Your Electric Bill BEFORE Solar (What You're Paying Now)
Before installing solar, your electric bill is relatively simple. Here are the typical components:
| Charge Type | What It Is | Typical Cost |
|---|---|---|
| Energy charge (kWh used) | Your actual electricity consumption. Rate varies by state ($0.10–$0.35/kWh). | $80–$220/month |
| Demand charge (some utilities) | Based on your peak power draw (kW) during the month. Common for commercial, rare for residential. | $0–$30/month |
| Connection fee (fixed) | Monthly fee for grid access (covers meter maintenance, billing, etc.). | $5–$15/month |
| Taxes & surcharges | Sales tax, renewable energy fund contributions, etc. | 5–12% of total |
Your Electric Bill AFTER Solar (What Changes)
After installing solar, your bill becomes more complex (but much lower). Here's what to look for:
1. Connection Fee (Still There!)
Even with solar, you must pay a monthly connection fee (also called "customer charge" or "service fee"). This is typically $5–$15/month. It covers the utility's cost of maintaining your meter, billing systems, and grid access.
2. Net Metering Credits (The "Solar Savings" Line)
Your bill will show your net energy usage for the month:
- If you exported more than you imported: You'll see a credit (negative charge) on your bill. This credit rolls over to next month.
- If you imported more than you exported: You'll pay for the net imported electricity (at your retail rate).
Example (full retail net metering state):
- You exported 900 kWh (July production). Your utility credits you 900 × $0.25 = $225 credit.
- You imported 400 kWh (July + August evening use). Your charge is 400 × $0.25 = $100 charge.
- Net: $225 credit - $100 charge = $125 credit rolls over to next month.
3. Annual True-Up (Reconciliation)
In full retail net metering states, most utilities do an annual true-up (usually in your "anniversary month"). At true-up:
- If you have excess credits: The utility may pay you for them (at wholesale rate, typically $0.03–$0.06/kWh) OR reset them to zero (you lose them).
- If you have a remaining balance: You pay the balance (this is rare if your system is sized correctly).
Sample Electric Bill AFTER Solar (With Explanations)
Here's what a typical post-solar bill might look like (California, NEM 2.0, still under full retail net metering):
| Line Item | Amount | Explanation |
|---|---|---|
| Connection Fee | $12.00 | Monthly fixed fee (still applies with solar) |
| Electricity Imported (kWh) | 320 kWh × $0.29 = $92.80 | You imported 320 kWh from the grid (nighttime, cloudy days) |
| Electricity Exported (kWh) | -580 kWh × $0.29 = -$168.20 | You exported 580 kWh to the grid (midday surplus). This is a credit. |
| Net Charges | -$63.40 | You have a net credit of $63.40 this month. It rolls over to next month. |
| Year-to-Date Net | -$287.50 | Cumulative credit after 8 months. At true-up (month 12), you'll reconcile this. |
How to Verify Your Solar Savings (3-Step Check)
- Check your solar monitoring app: Your solar system's app (Enphase Enlighten, Tesla app, SolarEdge) shows your production. Verify that production matches your expectations (e.g., 30–50 kWh/day in summer for an 8 kW system).
- Compare your post-solar bills to pre-solar bills: Calculate your annual "before" cost and "after" cost (including connection fees). Your savings should be 50–90% of your previous bill.
- Check for errors: Sometimes utilities misconfigure net metering on your account. If your bill shows NO credits for exports, call your utility immediately.
Frequently Asked Questions About Post-Solar Electric Bills
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You still pay a connection fee ($5–$15/month) for grid access. Additionally, if your solar production doesn't cover 100% of your use (winter, cloudy periods), you'll pay for imported electricity.
Net metering shows your net electricity use — exports minus imports. If you exported more than you imported, you receive a credit. If you imported more, you pay for the difference.
In most states, unused credits roll over indefinitely. Some states (CA pre-NEM 3.0) reset credits to zero at annual 'true-up.' Check your state's policy.
Look for: (1) Connection fee (still there), (2) Electricity imported (kWh × rate), (3) Electricity exported (kWh × rate, shown as a credit). The net is what you owe or the credit you accumulate.
If your exports exactly equal your imports (net-zero), you'll only pay the connection fee. In summer (high production), your bill may show a credit that covers winter imports.
Rare, but yes — if your system is undersized, or if your utility changed rates/net metering policy after you installed. Always size your system to cover 90–110% of your annual usage.