What Happens With Your Utility Bill When You Go Solar?
It’s well known that solar panels and utility savings go hand in hand, but what exactly does that look like? Many people ask this question before making the decision to install solar panels. Let’s take a look at how your utility bill will change, as well as how you’ll be charged for electricity use once you go solar.
Solar’s Benefits for Residential Builds
The process begins before solar panels are even installed. Solera Energy’s design and engineering team will create custom blueprints for your solar panel system and apply for your net metering approval and permits from the city and county. After obtaining approval, we will schedule your installation. Final documentation will be issued to your utility provider by us, and then we will assist you with setting up your system and monitoring.
From there, you’ll receive a bill from your utility company as usual, and it will show how many kilowatt-hours you have used and produced. The average homeowner in Missouri pays $85 to $100 a month on their electric bill, but that can be cut in half or more once you switch to solar.
The final numbers will depend on how your billing is determined. Here are a few ways it can be calculated:
Grid-Tied Solar
Your solar panel system will likely be connected to the grid. This means that during the day, the system produces electricity that powers both the house and the grid. Once the sun goes down, the house draws power back from the grid. If your utility company uses a time-of-use billing, you will owe whatever it charges in the evening (which can often be peak rates). On the upside, the company will often compensate the solar owner for the power given to the grid.
Flat-Rate Billing
With a flat-rate billing setup, your bill will show the same rate for every kilowatt-hour of power you use regardless of when you use it. This is the best way to take advantage of solar savings since you can limit the amount of power used to keep your bill low.
Tiered-Rate Billing
This rate includes a monthly baseline allotment of electricity that is charged at the utility’s lowest price tier. Once you go over that baseline, you’re billed at a higher rate. With solar panels, you’re more likely to avoid going over your monthly allotment since most of the day’s usage would be fueled by the sun.
Cut Back Your Bills With Solera
If you’re ready to make the switch to solar energy, the experts at Solera Energy are happy to help you determine your cost savings. We can design a customized solar energy solution for your home and budget.
Call us at (855) 650-7404 or fill out our online form to get started.
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