Your Electric Bill After Going Solar

By Isaac Ost
May 24, 2018
Your electric bill after going solar

After going solar, the first thing you will likely notice is the drastic decrease in your monthly electric bill. The significant savings on one’s electric bill is one of the primary reasons that individuals decide to go solar for.

Your electric bill after going solar are dependent on a few factors, including:

  1. your solar panel system’s energy production,
  2. local utility rates, and
  3. household energy consumption.

By setting up a suitable solar panel system and by optimizing your energy consumption, you can create a balance that will allow you to produce enough solar energy for all of your needs. Find out what could be an ideal solar panel cost for your system. 

In doing this, you will save thousands of dollars on your electric bill over the years. Learn more about the easiest way to go solar here. >>

We featured this topic on Pick My Solar LIVE! Check out Kyle and Andrew's deep dive into your bill with solar: 

The Size of Your Solar Panel System

The size of your solar panel system has a direct impact on your monthly electric bill.

Most residential solar panel systems are anywhere from 5 to 10 kilowatts (kW). The size of your solar panel system among other factors, influences the amount of kilowatt hours (kWh) that are produced. To give you an idea, a 5 kW system will produce around 8,000 kWh a year, and a 7 kW system could produce about 10,000 kWh each year. Check this video to know more about kilowatt hour.

Other factors like hours of sunlight, angle and direction of your panels, and even how clean your panels are can influence this number, and because of this it may be higher in one state and lower in another.

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Arizona and California are among the best states to install solar because of the environmental conditions, which leads to a high rate of energy production. California specifically, has a variety of state and local incentives that also help to mitigate costs for your solar panel system.

Your Household Energy Consumption


Next, the amount of energy that you consume in your household also plays a role in what your electric bill will look like after going solar. The national average for electricity consumption of a household in the United States is 897 kWh.

If you live by yourself and can minimize your consumption further, it is very realistic to consume much less than that. Ultimately, you can figure out your monthly energy use with several calculators online.

Before installing your solar panel system, it is important to understand this number so that you can meet your energy production goals. Some people only want to cover a portion of their energy use with solar, but there are also many individuals who want to cover it all.

There are pros and cons to each option, but if you are trying to reduce your electric bill as much as possible then you should install a large enough system to meet 100% of your needs.

Local Utility Rates

Lastly, the cost for electricity is ultimately dependent on what your local utility is charging. The national average in February 2018 for the cost of electricity was 12.62 cents per kWh. This is estimated to increase by about 3% each year for the next couple years, and there is no reason to think the opposite may occur further down the road.

View our 2018 Solar Starter Guide

By multiplying the average energy consumption with the average cost per kWh we get an average monthly electric bill of $113.20. Most utility companies have a minimum charge of around $10 for delivery, which is separate from the charges for energy use. If your solar panel system is big enough to produce enough energy for all of your needs, you can reduce that ~$120 bill to roughly $10.

To Sum it All Up

Your electric bill after going solar is dependent on several variables, which may vary depending on location. The size of your system and the amount of energy you consume in your household are the biggest factors in how much you are charged each month.

At the end of the day your electric bill will be based on your energy production and consumption goals. It is very possible, however, to minimize the cost of your electric bill to its minimum payment, which can be anywhere from $5 to $20.

After switching to solar, you could be saving over $100 a month on your electric bill, and this amount will likely increase as the cost of electricity goes up. In the long term, the total savings that a solar panel system will bring to your monthly electric bill will number in the tens of thousands so do not hesitate to install a solar panel system today!

Isaac Ost

Written By

Isaac Ost

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