Experience the Thrill of Solar Savings on Your Electricity Bills

The moment you switch to solar energy, you will promptly experience a noticeable dip in your monthly electricity bills. The promise of these substantial savings is a potent motivator prompting individuals to switch to solar energy.

The size of your electricity bill post-solar switch depends on several factors, namely:

  • The power generation capacity of your solar panel system,
  • Your local utility rates, and
  • Your household's energy consumption.

By establishing an appropriate solar panel system and judiciously managing your energy usage, you can strike a balance allowing you to generate sufficient solar power for all your needs. Discover the optimal solar panel cost for your system.

This strategy could save you thousands of dollars on your electricity bill over the years.

Unpacking the Role of Your Solar Panel System Size

The size of your solar panel system directly influences your monthly electricity bill.

Standard residential solar panel systems range from 5 to 10 kilowatts (kW), and the size of your solar panel system, amongst other factors, determines the kilowatt-hours (kWh) generated. To paint a clearer picture, a 5 kW system can churn out around 8,000 kWh annually, while a 7 kW system may generate about 10,000 kWh every year. For a more visual understanding, check out this informative video on kilowatt-hours.

Other factors, such as hours of sunlight, the angle and direction of your panels, and even their cleanliness, can affect these figures. For instance, these numbers might be higher in one state and lower in another.

Arizona and California stand out as premier states to go solar, thanks to their conducive environmental conditions promoting higher energy production rates. Moreover, California's wide array of state and local incentives further offset costs for your solar panel system.

Understanding Your Household Energy Consumption

Your household's energy consumption plays a crucial role in shaping your electricity bill after switching to solar. The average electricity consumption for a U.S. household is around 897 kWh.

Living solo and further cutting down on consumption can significantly reduce this figure. You can utilize online calculators to determine your monthly energy use.

Knowing this figure before installing your solar panel system aids in accurately meeting your energy production goals. While some aim to cover only a fraction of their energy use with solar, others aspire to go fully solar.

Both approaches have their merits and demerits, but if you aim to shrink your electricity bill to the bare minimum, ensure your system can generate 100% of your energy needs.

The Impact of Local Utility Rates

The cost of electricity fundamentally depends on your local utility's rates. As of February 2018, the national average cost of electricity stood at 12.62 cents per kWh. It's projected to escalate by roughly 3% yearly for the next few years, with no indications of a decrease in the foreseeable future.

By multiplying the average energy consumption with the average cost per kWh, we arrive at an average monthly electricity bill of $113.20. Most utility companies impose a minimum charge of around $10 for delivery, distinct from energy use charges. If your solar panel system can generate sufficient energy for all your needs, you could slice that ~$120 bill down to a modest $10.

In Conclusion

Several variables influence your electricity bill after switching to solar, and these can fluctuate based on location. The size of your solar panel system and your household's energy consumption significantly influence your monthly charges.

Ultimately, your electricity bill will reflect your energy production and consumption objectives. However, it is indeed possible to minimize your electricity bill to its base payment, ranging from $5 to $20.


By going solar, you could save over $100 a month on your electricity bill, a figure likely to escalate as electricity costs rise. Over time


, the total savings from a solar panel system on your monthly electricity bill could total tens of thousands of dollars. Don't delay - make the switch to solar power today!

Back to blog