What’s the Average Electric Bill with Solar Panels?

If you type “average monthly electric bill with solar panels” into a search bar, you’ll get a number. Maybe $50. Maybe $30.

Maybe a headline that says “zero dollars.” The problem is, none of those numbers apply to your house. Your bill depends on where you live, how much power you use, when you use it, and exactly how your utility treats solar customers. A national average is a trap.

The U.S. Energy Information Administration (EIA) reports that the average American household uses about 886 kilowatt-hours (kWh) per month. But that number hides massive variation.

A home in Phoenix with air conditioning and a pool uses twice that. A small apartment in San Francisco uses half. Your solar bill depends on your specific numbers first.

Let’s walk through the variables that determine what you will actually pay.

Quick Answer

The average monthly electric bill with solar panels depends on your system size, local rates, and net metering rules. Most homeowners see bills between $10 and $50. Some even get credits.

There is no single answer. Your specific variables determine the outcome.

Trust Your Gut: Why the “Average” Monthly Bill Doesn’t Apply to You

So why can’t you just Google “average monthly bill with solar panels” and get a straight answer? Because the number is built on assumptions that probably don’t match your situation. The biggest variable is your utility company’s net metering policy.

Some states require utilities to credit you at the full retail rate for every kilowatt-hour you send back to the grid. Others pay you a wholesale rate, which is far lower. Some utilities have closed their net metering programs entirely to new customers.

The second trap is the fixed grid connection fee. Even if your solar panels produce every kilowatt-hour you use, you still pay a monthly charge just to stay connected to the power lines. That fee ranges from $5 to $30 depending on your utility.

That is your floor. You will never have a $0 bill unless your utility offers a zero-fee plan, which is rare.

State policies also shift the math. A homeowner in Massachusetts with the SMART program gets a different monthly outcome than someone in Texas on a retail export plan. Our research shows that the same 6 kW system can produce a $15 bill in one state and a $90 bill in another.

The national average is meaningless. You need to look at your own tariff and your own usage.

If you want to understand the equipment behind the numbers, take a look at the different types of solar panels available. The panel type and wattage directly affect your monthly production and your eventual bill.

The Two Big Branching Points: Net Metering vs. Net Billing and Your Rate Tariff

This is the most important decision branch in the entire process. Your monthly bill boils down to one question: how does your utility pay you for the electricity you send back to the grid?

Net Metering (Full Retail Credit)

Under traditional net metering, every kilowatt-hour you export earns a credit at the full retail rate. That means a kWh you send to the grid at noon cancels out a kWh you pull from the grid at night, dollar for dollar. If your system is sized correctly, your monthly bill can be just the grid connection fee.

This is the best case scenario. As of 2026, fewer states offer full retail net metering than a decade ago. Many have caps or are phasing it out.

Net Billing (Wholesale or Reduced Rate)

Under net billing, your exports are credited at a lower rate, often the wholesale cost of electricity. You might get 3 to 8 cents per kWh for what you export, while you still pay 12 to 30 cents per kWh for what you import. That mismatch means your bill will be higher even if you produce as much as you consume.

You need to shift your usage to daytime hours or add battery storage to improve the math.

Time-of-Use Rates

Many utilities now charge different rates depending on the time of day. Peak hours, usually late afternoon and early evening, cost more. Off-peak hours, overnight and midday, cost less.

If your solar panels produce during off-peak hours but you use power during peak hours, you lose money on the exchange. Some utilities also charge demand fees based on your highest single hour of usage each month.

Here is a quick comparison of the two main scenarios:

The type of tariff you are on determines your entire strategy. For a full rundown of the tradeoffs, see the advantages and disadvantages of solar panels in different regulatory environments.

How to Calculate Your Actual Post-Solar Bill: A Step-by-Step Workflow

You can estimate your own bill with a little bit of math. You do not need a solar calculator or a salesperson. Here is the workflow.

Step 1: Pull 12 Months of Utility Bills

You need your actual usage, not an estimate. Log into your utility account and download every bill for the past year. Look for the column that says “kWh used” or “total consumption.” Add up all 12 months.

Divide by 12 to get your average monthly usage. This is your baseline.

Step 2: Find Your Monthly Production Ratio

Your solar installer can give you an estimated annual production number for the system you are considering. Divide that by 12 to get a rough monthly average. But production is not flat.

Summer months produce more. Winter months produce less. A good installer will give you a month-by-month breakdown.

Step 3: Compare Production to Usage

If your system produces 800 kWh per month on average and you use 900 kWh, you will import 100 kWh from the grid. Multiply that by your retail rate. Add your grid connection fee.

That is your approximate bill. If your system produces 1,000 kWh and you use 800, the extra 200 kWh is exported. The value of those exports depends on your net metering or net billing rate.

Step 4: Read Your Monthly Statement

After your system is live, your utility bill will show two numbers: energy imported from the grid and energy exported to the grid. Some bills also show a net number. The difference, multiplied by your rate, plus the grid fee, is your monthly charge.

If you have a time-of-use tariff, the math gets more complex because the import and export rates vary by hour.

Understanding the main components of a solar panel system, including the inverter and monitoring equipment, helps you read your production data accurately.

The “Still High” Branch: When Adding a Battery, Load Shifting, or Oversizing Saves More

Sometimes you do the math and your monthly bill is still higher than you expected. That is a signal that your current setup does not match your tariff. You have three options.

