Reduce Your Electricity Bill

Installing solar panels on your home is hands down the best way to reduce your electrical bill.

Why? Simply put, instead of needing to buy electricity from someone else (your utility company), you can produce it yourself with solar panels on your roof!

Of course, the actual mechanics behind how going solar reduces your electric bill are a little more complex. There’s a few key principles to understand how your solar production interacts with the utility company and your home consumption.

Net Energy Metering – How You Eliminate Your Bill with Solar

Net Energy Metering is the critical method by which you’re able to save money from your electric bill by going solar.

Here’s how Net Metering works:

  1. Excess electricity your solar panels generate are sent back to the utility grid. This is tracked constantly by your utility meter.
  2. At night when your solar system isn’t producing any more power, you’ll take energy from the grid. This is again tracked by your utility meter.
  3. At the end of every billing cycle, your utility will provide you with a summary of all of the energy that was pushed and pulled from the grid. You are only charged or credited for the net amount of electricity.

This is why the goal of every homeowner when going solar should be to achieve a 100% net offset of their electrical consumption with solar production.

Unfortunately, there will still be some “non-bypassable” service charges on your electrical bill, to the tune of a few dollars a month, but all-in-all going solar could mean hundreds of dollars in savings every month!

Considering how solar panels last over 20 years, you’d be in for some serious bill savings.


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