Average Monthly Electric Bill After Solar Installation

January 25, 2024 | Reading Time: 9 minutes

We always mention the reduced electricity costs a homeowner will see after making the transition to solar so you’re probably wondering just how much you can save. This value is highly specific to your system and your home, but we’ve outlined the common factors.

Contributing Factors of Electric Bills After Solar Installation

System Size

The size of your solar energy system is directly related to the amount of electricity it can produce. A larger system is capable of producing more electricity while a smaller system is more limited in terms of energy generation.

As long as your system is equal or bigger than your home’s energy usage, you will likely see a significant reduction in monthly electricity costs.

Household Consumption

It is beneficial for the solar system’s size to outweigh the average energy consumption of the household. This would ensure that the system is producing more energy than the household is consuming and therefore, result in a low, balanced, or even surplussed electricity bill.

It’s important to consider your future consumption as well. If you plan on eventually charging an electric vehicle or heating a pool, you’ll want to size up your system to ensure it’ll cover the increased electricity demand in the future.

Geographic Location

A home’s location can greatly impact the production rate of a solar system. Sunnier locations are favorable to energy production and can potentially decrease electric bill costs more than cloudier locations.

Positioning and angling your panels to optimize their sun exposure is the best way to ensure your panels are producing as much energy as they can.

Net Metering Policies

Some utility companies offer net metering, a program that allows homeowners to receive credits on their electric bills in exchange for excess energy produced by their renewable energy source. This excess energy is sent to the grid and in return, the homeowner would receive a credit of free energy from their utility company.

This program is extremely effective in balancing a solar system’s dependence on the grid and the grid’s dependence on a solar system.

Solar paneled homes in areas with net metering programs typically see lower electricity bills because built up credits can be used during the night or through periods of less sun rather then having to tap into the grid for new energy.

Electricity Rates

Electricity rates vary depending on the utility company and area they’re supplying. Areas with higher electricity rates will typically see more return on their investment of their solar panels than areas with low electricity rates.

It’s important to note however, that electric rates can change at anytime. A fixed monthly payment on a solar system until it’s paid off and a lifetime of free electricity after, is definitely more predictable than a long-term subscription to traditional electricity.

Frequently Asked Questions: Electricity Bills After Going Solar

Do I still pay an electric bill with solar panels?

If your solar energy system is connected to the grid, as most systems are, you will still receive an electric bill each month.

The difference will be in the payment you owe. Oftentimes, electric bills after solar installation are zero or credited through net-metering, meaning the homeowner sent more electricity to the grid than they consumed.

On the opposite end of the spectrum, it’s also possible to owe the grid after consuming more energy than the system produced in less sunny months.

Therefore, installing solar does not necessarily waive you from payments to the grid. However it is highly possible for your system to consistently produce more energy than you consume and you’ll end up getting credited after each pay period instead of owing them.

How much will my electric bill be with solar panels?

It’s hard to predict your future electric bills after installing solar panels because they are dependent on numerous factors.

But if your system is scaled to your home’s consumption, then a 100% reduction in your electric bill is very possible.

How much will I save on my monthly electric bill after installing solar panels?

The precise amount you will save on your monthly electric bills after installing solar will vary widely depending on a number of factors.

Homeowners who install solar often see a range of savings throughout the calendar year as seasons change and their panels’ exposure to sunlight fluctuates.

As a ballpark estimate, you can expect to save 20% to 100% on each electric bill after making the switch to solar.

How can I increase my savings on my electricity bill after going solar?

The best way to maximize your savings on monthly electricity bills after going solar is to utilize a battery storage system and participate in excess energy incentives.

Batteries Benefit Your Budget

Equipping your solar panels with a battery storage system is a sure way to increase your savings on electricity. This is because in times of high production and low consumption, the excess does not go to waste. Instead, you can store that energy or send it to the grid for energy credits. In times of low production and high consumption, having a battery is helpful to tap into when more energy is needed instead of calling upon the grid.

Incentives for Excess Energy

There are a couple incentives you may qualify to participate in if you add a battery to your solar system.


ConnectedSolutions is an incentive program that offers up to $5,000 per battery for five years of excess energy dispatched to the grid. Essentially, your battery will discharge energy to the grid during times of high demand and you will be compensated.

While this program will not directly save you money on your electric bill, these annual payments certainly can offset your costs.

Learn more about ConnectedSolutions.

Net Metering

Participating in net metering while also utilizing a battery is highly beneficial for saving money on grid electricity. You’ll end up sending more electricity to the grid than the amount you’ll intake since a majority of your energy will be sourced directly from your panels or from what’s stored in your batteries.

Since you’ll be sending so much to the grid, your credits will stack up and you’ll get to use them in lower production time periods.

Policies vary by state. Learn more about net metering in Massachusetts and Rhode Island.

Bright Savings: The Sunny Side of Going Solar

Working with an experienced and knowledgable solar installer is crucial to ensuring electrical savings after going solar. They must be able to recognize your household’s energy needs and develop a custom system that exceeds your expectations.

At Isaksen Solar, we’re pride ourselves on our exceptional customer service and experience. We strive to provide you with the smoothest and most satisfactory solar transition you’ll ever make. Whether your goal is to save money or save the environment, we assure you you’ll be able to do that and so much more with your home solar system.

We’ve installed hundreds of systems that have enabled homeowners to achieve net-zero status, meaning paying for electricity is a thing of the past. If you want to be next, give us a call, (508) 717-3820, or request your free quote today.