The decision to switch to solar energy is often driven by the desire to reduce electric bills. The concept is quite straightforward: if your solar panels can generate more electricity than your home consumes, you would not have to rely on the power grid and, as a result, would not have to pay any electric bills. It’s a win-win situation for both the environment and your finances.

Installing solar panels can help reduce electric bills but will not eliminate them. The amount of electricity you use, your daily energy usage habits, and fees from the utility company will still be factors in determining the cost of your bill. However, by adding solar panels and energy storage system, you can offset the amount you need to purchase from the utility company, which can result in savings energy costs.

4 Reasons Why Your Electric Bill Still Exists

Many believe installing solar panels in their homes means they will no longer have to pay for electricity. However, this is not entirely true. Unless your home is completely off the grid, you will receive an electricity bill every month, an extremely rare and expensive scenario. There are several reasons why this is the case, including the following:

1. Cloudy Days & Nights

Even with solar panels, the primary reason for receiving an electricity bill is that they depend on sunlight to generate power. Without sufficient sunlight, your solar panels may not produce enough electricity to meet your energy needs, resulting in the need to supplement with electricity from the grid.

While solar panels are a great way to generate electricity, the reality is that the sun doesn’t shine all the time. Even on sunny days, the sun sets every night, which means that your home will still need electricity from the utility grid unless you plan on never using electricity at night or on stormy days. This means that even if your solar panels are working at their best, you’ll still receive an electricity bill each month.

Going solar and remaining connected to the grid is a great way to utilize the benefits of solar power while still having access to additional energy as needed. This is often referred to as “grid-tied” solar, and it allows you to use the power you generate from your solar panels, and when you need more power than your panels are generating, you can pull from the grid. Additionally, any excess power you generate can be sent back to the grid for credit on your utility bill, known as net metering.

2. Utility Service Charges

A “grid-tied” solar system is the most common choice for residential properties. It allows homeowners to use the electricity generated by their solar panels and supplement it with power from the utility grid when needed. This ensures a steady and reliable power supply for the home, even when the solar panels may not produce enough electricity, such as at night or on cloudy days.

A “grid-tied” solar system is the most popular choice for residential properties because it allows homeowners to use the electricity generated by their solar panels and supplement it with power from the utility grid when needed. This ensures a steady and reliable power supply for the home, even when the solar panels may not produce enough electricity, such as at night or on cloudy days. However, being connected to the grid also means you will receive a bill from the utility, even if you only used electricity generated by your solar array. The bill includes various service charges and other fees on top of electricity prices, some of which are charged regardless of how much electricity you use.

Your electricity bill’s actual fees and amounts can vary depending on your local utility company and your usage. However, some common charges you may see on your bill include the following:

Customer Service Charge: This charge covers expenses related to reading meter and maintenance of accounts as well as billing, customer support and general utility operation. It’s usually an unassailable charge paid every month.

Distribution Cost: This cost covers the cost of maintaining and building the distribution of electricity, including transformer stations, overhead power lines and underground power lines. The amount charged is typically determined by your usage but may vary based on your electrical power.

Transmission Charge: This charge covers the cost of high-voltage transmitters used to carry electricity from the generating station to your home. This charge is typically assessed per kilowatt hour and can vary depending on your location and the distance from the generating station.

3. Absence of Solar Battery Storage

If you have solar panels installed within your home, there are occasions when you produce more energy than what your home requires, particularly during times of high sun. If you install the batteries for solar power, you can conserve this extra energy and then use it after the sun isn’t shining. This lets you maximize the value of the solar energy system you have installed by reducing your dependence on the traditional grid.

However, even having a Solar battery system that stores energy, it might not be economically feasible to build enough battery capacity to run your home for long periods. It’s usually more economical to have a battery available normally while having the grid ready in case you require more energy.

On the other hand, if you don’t have a solar battery storage system installed, you won’t be able to use that extra energy at night, so you’ll have to draw it from the utility grid. This can lead to additional costs, as you’ll be charged for that usage. Thus, installing a solar battery storage system can help you save money by reducing your reliance on the traditional grid.

4. Absence of Net Metering

Net metering is a program that allows you to earn credits for the excess solar energy your home generates. When your solar panels produce more electricity than your home needs, this excess energy is sent back to the utility grid. Your electricity provider then credits your account for the electricity you’ve contributed to the grid.

The value of these credits can vary depending on your electricity provider, their net metering program terms, and your electric rate. The program’s goal is to allow you to use these credits to offset the cost of electricity you need to pull from the grid in the future.

However, if your electricity provider doesn’t offer a net metering program, you’ll miss out on the opportunity to earn credits for your extra electricity. This means that when you need to draw from the grid at night or during stormy days, you’ll have to pay for that usage instead of having the credits cover it.

Utilizing Solar Panels to Reduce Your Electric Bill

The connection between the amount of electricity your solar panels produce and the size of your electric bill is determined by the balance between your usage and generation. While you can’t change how much electricity your panels generate, there are steps you can take to reduce your bill, such as using less electricity.

Reduce Your Energy Usage

Reducing the amount of electricity you use is crucial in decreasing your electricity bill. You can do this by implementing certain practices such as:

• Setting a schedule for your heating and cooling system using a programmable thermostat.
• Switching to more energy-efficient lighting options, such as LEDs.
• Conducting a home energy audit to identify areas of improvement and cost-saving opportunities.
• Unplugging appliances and devices when they are not in use.

Adding Solar Battery Storage

Investing in solar battery storage can capture and utilize excess electricity generated by your solar panels. This can maximize your solar panels’ potential, allowing you to benefit from your excess generation even when there is no sunlight. The stored electricity can be used during nighttime or cloudy days, reducing the need to draw power from the utility grid.

Additionally, solar battery storage can reduce your reliance on the utility grid, potentially leading to cost savings on your electric bills. Additionally, it can also provide a backup power source during power outages. Overall, solar battery storage is a smart investment for homeowners with solar panels, as it allows you to fully utilize the energy generated by your solar panels and gain greater control over your energy usage. Furthermore, it can contribute to more sustainable energy use and a lower carbon footprint.

Enrol in Net Metering

Net metering enables homeowners to send excess power generated by their solar panels to the utility grid in return for credits on future electric bills. These credits can be used to offset the cost of the electricity drawn from the utility grid during times when solar panels are not producing enough electricity, such as at night or during bad weather.

Conclusion

In conclusion, switching to solar energy can greatly reduce electric bills but will not eliminate the need for an electricity bill. Factors such as daily energy usage habits, fees from the utility company, and cloudy days and nights will still impact the cost of your bill. However, by producing some of your electricity through solar power, you can offset the amount you need to purchase from the utility company, which can result in savings on your overall energy costs. Additionally, incorporating an energy storage system like POMCube iCAN® NetZero can help further optimize the solar energy generated by the solar panels by storing the energy generated during the day for use at night or during cloudy days, thus reducing the dependency on the grid and further reducing the electricity bills. POMCube offers a unique advantage with its high-quality lithium battery and advanced energy management system, ensuring you get the best performance and reliability. Overall, while solar energy can greatly reduce electricity costs, it is important to understand the limitations and fees associated with remaining connected to the grid and the importance of energy storage systems in maximizing the benefits of solar energy.

The POMCube team possesses cutting-edge technologies and concepts such as independent R&D, independent innovation, Internet security, energy management, intelligent control, and big data analysis. We provide our customers with cost-effective energy storage systems that reduce the  electricity bills and make self-sufficiency. Meanwhile, with the solar energy and solar battery, it is possible to effectively reduce carbon dioxide emissions and lessen the greenhouse effect.