The average monthly electric bill in the United States is $146.92, according to the Energy Information Administration. However, the cost of your electric bill can vary depending on several factors, including the size of your home, the climate you live in, and your energy usage habits.

Switching to solar energy is one of the best ways to reduce your electricity costs and contribute to a greener planet. But how much can you save? In this article, we’ll explore the average monthly electric bill with solar panels, how solar panels reduce electricity costs, and the factors that affect your savings. Let’s dive in!

If you have solar panels installed on your home, you can expect to see a significant reduction in your monthly electric bill. The average monthly electric bill for a home with solar panels is $37.50, according to a study by EnergySage.

Here is a simple guide for you if you want to know what will be your average monthly electric bill with solar panels in the US.

Understanding the Average Monthly Electric Bill with Solar Panels

When you install solar panels, your average monthly electric bill can drop significantly. On average, homeowners with solar panels save between 50% to 90% on their electricity bills. For example, if your current monthly bill is 150, you could see it reduced to as low as 150, you could see it reduced to a slow as 15 to $75 after going solar.

However, the exact savings depend on several factors, such as your energy consumption, the size of your solar system, and your location. Additionally, net metering allows you to earn credits for excess energy your panels produce, further lowering your costs.

How Solar Panels Reduce Electricity Costs

Solar panels generate electricity from sunlight, which means you rely less on your utility company for power. Here’s how they help reduce your monthly energy bill after solar installation:

1. Lower Energy Consumption: Solar panels produce free electricity, reducing the amount you need to buy from the grid.
2. Net Metering: If your panels produce more energy than you use, the excess is sent back to the grid, and you earn credits.
3. Solar Panel Efficiency: Modern solar panels are highly efficient, converting more sunlight into usable energy.
4. Long-Term Savings: While there’s an upfront cost, solar panels pay for themselves over time through solar power bill reduction.

How much can you save on your electric bill with solar panels?

The amount of money you can save on your electric bill with solar panels will depend on some factors, including:

• The size of your solar panel system: The larger your solar panel system, the more electricity it will generate and the more money you can save on your electric bill.
• The amount of sunlight your home receives: If your home receives a lot of sunlight, your solar panels will generate more electricity and you can save more money on your electric bill.
• Your energy usage habits: If you can reduce your energy consumption, you can save even more money on your electric bill with solar panels

For example, let’s say you have a 7.5 kW solar panel system and your home receives an average of 5 peak sun hours per day. Your solar panel system will generate an average of 37.5 kWh of electricity per day.

If your electric utility company charges you $0.17 per kWh, you can save $6.48 per day on your electric bill. This means that you can save $194.40 per month on your electric bill with solar panels.

Factors that affect your monthly electric bill with solar panels

In addition to the factors listed above, there are a number of other factors that can affect your monthly electric bill with solar panels, such as:

Net Metering:

Net metering is a billing policy that allows you to sell excess electricity generated by your solar panels back to your electric utility company. This can further reduce your monthly electric bill.

Time-of-use (TOU) Rates:

TOU rates are electricity rates that vary depending on the time of day. If you have TOU rates, you can save money by using more electricity during off-peak hours.

Battery Storage:

If you have battery storage, you can store excess electricity generated by your solar panels and use it at night or during power outages. This can further reduce your monthly electric bill and make you more energy independent.

Here is the Table to Look Out:

Scenario	Monthly Bill Before Solar ($) \$	Solar System Size (kW) \	Monthly Bill After Solar (Low) ()	Monthly Bill After Solar (High) ($)
Low Energy User	50	5	10	20
Average Energy User	100	6	30	40
High Energy User	150	7.5	50	60

Also Read: 5 Best Solar Exhaust Fan For Greenhouse 2023: Harnessing Sustainable Ventilation

Factors That Affect Solar Energy Savings

Not everyone saves the same amount with solar panels. Here are the key factors affecting solar power savings:

1. Energy Usage: The more electricity you use, the more you can save with solar panels.
2. System Size: Larger systems generate more electricity, leading to greater savings.
3. Location: Sunnier areas like California or Arizona see higher solar panel electricity savings compared to cloudy regions.
4. Utility Rates: If your local utility charges high rates, your savings will be more significant.
5. Net Metering Policies: Some states offer better net metering programs, increasing your savings.
6. Solar Panel Efficiency: High-efficiency panels generate more power, reducing your average energy consumption with solar panels.

Real-Life Examples: How Much Can You Save?

Let’s look at some real-life examples to understand the average monthly electric bill with solar panels:

• Example 1: A homeowner in California with a 200monthlybillinstallsa6kWsolarsystem.Afterinstallation,theirbilldropsto200monthlybillinstallsa6kWsolarsystem.Afterinstallation,theirbilldropsto20 per month, saving $180 monthly.
• Example 2: A family in Florida with a 150monthlybillinstallsa5kWsystem.Theirbillreducesto150monthlybillinstallsa5kWsystem.Theirbillreducesto30, saving $120 monthly.

These examples show how solar panel ROI can vary based on location and energy usage.

Additional Costs & Considerations

While solar panels can significantly reduce your utility bill with solar power, there are some additional costs to consider:

1. Upfront Costs: Solar panel installation can be expensive, but federal tax credits and incentives can help offset the cost.
2. Maintenance: Solar panels require minimal maintenance, but occasional cleaning and inspections are necessary.
3. Battery Storage: Adding a battery storage system can increase your savings but comes with an additional cost.
4. Grid-Tied vs. Off-Grid: Grid-tied systems are more common and cost-effective, while off-grid systems are ideal for remote areas but require batteries.

Conclusion

The average monthly electric bill for a home with solar panels is $37.50. However, the amount of money you can save on your electric bill with solar panels will depend on a number of factors, such as the size of your solar panel system, the amount of sunlight your home receives, your energy usage habits, and the net metering policy in your area.

If you are considering installing solar panels on your home, be sure to do your research and compare quotes from different solar panel installers.

You can also use the Solar Energy Industries Association’s (SEIA) Solar Savings Estimator to get an estimate of how much money you can save on your electric bill with solar panels.

Tips for Reducing your Electric Bill with Solar Panels

• Make sure your solar panels are properly maintained. This includes cleaning them regularly and inspecting them for any damage.
• Use energy-efficient appliances and light bulbs. This will help to reduce your overall energy consumption and save you money on your electric bill.
• Unplug electronics when they’re not in use. Even when electronics are turned off, they can still consume electricity. Unplugging them when they’re not in use will help to reduce your energy consumption and save you money on your electric bill.
• Make your home more energy-efficient. This can be done by adding insulation, sealing air leaks, and planting trees around your home to provide shade.

By following these tips, you can reduce your monthly electric bill with solar panels and save even more money on your energy costs.

Also Read: How to Charge a Solar Battery With Electricity 2023 – Simple Guide