This is Your Electric Bill on Solar Power

This is  your electric bill. This is your electric bill on solar power.


This example is taken from a solar cost analysis for a 5-kilowatt (kW) solar energy system for a homeowner in northern California.

As you can see, after installing solar panels, our California homeowner’s annual electricity costs are reduced by 77 percent! In other words, our annual electric bill goes from about $2075 to $685, a total savings of $1390 in the first year of operation.

These electric bill savings are incredibly reliable — and they add up. Over the course of the system’s life, we could expect to save over $90,000 on electricity costs – all thanks to our brand-spanking-new solar home energy system.

A few more notes:

  • Solar panels generate more electricity during the summer months, when days are longer. In fact, our solar energy system in this instance generates enough power in May and June to effectively eliminate our bill in those months!
  • Thanks to net-metering, if our solar panels produce more electricity in a given month — say June — the utility will issue us credit for it on July’s bill.
  • You’ll notice that, in this case, our use of electricity peaks in June, July and August. An electricity usage pattern like this is usually caused by increased use of air conditioning. When you get a solar home energy quote or an energy audit, an installer will analyze your particular usage patter and suggest energy solutions that are best suited for your needs.
  • Even though solar panels produce more power in June, July and August, it’s important to note that solar panels actually perform more efficiently in cool temperatures. This is because semiconductors — like the silicon in most solar panels — face modest efficiency losses as temperatures increase.

Questions? Comments?