Aside from becoming more climate friendly, the main reason people are switching to solar energy is to reduce monthly electricity bills. Many people choose to partially supplement grid power, but many others with enough roof space choose to install enough panels to meet 100% of their energy needs – or even more. But even if you pull all your electricity from your panels, you’ll still get a utility bill unless you completely unplug from the grid.
What parts of my bill will be reduced or eliminated?
Solar panels reduce or eliminate electricity delivery charges. Somewhere on your bill you will see your electricity consumption in kilowatt hours, this is the section where your solar savings apply.
What is net metering?
Net metering is a policy of most utility companies whereby you are billed for your monthly net use of electricity from the grid. If you generate 70% of your electricity from solar panels, you only pay for the remaining 30%, which you get from the grid. If you generate more electricity than your household consumes and end up with a negative consumption on your bill, net metering results in an electricity credit for the energy you have fed into the grid. The credit will be carried over to the next month.
Will NY, PA, VT or OH charge me just because I have solar?
Even if your electricity usage is negative for the month, you’ll likely still see charges on your bill, and these depend on your utility company’s policies. Many companies charge something called a “base fee” as well as taxes. Some states are more hostile to solar power, charging fees like Alabama Power’s capacity reservation fee. If you’re interested in solar power in the Northeast, check out these state guidelines.
- New York: Beginning in 2022, NY will introduce a new monthly “Customer Benefits Charge”.
- Pennsylvania: Utilities cannot charge net-metered customers that they would not charge non-net-metered customers.
- Vermont: Electricity providers charge a monthly customer fee just for connection to the grid, but there are currently no solar-only fees.
- Ohio: Ohio utilities have been aggressively proposing fixed-cost increases in response to solar adoption, but few have followed suit.
Why solar is still worth it
At the end of the day, you still get a utility bill after you switch to solar. Depending on how much electricity you generate, you can use net metering to avoid paying electricity usage costs. However, there are other fees imposed by your state or utility company. However, you can still save hundreds or thousands a year on top of the incentives you get from the federal government.
Contact Solar Liberty free of charge Solar rating for private households to see how solar can save you electricity!
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