Add a Battery

If you are on a net billing tariff, a battery lets you store your solar power during the day and use it at night when rates are high. That avoids importing expensive grid power. The battery also helps you dodge peak demand charges if your utility charges them.

Battery costs have dropped significantly in recent years. A 10 kWh battery can eliminate most of your evening grid purchases.

Shift Your Load to Daytime

If you are home during the day, you can run your dishwasher, laundry, and EV charging when the sun is up. That increases your self-consumption rate. Every kWh you use directly from your panels is one you do not import at the retail rate.

This is the cheapest way to lower your bill. It costs nothing but a change in habit.

Oversize Your System

Some homeowners choose to install a system that produces more than 100% of their annual usage. This is legal in most areas, though some utilities cap the system size. The extra production earns credits during sunny months.

Those credits offset winter months when production is low. Oversizing by 10 to 20 percent can smooth out your annual bill significantly.

The decision between these options depends on your specific situation. If you are on full retail net metering, load shifting is less important. If you are on net billing with high peak rates, a battery often pays for itself faster.

Learn more about how solar panels generate electricity to understand how timing affects your system’s output.

Common Mistakes and Hidden Charges That Inflate Your Monthly Solar Bill

Even a well-designed system can produce a disappointing bill if you overlook these details.

The Non-Bypassable Grid Connection Fee

This charge appears on every utility bill. It covers the cost of maintaining the power lines and grid infrastructure. You pay it regardless of how much solar power you produce.

Some utilities call it a “basic service charge” or “customer charge.” It is usually $10 to $25 per month. Do not forget to include it in your savings estimate.

Assuming Overproduction Earns Retail Credits

If you are on a net billing tariff, your excess kWh might be worth very little. Some utilities pay as low as 2 cents per kWh for exports. That is a fraction of the 15 to 30 cents you pay for imports.

Check your tariff carefully before you assume your excess production is valuable.

Ignoring Winter Production Drops

Solar panels produce less in winter. Days are shorter. The sun is lower in the sky.

Snow cover can block production entirely. If your system is sized to produce 100% of your annual usage, you will likely have a bill in December and January. That is normal.

You need to plan for it by banking credits during summer months or by oversizing.

Forgetting About Time-of-Use Rate Changes

If your utility has peak hours from 4 PM to 9 PM, and your panels stop producing around 5 PM, you are importing power during the most expensive hours. Your bill will be higher than you expected. You need to check when your peak hours are and whether your solar production overlaps with them.

For a complete overview of the entire process from choosing equipment to installation, check out the solar panel buying guide before you make any decisions.

Real-World Scenarios: The $15 Bill, The $50 Bill, and The $150 Bill

Numbers make more sense when you see them in action. Here are three real scenarios based on common utility policies and usage patterns.

Scenario A: Full Retail Net Metering

A homeowner in a state with traditional net metering installs a 7 kW system. Their average monthly usage is 900 kWh. The system produces 950 kWh per month.

They export 200 kWh during the day and import 150 kWh at night. Net metering cancels them out. The bill is just the grid connection fee of $15.

This is the best case. It is becoming less common as states phase out full retail net metering. If you have this policy, enjoy it.

Scenario B: Net Billing with Wholesale Export Rate

A homeowner in a net billing state has the same 7 kW system and uses 900 kWh per month. The system produces 950 kWh. They export 200 kWh at a wholesale rate of 4 cents per kWh.

They import 150 kWh at a retail rate of 15 cents per kWh. That is $8 in credits against $22.50 in charges. Add the grid fee of $15.

The bill is $29.50.

The exact number depends on the export rate in your area. Some utilities pay as low as 2 cents per kWh.

Scenario C: Low Production, Electric Heat, and EV

A homeowner in the Northeast installs a 6 kW system. Their monthly usage is 1,200 kWh, driven by a heat pump and an electric vehicle. Winter production drops to 400 kWh per month.

They import 800 kWh at 20 cents per kWh. That is $160. Add the grid fee of $20.

The bill is $180.

This scenario is common for high-energy households in cold climates. The solution is often oversizing the system or adding battery storage to capture summer credits for winter use.

Frequently Asked Questions

Can my electric bill be $0 with solar panels?

Only if you have full retail net metering and a utility that waives the grid connection fee. Most utilities charge a monthly fee of $10 to $25 regardless of production. A $0 bill is rare.

Do I still pay electricity bills if I have solar panels?

Yes. You pay the grid connection fee every month. You may also pay for any electricity you import from the grid that exceeds your solar production.

Most homeowners see a bill between $10 and $50.

What happens to my unused credits at the end of the year?

That depends on your utility. Some roll over credits indefinitely. Others pay them out at a wholesale rate at the annual true-up.

Some utilities forfeit unused credits. Check your interconnection agreement.

How much does a solar panel system reduce my monthly bill?

A properly sized system can reduce your bill by 70 to 100 percent of your electricity charges. The grid connection fee remains. The actual savings depend on your local rates and net metering policy.

Does weather affect my monthly bill with solar panels?

Yes. Cloudy weeks and winter snow reduce production. Your bill will be higher in those months.

You can offset this by banking credits during sunny months or by installing a battery.

Should I oversize my system to eliminate my bill entirely?

Oversizing by 10 to 20 percent can help smooth out winter bills. But some utilities cap system size or limit how much excess production you can credit. Check your local rules before oversizing.