While solar can dramatically reduce your energy costs—sometimes even bringing your usage charges down to $0—you’ll still get a monthly statement from your utility company. Any electricity you draw from the grid when your panels aren’t producing enough will be reflected on your bill, along with standard service and delivery fees that all utility customers pay.
How Solar Changes Your Electric Bill
Before solar, your electric bill is simple: you use electricity, and your utility company charges you based on the number of kilowatt-hours (kWh) you consume.
Once solar panels are installed, the way you interact with the grid changes.
Your solar panels generate electricity from sunlight. This means your home is producing its own energy rather than relying solely on your electric company.
Your home uses that solar power first. During the day, your panels supply power directly to your home’s appliances, lighting, and anything else you plug in.
Excess electricity is sent back to the grid. If your solar system produces more power than you’re using, that extra energy is fed into the utility grid.
At night or on cloudy days, you will need grid power. If your panels aren’t producing enough electricity to meet your needs, you’ll draw power from the grid. You can offset a lot of this usage with net metering credits (more on that later).
With solar, instead of paying for all of your electricity usage, you’re only charged for the electricity you pull from the grid beyond what your panels produce. This will be a much smaller amount than you’re taking from the grid now, which means your electric bills will drop significantly after you install solar panels.
How Net Metering Affects Your Electric Bill
One of the most important factors in how solar affects your bill is net metering. Net metering is a solar incentive that allows you to earn utility credit for exporting the excess electricity your solar panels generate to the grid.
When your solar panels generate more power than you need (which happens often on sunny days) the excess is either stored in a solar battery if you install one or sent back to the electric grid. Your utility company credits you for the power you send to the grid. These credits are applied to your account and offset any electricity you use from the grid at night or when your system isn’t generating enough power. At the end of the month, your bill reflects your “net” energy usage. That means the amount of electricity you consumed from the grid minus the excess power you sent back. You only pay the difference.
Net metering is not available everywhere. In Ohio, we’re lucky to have a strong net metering policy. All investor-owned utilities in the state are required to offer net metering for all solar power systems, as long as they don’t generate more than 120% of the home’s electricity requirements. You will be credited at the full retail rate for the power you send to the grid and you can roll your credits over from month to month.
What Will Your New Electric Bill Look Like with Solar Panels?
While your electric bill won’t completely disappear after installing rooftop solar, it will look different. Here’s what to expect:
A much lower usage/consumption charge - The portion of your bill that reflects electricity usage will shrink significantly.
A small service fee - Most utility companies charge a fixed monthly fee for maintaining grid access, typically around $10–$20.
Net metering credits - If you’ve earned net metering credits, your bill will show how much energy you sent back to the grid and how those credits were applied.
Ready to Go Solar?
Investing in solar not only reduces your monthly energy expenses but also protects you from rising electricity rates. As utility prices continue to increase, your savings will grow over time.
If you’re interested in learning more about how solar can lower your electric bill, our team is here to help. As a local, worker-owned solar company, we take pride in providing honest, high-quality solar solutions that fit your energy needs. Contact us today for a free consultation!
