3 Reasons Why You Have a High Electric Bill With Solar Panels (How to Resolve them)
"Why do I have a high electric bill with solar panels?"
So, you're wondering, "Why do I have a high electric with solar panels?". Safe to say your average monthly electric bill is probably the same as before you went solar.
There are three primary reasons that could explain this for your solar panel system:
A. Your solar system is undersized.
B. You're exceeding your solar system's production capacity.
C. Shading is obstructing your solar panels.
It's possible that your system was undersized by the salesperson, despite their charm and persuasive sales pitch. Alternatively, you might've started double your energy usage, like blasting the air conditioner non-stop, all year round.
1. To address an undersized system, consider reaching out to solar consultants.
They can assess your situation and suggest how many solar panels you need, as well as the best placement depending on your electric bill.
Don't worry about the cost just yet - you're still eligible for another round of federal solar tax credit when you add new solar panel systems.
Tax credit vary in different states
2. In case you're merely exceeding your solar production with your solar panels due to increased electricity consumption, you have two options.
Firstly, try to reduce your energy usage where possible. If that's not feasible, consider investing in a larger solar system.
I've encountered numerous homeowners asking, "Why do I have a high electric bill with solar panels?"
Upon examining their utility bills, and I've seen my share of higher electric bills, but it often turns out that they significantly increased their energy usage right after their solar installation. You still need to conserve energy or you will get an electric bill every month.
In these cases, the salesperson may not be entirely to blame.
3. Lastly, if shade from trees is blocking your panels for most of the year, you might need to consider pruning or removing these trees. Solar panel system generates power from the sun and if they're getting block by shade. Well you know the rest.
This might be the reason you have a high electric bill even with a solar panel system.
But in most cases, on cloudy days and rainy days, there's not much electricity generated.
Your solar energy production depends on the sun. If there's no sun. Expect an electric bill
But depending on what state you are in. You can use credits to pay off those months
That's called Net Metering, we'll go over that in a sec.
Optimal panel placement should have been considered before the installation, as having panels facing south is crucial for maximizing efficiency.
Understanding Electricity Bill with Solar Panels
The average electricity bill for a household with solar panels typically includes a "grid participation" fee.
This fee can vary significantly based on your location and your specific utility company.
In December 2021, the California Public Utilities Commission (CPUC) issued a proposed decision to instigate a “grid participation charge” for residential solar systems, according to The San Diego Union Tribune.
This charge amounts to $8 per kilowatt. With most solar energy systems falling in the range of 5 to 6 kilowatts, this could add an additional $40 to $48 to the monthly bill.
Clearly, this is not a trivial amount. Companies like PG&E are effectively taxing solar homeowners under this scheme. No utility company likes renewable energy, I think they hate solar panels.
Kilowatt Hour
Think of a kilowatt-hour (kWh) like a mile on your car's odometer, but instead of measuring distance, it measures electricity use. When we talk about a kilowatt-hour, we're talking about using 1,000 watts of electricity for one full hour.
Why is Kilowatt-Hour important for your Solar Panels?
If you have a solar panel system that can make up to 5,000 watts (or 5 kilowatts), and it works at its maximum for one hour, it will have made 5 kilowatt-hours of electricity.
Most solar panels work at their maximum for about 4 to 6 hours per day, depending on where you live and the time of year. So, a 5 kilowatt system could make between 20 and 30 kilowatt-hours in a day.
In a month, that's between 600 and 900 kilowatt-hours!
Why should you care about kWh?
Knowing how many kWh your solar panels make, and how many you use, can help you understand if your panels are making enough electricity for your home.
Let's say your panels make 600 kWh in a month, but your home uses 800 kWh. That means your panels are making about 75% of the electricity your home needs. The rest will come from the power grid or a backup battery if you have one.
Also, if your solar panels make more electricity than you use, the extra goes back into the power grid. In many places, your power company will give you money or credits for that extra electricity, which can lower your electric bill even more!
In short, knowing about kilowatt-hours can help you make the most of your solar panels, understand your electricity use, and save money on your electric bills.
