Sometimes, the electric bills show figures that may be very complicated to read. Too many figures, too many sections, and too many terms and conditions.
If you’re a solar homeowner, you’re in luck- this guide will show you exactly what you need to look for on your monthly statement, as well as some tips to keep your electric bill low.
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How to Read Electric Bill with Solar
Your electric bill will show two types of charges: those for energy used (kilowatt-hours, or kWh), and those for demand (peak kilowatts, or kW). Energy is what you use over time, while demand is what your solar panels produce at any given moment.
The kWh charge is easy to understand
It’s simply the amount of energy used during the billing period. The demand charge, on the other hand, is a bit more complicated.
Your solar panels will have a peak output
That is the maximum amount of power they can produce at any given moment. This is usually measured in kilowatts (kW). Your bill will show the highest demand charge for the period.
So, if your solar panels have a peak output of 10 kW and you use 2 kW of energy at any given moment, your demand charge will be 10 kW.
However, if you use more than 10 kW of energy at any given moment, your demand charge will be higher than 10 kW. The extra energy you used will be charged at a higher rate.
To save money, you should try to minimize your peak usage. This can be done by using
The demand charge is important because it’s what you’re charged for the amount of power your solar panels are capable of producing, not just the amount of energy consumption.
How to Understand the Demand Charge
The demand charge is important because it’s what you’re charged for the amount of power your solar panels are capable of producing, not just the amount of energy you use.
If you have a 5 kW solar energy system and your monthly electricity usage is 1,000 kWh, then your monthly demand will be 5 kW. But if your monthly electricity usage is 2,000 kWh, then your monthly demand will be 10 kW.
This is why it’s important to understand the demand charge on your electricity bills. It can be the difference between a high bill and a low one.
How to Check if You Are Really Saving Money with Solar?
The key is to understand how your solar system is generating electricity and how that affects your electric bill.
Most solar systems are connected to the electric grid, which means that they still rely on the public utility for power when the weather is cloudy.
Your electric company will then send you a bill for the net amount of power that you used. In some cases, this can result in a monthly savings of 50% or more.
However, it’s important to note that electric rates vary depending on where you live. In some areas, solar customers are charged a higher rate for their electricity than non-solar customers.
This is because utilities must recover the costs of maintaining the grid and providing backup power when needed.
As a result, it’s important to compare electric rates in your area before switching to solar. With a little research, you can make sure that switching to solar is truly a money-saving decision.
Should You Install Any Equipment to Read the Electricity Bill?
You don’t need to install any equipment to read your electricity bill. Your solar panels will generate electricity, which will offset the amount of electricity you need to buy from the utility company.
The amount of money you save on your electricity bill when installing solar will depend on the size of your solar array, the amount of sunlight your area receives, and your electricity usage.
Although it is always good to make and advance research on the solar industry before installing a solar PV system.
How to Compare Electric Rates in your Area?
Comparing electric rates in your area is easy.
First of all, you will need to find your local utility company’s website. Every utility company has a website where you can find information about their rates.
Following, search for “electric rates”. Once you’re on the utility company’s website, use the search bar to find information about electric rates.
Then, look for a rate comparison chart. Most utility companies will have a rate comparison chart that shows the price per kilowatt hour (kWh) for solar and non-solar customers.
Last, don’t forget to compare the rates. Take a look at the price per kWh for solar and non-solar customers. If the price is higher for solar customers, then switching to solar may not be the best decision.
What Advantages Should Solar Customers Take?
You will be amazed at the advantages that solar customers have. It is important to learn, explore and find out how to get a profit out of them.
Solar rebates and incentives
Solar customers can also take advantage of solar rebates and incentives. These programs can help offset the cost of switching to a solar PV system, making it an even more attractive option.
Net metering credit
Net metering is a program that allows solar customers to sell surplus electricity back to the grid. This can help offset the cost of switching to solar and make it more affordable.
You may calculate the net metering credits by taking the total number of kilowatt-hours (kWh) generated by your solar system and subtracting the total kWh used.
Solar renewable energy credits (SRECs)
Solar customers may be eligible for solar renewable energy credits (SRECs). SRECs are credits that can be sold or traded to utility companies.
The excess energy is what has gone into the grid storage and is known as a credit on your billing cycle.
So you, do not only decrease the electricity costs when you install solar panels, but you can store excess energy generated from your solar system and receive a credit on your billing for the net amount of power that you used!
They are designed to encourage the development of solar energy production.
Solar customers may also be able to lease solar panels. Solar leasing is a type of financing that allows solar customers to lease solar panels from a third party. This can help offset the cost of switching to solar and make it more affordable.
Solar customers may also be able to take out loans to finance their solar panels. Solar loans are a type of financing that allows solar customers to borrow money to pay for solar panels.
This can help offset the cost of switching to solar and make it more affordable.
To conclude, you should read your electric bill monthly and you should make sure to compare rates regularly to ensure that you’re getting the best deal possible.
Don’t forget to take advantage of solar rebates and incentives and think about the size of your solar array and whether you want to go ahead with solar installation.