How Do Solar Panels Lower Your Electricity Bill?

How Do Solar Panels Lower Your Electricity Bill?

June 15, 2021

One of the most talked-about aspects of home solar energy is the financial benefits. The opportunity to lower your monthly electricity bills via home solar panels is one that significantly excites homeowners interested in residential solar power. 

Solar energy is truly an investment and should be treated as such. In today’s blog, let’s briefly explore how home solar panels lower electricity bills and dispel a few myths along the way.

Solar Panels will most likely NOT eliminate your electric bill completely.

Myth: Solar Panels Eliminate Electricity Bill

So, let’s get this myth out of the way first. Residential solar panels will most likely not eliminate your electricity bill completely. Various factors influence your monthly utility bill, regardless of how much solar energy your household uses.

These factors include monthly meter readings, equipment, billing, and any maintenance costs associated with your electric company or local grid. So, unless you plan on cutting ties with your local electric company for good, you will most likely still see a minimum service charge every month.

Also, your home may require grid energy from time to time, especially if you are slowly building your home solar system and starting without solar battery storage options. However, all of these charges are potentially much lower with solar panels installed.

Okay, So How Do Solar Panels Lower My Electricity Bills?

Excellent question! Essentially, and as you probably already know, solar panels produce natural energy that comes directly from photons with the rays of sunlight that strike your PV panels. Once these panels have produced DC electricity, your solar inverter converts that energy into AC electricity, feeding it into your home.

Every household requires a different amount of panels to run without grid energy.

As long as this process works uninterrupted, your home will effectively run off of as much solar power as your system can produce at any given time. Usually, this is dependent on the time of day and the number of panels installed on your roof. Every household is different, requiring a specific number of installed panels to run without grid energy.

Your electricity bill is primarily based on how much energy your home draws from the grid – the less your home taps into the grid, the less you are charged monthly. It’s as simple as that. 

Excess energy, not used by your home, can either be fed back into the grid in exchange for monthly billing credits (net metering) depending on your local regulations or can be stored for short-term future use, such as nighttime power and short-term power outages.

Low Maintenance, Less Hassle

We’ve all been there – spending hours on hold with our utility companies, typically over a simple grid-based system maintenance fix.

Once solar panels are installed, they rarely require additional maintenance. And, in the rare case that your solar panels require additional support, many local solar installation companies, such as BlueSel, offer incredible maintenance warranties right out of the gate. If you experience any issues within 25 years of purchasing a SunPower solar system and having it installed by BlueSel, our certified technicians will promptly work with you to resolve the issue. 

This makes home solar a mostly one-time investment in reducing future utility costs, including lowering your electricity bill and in running your home off of a clean, renewable energy source.