How to Read Your Electric Bill With Solar

Understanding an electric bill with a solar energy system involves new details. These bills report both energy drawn from and contributed to the grid. Deciphering these statements helps homeowners understand energy usage and evaluate their solar investment. This article clarifies how to interpret a solar electric bill and reconcile it with your solar system’s output.

Key Concepts in Solar Billing

Solar billing differs from traditional electricity billing due to the interaction between solar production and the utility grid. Net metering is a primary concept, crediting solar system owners for electricity added to the grid. Under net metering, your electric meter tracks both consumed and exported electricity. This allows a two-way flow, where the utility credits your surplus generation.

When solar panels generate more electricity than consumed, this surplus is excess generation. This energy is exported to the grid, and your account receives credits. These credits offset electricity drawn from the grid at other times, reducing monthly charges. Many utilities allow credits to roll over monthly or annually, though policies vary on how unused credits are handled.

Most solar customers will still encounter minimum charges or fixed fees on their electric bills. These charges cover utility costs for grid infrastructure, meter reading, and customer service. Such fees ensure all grid-connected customers contribute to the electrical system’s upkeep. These fixed components mean a home with high solar production might still see a baseline charge.

Time-of-Use (TOU) rates price electricity differently based on time of day, week, or season. Under TOU rates, electricity consumed during peak demand periods costs more per kilowatt-hour (kWh) than off-peak hours. For solar homeowners, the value of exported and imported electricity fluctuates by time. Managing consumption to align with off-peak hours or maximizing solar self-consumption during peak export times enhances financial benefits under TOU rates.

Understanding Your Solar Electric Bill

The account summary section provides a concise overview of your billing period, total amount due, and payment due date. It highlights any previous balance, payments received, and new charges for the current period. This section gives a clear picture of your account status.

The usage summary or energy consumption section details electricity flow between your home and the grid. It shows total kilowatt-hours (kWh) consumed from the grid when solar production was insufficient. Conversely, it shows total kWh of excess solar energy exported back to the grid. The difference indicates your overall reliance on or contribution to the grid.

Generation or export credits are a crucial component for solar customers. These appear as deductions for excess electricity sent to the grid. Credits reflect the monetary value of exported solar energy, offsetting imported electricity costs. The bill specifies how credits are applied, either reducing current charges or carrying forward to future cycles. This impacts your monthly bill and overall savings.

Electric bills separate charges into delivery and supply charges. Delivery charges cover transporting electricity through the utility’s infrastructure to your home. Supply charges represent the cost of the electricity itself. Solar production directly reduces supply charges by decreasing purchased electricity. Delivery charges are less affected, as they are fixed costs for grid access and maintenance.

Fixed charges and fees are regular line items on your bill, unrelated to energy consumption or solar production. These charges cover administrative costs, meter maintenance, and utility infrastructure expenses. They typically remain consistent each month, regardless of solar generation or grid draw. Understanding these fixed costs helps project minimum monthly utility expenses.

Taxes and surcharges are applied to the net bill amount after credits and charges. These governmental assessments include state and local taxes, and fees for public benefit programs like energy efficiency or renewable energy development. Taxes and surcharges vary by jurisdiction and are itemized separately. They apply to net energy usage, ensuring solar customers contribute to these programs.

Reconciling Your Bill with Solar Production Data

Comparing electric bill data with your solar monitoring system verifies performance and energy consumption. Your solar monitoring platform provides detailed insights into total electricity production in kilowatt-hours (kWh). Cross-reference this production figure with “energy exported” or “excess generation” amounts on your utility bill. This confirms the utility accurately credits you for power sent back to the grid.

Discrepancies between solar monitoring data and utility bill exported energy figures can occur. One reason is self-consumption, where solar electricity is used by appliances before being exported. Differences in billing cycles versus monitoring periods, or slight variations in meter calibration, can also lead to small variances. These minor differences are generally expected and do not indicate an error.

Tracking savings requires analyzing your solar electric bill by comparing current net charges to a hypothetical bill without solar. This involves identifying avoided supply charges due to solar production and the value of export credits. This comparison helps quantify the financial benefits from your solar investment.

If you observe significant discrepancies between solar production data and your electric bill, contact your utility company. Large differences in reported export amounts or unusual billing patterns may warrant investigation. Providing specific dates and figures from both your bill and monitoring system can help resolve potential issues.