Switching to solar energy is a wise decision for both your finances and the planet, but interpreting your new solar electric bills can be confusing at first. Here's a detailed explanation to help you understand how solar billing works, including how it interacts with your utility, and what to expect based on whether you're under net metering or net billing programs.
How Solar Billing Works
Bidirectional Meter Installation: Once your solar system is up and running, your utility company will usually install a bidirectional (or net) meter. This meter is crucial because:
It Tracks Two Directions:
Energy Received from the Grid: When your solar panels aren't producing enough power (e.g., at night or during cloudy days), you'll draw electricity from the grid. This is recorded as usage.
Energy Exported to the Grid: When your panels produce more electricity than you're using, this surplus is sent back to the grid.
Real-Time Use vs. Excess Export:
Immediate Consumption: Electricity from your panels is first used to power your home's appliances in real-time.
Battery Charging or Grid Export: Any excess power beyond your immediate needs might charge a battery if you have one, or be exported to the grid.
Billing Details:
Credits or Charges: Only the excess energy exported to the grid is reflected on your bill, often as credits under net metering. If your utility uses net billing, you might receive payment or lower rates for this excess, but the specifics can vary.
Why Your Bill Might Seem Confusing
Bill Not Reflecting Total Output: Your utility bill won't show the total energy your solar panels produce. Instead, it will only show:
Excess Energy: This is the energy sent back to the grid, which is either credited or accounted for under net metering/net billing.
Net Metering: Credits you for excess energy at the retail rate, which you can use to offset your electricity costs when drawing power from the grid.
Net Billing: Compensates you at a different rate (often lower than retail), sometimes with payments for excess energy or as bill reductions.
Tracking Your Solar Production
Monitoring Portals: To get a complete picture of your solar system's output, use the monitoring portal provided by your solar inverter or battery system (like SolarEdge or Enphase). These tools show:
Total Production: How much energy your panels are generating daily, monthly, or yearly.
Usage Patterns: When you're using the most energy, helping you understand your consumption in relation to solar production.
Utility Bill Variations
Utility-Specific Policies:
Billing Structures: Each utility might have different billing structures, including fixed charges, minimum bills, or specific fees for solar customers.
Rate Schedules: Your rate schedule with the utility can affect how your solar credits or payments are calculated.
Frequently Asked Questions (FAQ)
Q: Why does my bill still show charges even though I have solar?
A: You might still see charges due to nighttime usage, cloudy days, or because there are fixed fees and taxes that aren't offset by solar production.
Q: How do I know if my utility offers net metering or net billing?
A: Check your utility's website or contact their customer service. Policies can change, so it's good to stay informed.
Q: Can my solar credits expire?
A: Depending on your utility, net metering credits might roll over month to month or be reset annually. Some utilities might give you cash or credits for unused credits at year-end.
Q: What if my system produces more energy than I use over a year?
A: Under net metering, you might zero out your bill, and any excess might be credited or paid out. With net billing, you could receive payment for the surplus, but this varies by utility.
Q: How can I maximize my savings with solar?
A: Schedule energy-intensive tasks during peak solar production times, consider adding storage like batteries to use more of your generated power, and ensure your system is sized correctly for your needs.
Q: Does my utility bill show all my solar system's benefits?
A: No, it only shows grid interactions. Use your monitoring system for a full view of your solar benefits, including environmental impact and total energy production.
Q: What if I see an unexpected charge on my bill?
A: Check for any new fees or changes in utility policy. If unclear, contact your utility or solar provider for clarification.
Conclusion
Understanding your solar electric bill involves recognizing that it's only part of the story. Your actual savings and the environmental benefits of your solar system are far more extensive than what's reflected in your utility bill. For the most accurate insight into your system's performance, combine your utility bill data with information from your solar monitoring portal. Remember, each utility has its nuances, so always refer to your provider's website or contact them directly for the most current and specific information about your billing situation.
For more information about understanding your solar bill, you can find some resources for the common utilities we work with below:
California
Arizona