Why is My Electric Bill So High With Solar Panels?
If you're wondering why your utility company gave you a negative bill for having solar panels installed, there are several possible reasons. First, your panel installation was likely covered by Net Meter credits. But did you know that you can also put back the extra energy you generate into the grid? Read on for more information. Using solar power to reduce your electric bill can result in net-zero bills within a few years!
Negative bill from the utility company for solar panels
You may have already heard of the "negative electric bill" from your utility company regarding solar panels. But what does this mean? How does solar power lower the price of electricity? In a nutshell, solar panels produce energy from the sun, and so you will end up paying less for electricity than you would have before. The average homeowner in Texas will save $12,461 from his or her utility bill over the next twenty years.
When installing solar panels, many local utility companies give you the option of paying for the electricity you generate on a yearly cycle. The yearly billing cycle begins on the date your solar panels turn on and ends on the same date. This cycle is called a "true-up" bill because it shows your energy credits and your energy use. You may also receive a quarterly statement in some cases.
Credits net meter
You may wonder, "Why are my electricity bills so high after installing solar panels in your house?" You probably have no clue. You may have used electrical appliances less often than you think, or you may be using old electrical appliances that don't use as much energy. You can reduce your electric bill in several ways. Start by determining how much electricity is used during peak times.
Your net bill will show you how much energy you have sold to utilities. The solar electricity bill shows you the difference between how much you have sold and how much you bought. You'll see a credit if your energy is being sold. If you have purchased energy you will have a balance you have to repay. But if you're buying electricity from the grid, your bill won't tell you how much energy you've used. Your utility calculates the amount you have bought from the grid based on how much energy you use.
kWh received section on your monthly electricity bill
When you have installed solar panels on your property, the kWh received in a section of your monthly electricity bill will be different from the kWh used section. The kWh received will reflect the amount of kWh generated by the solar panels as well as the amount you used. It is good news because it will save you money. The kWh you receive should be included in your monthly electric bill. However, there are two types of kWh.
You won't pay extra for electricity that you do not use. You should see the negative kWh earned section of your monthly electric bill if your solar panels work properly. This means that you are a net supplier of electricity to your utility company. In this scenario, you can either apply your negative bill to your next bill or simply pay your utility company for the energy you use. If you don't use any energy, your utility company will bill the minimal monthly fee.
Adding extra energy back to the grid
Adding solar energy to your home can cut your utility bills. Many utilities offer net energy meters, which allow you to send surplus energy back into the grid. This will allow you to earn credits toward future electric bills. Net energy metering allows you to send excess energy back into the grid even when it isn't being used. The utility then applies the credits toward your next power bill. You might think this is a waste, but it's a great way to lower your bill while still being able to enjoy the benefits of a solar installation.
While your power company may record all of your communications with the grid, they will not report how much energy you consume at home. Therefore, if your solar PV system does not have a battery backup, you will lose power during an outage for safety reasons. Outages could be dangerous for crews working on a broken pipe. There might also be a lag between installing your solar system and receiving your first bill. You will receive your first bill and the utility will track your energy flows. However, you won't know how much until then.
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