See how much solar panels cost in your area
Please enter a valid zipcode.
Zero Upfront Cost
Best Price Guaranteed
Solar Learning Center > Solar Pros & Cons > Lower Electric Bills with a Solar Power System
Lower Electric Bills with a Solar Power System
For most people, electricity bills are just a fact of life. We need electricity for many of the essential aspects of modern life – everything from air conditioning and kitchen appliances to TVs and cell phones require it. It’s unreasonable to expect someone to go without electricity these days.
There are three primary problems with electric bills currently:
- They’re expensive
- They’re continually getting more expensive
- They’re unpredictable
Solar systems are often the best way of mitigating all three of these problems.
Electric Bills Are Expensive
The cost of electric bills depends primarily on two factors: how much electricity is used, and the rate that the utility company charges for that electricity.
It makes intuitive sense that the more electricity you use, the higher your bill will be. However, sometimes the effect can be more dramatic than one would assume.
For example, many utilities have tiered rate structures that increase the rate per kWh used as the total amount of power used hits higher and higher thresholds. This has a multiplier effect on the bill, where not only is more power being used, but that additional power is being charged at higher rates as well.
By installing a solar system, homeowners can produce their own power and therefore purchase less from the utility. This can have a significant impact on their monthly expenses, since they can avoid the highest rates for their power consumption, if not completely reduce their bill all together.
Electric Rates Continue to Rise
Not only are electric rates high now, but they continue to increase over time. Increases in electric rates far outpace inflation and wage growth, meaning that everyday Americans are spending an increasing share of their income on their electric bills.
Even as utilities add cleaner, cheaper renewable energy into the electric grid, they face enormous costs to maintain and expand the grid. Since the US was one of the first countries to build out an electric grid, it also means that our system is one of the oldest. Utility companies spend hundreds of millions of dollars every year upgrading their towers, lines, substations, and transformers, and these costs continue to drive up the cost of delivering electricity, even as cheaper generation sources come online.
By installing a solar system, homeowners can protect themselves against these rising costs. Solar systems have almost no ongoing fuel or maintenance costs – since sunshine is free! – and they also produce power right where it’s needed in the home, which avoids costly transmission infrastructure. As grid maintenance costs continue to rise, solar systems will provide increasingly attractive returns.
Electric Bills Are Unpredictable
One of the biggest frustrations we hear from homeowners is the unpredictability of their electric bills. It’s very difficult to know exactly how much energy a home is using in real time, so oftentimes increased usage throughout the month goes unnoticed until the bill arrives the next month, at which point homeowners are forced into tough budgeting decisions to pay their bills.
With solar, energy costs are extremely predictable. Many homeowners are able to cover 100% of their energy needs with their solar system – in that case, they will typically only have a $10-20 minimum service charge from the utility that goes towards grid maintenance fees, charges for net metering, and other associated costs. If the solar system doesn’t cover 100% of their needs, then they will have some level of remaining electric bill that will vary through the year.
With a cash purchase, there’s no recurring cost for the system or power. With financing, there’s a set monthly payment that doesn’t vary based on season or immediate usage. Either way, this stability can be very valuable for homeowners budgeting their monthly expenses.
Solar Saves!
So, not only does solar save homeowners money on their monthly electric bills, it also protects them against rising utility costs and provides much more predictable billing that avoids nasty unexpected bills. To see your customized solar savings, head over to the solar.com main page and schedule a call with one of our Energy Advisors!
Related Articles
Top Reasons Why You Should Go Solar Before 2022
Have you been wondering whether you should take the leap over to solar before 2022? Some reasons for doing so are obvious, such as cleaning...
The Top 5 Reasons To Go Solar in 2021
America’s revolutionary solar advocate succinctly summarized the reasons why you should go solar. I’d put my money on the sun and solar energy. What a...
The Impact of SCE’s Rate Changes
At the beginning of 2020, SCE (Southern California Edison) released updated electricity rates for customers who go solar. Generally speaking, when utilities change their rates,...
San Diego Gas and Electric (SDG&E) proposes a 28% rate hike over...
San Diego and Southern Orange County energy provider, San Diego Gas and Electric (SDG&E), is proposing a 28% rate hike over four years. The biggest...
PG&E Raised Prices 4% Annually on Average to Discourage High Users
California’s largest utility, Pacific Gas and Electric Co (PG&E), is making strides towards limiting energy use, simplifying rate plans, and promoting clean energy. Unfortunately,...
Here's How to Understand Your PG&E Bill After Going Solar
For residents of California who are customers of the Pacific Gas & Electric (PG&E) company, one of your biggest questions before you decide to switch...
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...
A History of Con Edison's Electricity Rates
It is no secret that the cost of electricity has been going up recently and is set to increase further in the future. All throughout...
SoCal Edison Electricity Rates Increase in 2018 & 2019
It’s common knowledge that the cost of solar panels and other solar related technologies has dropped significantly over the past decade and will continue to...
Your Life Once You Go Solar
If you landed on this post, then you probably have some interest in going solar. Maybe you have already installed a solar panel system and...
The Top 10 Benefits of Switching to Solar
For most people, making the decision to go solar brings up many questions. Even just thinking about switching to solar energy can sound strenuous. However,...
6 Reasons You Should Buy Solar Panels
There is a lot of buzz around home solar these days. There are a lot of messages pushed to homeowners about their options. I’d like...
10 Tips To Lower Your Electric Bill
At Solar.com, our team is always looking out for ways to save you money on your electric bill. Here are 10 tips to help you...
Northern California's Electricity Rates Jumped 21% in 2016
Northern California’s Recent Rate Hikes Northern California homeowners are irate after their electric bills jumped over 21% in 2016. The biggest hike came in August...
PUC Decision May Signal Demise of Nevada Solar
The Nevada Power and Utilities Commission recently weighed in on the state’s net metering debate with bad news for solar customers and the solar industry...
Outrage over NV Energy "Bait and Switch"
NV Energy’s newly implemented solar price increase has been met with disbelief and outrage. Just days ago, two NV Energy solar customers filed a lawsuit...
Salt River Project Rate Hikes Threaten Arizona Solar Viability
With scorching temperatures and nearly year-round sunshine, Arizona seems to be an ideal location to implement a rooftop PV system. However, with the possibility of...
Wind Power vs. Solar Power
In 2014, 369.6 GW of energy was generated from wind power globally. This number continues to grow every year, and it shows no signs...
See how much solar panels cost in your area.
Please enter a valid zipcode.
Please enter a valid zipcode.
Zero Upfront Cost. Best Price Guaranteed.