Net Metering Credit-How your renewable energy is being used
When you decide to go solar, it's important to understand the concept of Net Metering with your solar panels. How much energy you're using and not. Shown on your electric bills
Essentially, during daylight hours specifically peak hours, your solar panels produce excess electricity that you can sell back to your utility company.
Depends on your electric usage on how much electricity you can sell back if you have excess power as well as electricity prices
Buying and Selling Your Solar Power to Utility Company
Once the sun goes down and your system isn't producing electricity, you then purchase power from the utility company.
A well-designed system will break even at the end of the day. However, if your solar setup is larger with a bigger solar offset and your electricity usage is low, you may accumulate net metering credit from excess electricity.
In a scenario where your electricity consumption for a particular month exceeds your system's production, you have a choice.
You can either pay the excess charge outright, or you can use the credits you've earned from previous months when your usage was lower.
But if you buy a solar battery or many solar batteries. You have energy independence, meaning you have escaped all utility companies and their electricity rates. No longer grid tied, not on the electric grid or using grid electricity, no grid power. You own power.
But on top of that, all excess energy will be stored in your solar battery meaning you wont have to buy electricity from the local utility company and their increasing electricity rates.
Note that the availability and use of these credits can vary depending on your location.
You can learn more about Net Metering here
How Much is the Electric Bill with Solar Panels?
As previously mentioned, you can anticipate a grid fee as part of your solar power setup, typically billed either monthly or annually.
The primary objectives of transitioning to solar energy are twofold:
A. Lowering your monthly payments.
B. Securing a fixed payment for your electricity.
With solar power, you're essentially locking in a stable electricity rate. Solar panels save you money. Mainly to see significant savings short term and/or long term.
In 3-5 years, as your non-solar neighbor grapple with their increasing electricity bill, your rates will remain consistent with the ones you've had since installing your solar system. Everyone who doesn't have a solar system, their electric bill will be through the roof.
Why? One reason, solar panels save you money.
Therefore, it's important to understand that a grid fee is a standard part of the solar power equation. Expect that with your electric bill with solar panels.
If you require more information about this, please refer to the first paragraph above.
Electric Bill with Solar Panels
Now you learned two things today about your electric bill with your solar system.
1. Reasoning behind a high bill with solar
2. How to resolve a high bill with solar
Now with this, you know exactly your "why" and how to fix it. If you need even more help contact your local solar consultant or even us.
Always double check with your solar consultant to see if the system they quoted you fits your needs before installing solar panels. Last thing you need is to install solar panels that are undersized again and don't match your energy consumption.
Need a Solar Consultant to Guide You?
So, you've made the switch to solar energy but are still dealing with high electricity bills? It's a common scenario, but don't worry - we've got the solution. It's time to call in a solar energy consultant.
Having a solar energy system is a great start, but optimizing it to meet your specific energy needs is where a solar consultant comes in.
At One More Door Solar, we are solar consultants in Corona, CA that can help you get the maximum benefits from your existing setup and cut down those pesky bills.
Our solar energy consultants can:
1. Analyze Your Energy Use: They'll thoroughly review your energy consumption habits and find out why you're still getting high bills.
2. Assess Your Solar System: Is your solar system performing optimally? They'll check if the panels are correctly installed, positioned, and maintained for maximum efficiency.
3. Recommend Energy-Efficient Practices: They'll offer tips and tricks to reduce unnecessary energy usage and maximize your savings.
4. Guide You on Net Metering and Battery Storage: You may be generating excess solar energy during the day. A consultant can help set up a net metering system or a solar battery storage to utilize this excess energy when the sun isn't shining.
5. Help Upgrade Your System: If necessary, they'll advise on how you can upgrade your current system for better performance and increased savings.
With a solar consultant by your side, you can turn your solar energy system into a true money-saver. Don't let high electric bills overshadow the benefits of your solar panels. Get in touch with a solar energy consultant today, and start maximizing your solar savings! So whether you need solar consultants in corona or wherever you are, we will guide to eliminate your electric bill...again.