What Will My Electric Bill Look Like with Solar Energy?
by Kelly Anderson, on Feb 17, 2020 11:09:27 AM
What to Expect on Your Bill with a Solar System for Home
There can be lots of confusion and questions about switching to solar power, especially regarding your utility bill. You may be wondering: am I ‘off the grid’ now? Will I still have an electric bill? How much will it cost each month?
To help you understand what happens to your utility bills, we’ll explain what each component of the statement means and what you can expect for your Decatur, IL-area home. Continue reading to learn more about a solar system for your home.
Deciphering Your Current Bill
Before you install solar panels, it will be helpful to understand what you’re currently paying the utility company and where the charges come from. When you first look at the costs, you’ll likely see ‘rate’ at the top. The rate on your bill is the amount your utility company charges based upon the type of building being metered. Residents, businesses, and industrial facilities do not have the same rates, so the number will depend on what you are powering.
Next, you’ll see the customer charge, which is paid whether you use any electricity or not in a month. This is important to remember, because even when you offset all of your energy consumption with solar powers, you may still have this minimal charge on your bill. In the state of Illinois, you’ll also see things like a transmission service charge and delivery service charge listed.
How It Will Change with Solar
After installing solar panels, it will be an exciting moment to tear open your first utility bill. Since now you are producing energy, the way your bill looks post-solar will look a bit different. Any power that your home produces and then consumes will be canceled out. But the excess energy that goes through your meter will earn credit. For each megawatt-hour you generate, you’ll receive one SREC, which you can sell back to the power company. This can look confusing on your bill, as you’ll see a lower number of kilowatt-hours (kWh) than you have seen on your own energy reporting. But only the solar energy that goes through your electricity meter and back to the grid will be recorded on your bill. If you do have any charges, the credits you accrue will cover it.
Are solar panels the right choice for your home in Decatur, IL, or surrounding towns? Summit Solar will give you a free consultation to see if you’re a fit for solar. Contact us here to get started!