Understanding your New Electric Bill after Installing Solar
Converting your home to solar power is a great way to help the environment, but going solar can also help you save money. In fact, most homeowners who convert their properties to solar power do so for the monetary savings.
Once you have made the decision to go solar and had all the work done, you will start to view your monthly energy bill in a new light. There are some key things to be aware of when going solar, including how those solar panels on the roof will affect your monthly energy costs.
Arguably the most important aspect of your new post-solar energy bill is the net energy metering. This is the agreement that entitles homeowners who have converted their homes to solar power to send their power to the local utility grid. This solar energy is sent to the grid during the day, and the local electric company is obligated to give credit for that energy production.
Your solar contractor should have given you information about the agreement that is in place, but it is still important to review your electric bill carefully, especially the first one you receive after the solar conversion. The way the solar energy your home produces is credited will determine amount of the credit, and each agreement will be a bit different. You should review your utility contact carefully to determine the billing rate and the rate at which your extra solar energy production is credited.
When determining your potential savings from a solar conversion, the contractor will look at your past 12 months of energy consumption. Those utility savings are then determined based on the expected production level of your new solar panels, combined with your current utility rate. But simply knowing how much energy your solar panels will produce is only half the story.
The other half of the story is how much energy you consume, and that will help determine the amount of your post-solar utility bills. You will obviously not use the exact same amount of power every month, nor will your solar panels produce the exact same amount of energy on an ongoing basis.
The sun is always there, and it is always producing electricity, but the amount of power it provides will vary with atmospheric conditions. When clouds overtake the sun, the efficiency of your solar panels will drop. When rain overspreads the area, that efficiency could drop even more. Some months your solar panels may generate enough energy to power your home. Other months, your production may fall short. Once your solar panels are in place, you should see a significant reduction in your energy bills, but the amount of that reduction will vary.
Going solar is a great way to reduce your energy costs going forward, and the economics of solar continue to improve with every passing year. If you have made the decision to go solar, just keep an eye on your electrical bills to see how much you could save.
