Introduction to Post-Solar Utility Bills
After installing solar panels, you will still receive a utility bill, but its nature and amount can change significantly, offering potential cost reductions based on system size, local policies, and your energy usage.
Understanding Your Solar Utility Bill:
Solar Offset:
Energy Production: Your solar panels convert sunlight into electricity for your home's use. When production exceeds your consumption, the excess energy is sent back to the grid.
Bill Reduction: This surplus energy typically results in credits on your utility bill, effectively lowering what you owe.
Net Metering:
What It Is: Net Energy Metering (NEM) allows you to receive credits at the retail electricity rate for any surplus power you return to the grid.
How It Works: During high production times, like daytime, your system might generate more electricity than you use, earning you credits. These credits can then offset your bill when you draw from the grid, such as at night or during low solar production.
Net Billing:
Difference: Instead of retail rate credits, net billing compensates you at a potentially lower, wholesale rate for the excess electricity you send back. This might result in less savings compared to net metering but still offers a financial benefit for your solar production.
For homeowners in areas that have Net Billing, Better Earth typically recommends a battery storage system.
Zeroing Out Your Bill:
Balancing Energy Use: Properly sizing your solar system can allow you to match or exceed your annual electricity consumption, potentially leading to "zeroing out" your utility bill.
Local Regulations and Variations:
Policy Differences: The specifics of net metering, net billing, and how excess energy is treated can vary widely by location. Understanding these local policies is crucial.
Definition: At the end of a billing period, often annually, utilities might issue a "true-up" bill to balance what you've consumed versus what you've produced. If you've used more energy than you've generated, you'll owe the difference. If you've produced more, your excess might be reset to zero or you might get compensated, based on local utility rules.
Minimum Connection Fees:
Service Charges: Even with solar panels significantly offsetting your energy use, you might still encounter a small monthly fee for maintaining your connection to the grid.
Navigating Utility-Specific Policies:
Utility Company Website: To get the most accurate and detailed information on billing specifics like minimum bills, true-ups, and applicable programs, check your local utility's website.
Better Earth Solar: For personalized advice on how these policies affect your solar setup, reach out to Better Earth Solar. We can help you navigate local regulations to optimize your system's financial benefits.
Conclusion:
While you'll continue to receive a utility bill after going solar, it's generally much reduced. The impact will depend on your solar system's performance, your energy consumption, and the nuances of local utility policies. Engaging with a solar provider like Better Earth Solar can ensure you make the most of your solar investment by understanding and leveraging these local billing structures.