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How Do Solar Panels Work With Your Electric Bill | WRE

Written by Admin | Mar 22, 2023 1:42:18 AM

Are you tired of receiving high electricity bills every month? If so, then you may want to consider investing in solar panels. But how do solar panels work with your electric bill?

Wolf River Electric is here to guide you through understanding how solar power and electric bills work together. In this blog post, we’ll discuss how photovoltaic modules generate electricity and detail some of the benefits and advantages of transitioning to renewable energy sources. 

If a more sustainable system sounds appealing, stay tuned as Wolf River Electric takes you through the exhilarating journey ahead. 

Factors Your Electric Bill With Solar Panels Are Dependent On

Home Solar System’s Energy Production– Generally speaking, the higher the wattage of your solar panel array, the more energy it will produce and hence reduce your electric bill. 

Household’s Energy Consumption– If your household consumes more energy than what is produced by your home solar system, then you won’t be able to offset your electric bill fully. 

Local Electric Rates– By understanding when you are charged the highest rates, you can use energy from your solar energy system and reduce the amount of energy purchased from the utility company.  Also, if your area offers net metering, you could get credited for excess electricity generated and sent to the grid. 

Common Reasons Why You’ll Still Have Electric Bill With Solar Panels

Cloudy Days & Night

Solar panels require direct sunlight to produce electricity effectively. On cloudy days or at night when sunlight is insufficient, you may need to depend on grid-supplied electricity or alternative energy sources. If there isn’t enough sunshine, your system’s output may be lower than anticipated, which could result in continued reliance on your electric bill.

Utility Service Charges

Even when you install solar panels to produce the majority of your electricity, there will still be some fees you need to pay to the utility company. These essential services for your solar system’s operation include installation, maintenance, and connection/disconnection fees.

Lack Of Solar Battery Storage

Solar panels generate electricity when the sun is out, but if you don’t have solar battery storage you won’t be able to save or store any of that energy for later use. This means that on days when there isn’t enough sunlight, or at night time, you will still need to rely on grid-supplied electricity and thus an electric bill. 

Lack Of Net Metering

Net metering is a policy that allows you to sell the excess solar electricity produced by your system back to the utility company at the same rate as what you pay for grid-supplied electricity. However, not all states and utility companies offer net metering and if you are not in an area with this policy, you will still have to pay for grid-supplied electricity. 

How To Lower Your Electric Bill With Solar Panels

Reduce Your Energy Usage

Reducing your energy usage is the simplest and most cost-effective way to reduce your electric bill. Taking simple steps such as turning off lights when not in use, unplugging electronics when they are not being used, using energy-efficient lightbulbs, and installing programmable thermostats can have a significant impact on your electric bill.

Install Solar Battery Storage

By storing excess energy from your solar panels, you can use it at night or when the sun isn’t shining, rather than using electricity from the grid. This helps reduce your energy costs, as well as improve your home’s energy efficiency.

Enroll In Net Metering

Many utilities offer net metering programs which give customers credits for the excess energy their solar panels produce. This additional energy is sent back to the grid, and you get credited for it on your electric bill. Such credits can add up over time and can help you save money on your electric bill. 

Take Advantage of Solar Tax Credits and Incentives

Governments often provide solar tax credits and incentives to encourage people to install solar energy systems. These incentives reduce the initial cost of installing a solar system, which in turn can lead to long-term savings on your electric bill. Look into any available incentive programs in your area so you can maximize your savings. 

Optimize Your Solar System

Regularly monitoring and adjusting your solar PV system can help you get the most out of it. This can also reduce your electric bill. Check if the panels are correctly angled to maximize exposure to sunlight. Additionally, check for any debris or obstructions blocking sunlight from reaching your panels.

Are You Ready?

Go Solar Today!

Conclusion: Expect Electricity Bill Even With Solar Panels

Installing solar panels can reduce your electricity bill. However, expect to pay a small amount still. Solar panels produce electricity that is incredibly beneficial. They help in reducing carbon footprint and sustaining the environment. But, expecting to completely eliminate your electric bill may be less achievable than you think.

If you are still a part of the grid, some of your energy will come from other sources with associated costs; however, you can be aware of additional savings by monitoring individual use in peak period times. 

As renewable sources become more accessible and affordable, we are sure that more advantageous zero bills shall become closer to attainable. So have a look and explore what options are available with regard to managing your electricity usage and assessing if solar panels could help limit your electricity bill for good. 

Frequently Asked Questions

How Much Electricity Bill To Expect After Installing A Home Solar System?

The electric bill after the solar installation in your home will depend on several factors, such as the size of the solar panel system, its location, and local energy prices. Depending on these factors, you can expect a reduction in your electric bill of 25-50%. 

How Do Current Costs Stack Up To Past Prices?

The cost of installing a home solar system has decreased significantly in recent years. This is due to advances in technology and cheaper materials. In the U.S., it’s estimated that residential solar panel systems fell by over 70% between 2010 and 2020. This dramatic decrease in price makes solar panels a great investment. Homeowners can reduce their electric bills and increase their savings with this eco-friendly choice.

What Are The Benefits Of Installing A Home Solar System?

The benefits of installing a home solar system include lower electricity bills, an increase in property value, greater energy independence as well as being kinder to the environment. Solar panels save the environment by generating clean, renewable energy from the sun. Increasingly, homebuyers are attracted to homes with solar panels installed and this can raise a home’s value.

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