Enphase Energy Inc.
12/18/2024 | Press release | Distributed by Public on 12/18/2024 02:49
How to read solar electric bills at home
After going solar: Understanding your electricity bill
After you've installed a home solar energy system, your electric bill will look much different than before, with specific details that depend on where you live. Most importantly, your solar electric bills display the amount of electricity exported by your PV energy system alongside the quantity of grid-supplied power your home imports. For your bill total, you only pay the difference.
How net metering and solar energy billing policies affect electric bills
Your utility provider determines the value of the electricity your solar energy system produces and shares with the grid. In over 30 states, utilities are required to offer net metering, which compensates solar producers for shared electricity at retail or near-retail rates.
At the end of your annual billing cycle, you'll receive a "true-up statement " for any excess net metering credits your property has accrued over the year. True-up payments are usually made on the anniversary of your installation date, or the month it was installed, though this varies by region.
While net energy metering (NEM) policies have evolved across the U.S., several states have adopted net billing tariffs (NBTs). Nicknamed NEM 3.0 in California, the value of solar electricity exported to the grid under a net billing policy is much lower than when compared to traditional net metering by as much as 75% less. Instead of compensating solar producers for electricity exports at retail rates, net billing export values are based on utility costs avoided.
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Example: Electricity bill after solar for a California resident who installed a system in 2025 After the installation, the excess power your system sends to the grid will earn net billing credits. These will offset energy costs incurred when your panels aren't actively producing electricity, like overnight. In this example, if your home consumes 850 kWh and your solar energy system produces 900 kWh over the course of one month, you may be credited for the excess 50 kWh of electricity at your utility's net billing rate. Some homeowners, like Southern California Edison customers, can also elect for an Annual Billing Option (ABO), in which net energy charges are paid annually rather than monthly. |
As a result, battery storage has become an increasingly viable way to maximize your savings on electricity bills after going solar. If you live in an area with NBTs, a battery is vital to store the excess electricity your system produces throughout the day so that you can avoid costly grid energy later during peak billing hours.