How Do Solar Panels Work With Your Electric Bill

How do solar panels work with your electric bill

Electricity expenses are the common concern for most house owners in the USA. That’s the reason people are now using solar power systems to minimize their electric bills. Once you install solar panels you will see a huge difference in your electric bill. Solar panels absorb sunlight and then convert it into heat or thermal energy. 

Usually, people use their roofs to install solar panels because the place is perfect for receiving direct sunlight. You can reduce your electric bill by using solar power instead of the main power grid. Although installing solar systems is expensive, it’s a lifetime investment. In this guide, we will explain how solar panels work with your electric bill.

How Do Solar Panels Work On A House?

Solar panels usually work in daylight, they can’t work without sun. When you install solar panels they absorb photovoltaic (PV) cells from sunlight and produce electric energy. That’s why you have to put the panels on the open place like roofs or outdoors. If you have south face roofs, place your panels there to get direct sunlight. First, solar panels produce Direct Current electricity (DC), then an inverter transforms this DC electricity into Alternative Current (AC) electricity. 

After this transformation, it is usable for your home. You can use this electricity from the power equipment. Also, you can store it in a battery for use later, especially at night or on rainy days. Once you install solar panels, you don’t have to use electricity from the main power grid until the stored electricity runs out. Besides, you can send back extra electricity to the main power grid and make some money. 

However, how much electricity your solar panels can produce will depend on some key factors. The main factor is your location and the peak hour of the sun. Usually, cool and sunny days are perfect for solar panels to produce more electricity. If you live in a state where maximum days are cloudy or rainy then your solar panels can’t generate enough electricity that you need. Also, it’s very important to install perfect sized solar panels according to your house. 

How Solar Panels Affect Your Electric Bill?

Electricity bills increase almost every other year in the United States. People who depend on only the main grid deal with expenses of electric bills. According to the US Bureau of Labor Statistics, the national average electricity rate was 17 cents kWh in June 2023. This price increased by 2% every month compared with the past year, 2022. 

Solar panels can save your expenses by generating its own electricity. Once you install solar panels you don’t need to use power from the main grid. Also, when solar panels generate more electricity than you use, they send the rest of the electricity to the power grid. So, you can make some extra money by selling this electric energy.

How Solar Panels Affect Your Electric Bill

In the summer, during June and July, the Sun stays at the highest time than in other seasons. This time, solar panels get the maximum time to produce electricity than during the cloudy season. Usually, solar panels hardly receive sunlight during rain or cloud. Also, heavy snowfall equally impacts solar power generation. Then you will need to install extra panels to cover your electricity usage.

However, if your state electricity provider offers a net metering system, then you can easily calculate how much electricity you can save on daily usage. Only a few states offer net metering, like Arizona and California. 

When you use a perfect-sized solar system in your house, the main source of power will be solar-generated power. You can run your appliances and charge your devices using this power. At the end of the month, you will notice a big difference in your electric bill. Also, you can make a chart to estimate before and after electric bills. 

Why Are My Solar Panels Not Saving Me Money?

Sometimes, solar panels can’t lower your electricity bills due to some factors. One of the biggest factors is your electricity usage. If you use more electricity than your solar panel generates, then you have to use the main grid line. So, you can’t reduce your electric bill because your panels are not enough. Also, the number of electronic devices you use in your home impacts your electric costs. If you use devices with high voltage like AC, heater, or transformers then your required power energy will be high.

So, you need to install a perfect number of solar panels according to your electricity requirements. Also, it wouldn’t be worth anything if you didn’t put the perfect-sized solar panels for your house. Usually, solar panels have a specific capacity to produce electricity according to size. So, it’s important to check the capacity of different-sized solar devices, like how much area they can cover.

Also, if the solar panel can’t produce electricity due to a lack of sunlight, that causes a higher electric bill even if you have a solar panel. This happens especially in cloudy seasons when the Sun arrives for less time or sometimes doesn’t appear for a few days. Also, the solar system only works during sunlight; it usually can’t charge itself at night. Finally, the state environment and utility bill rate may be the reason for the failure to save money even after installing solar panels.

Conclusion

Electricity is the most essential and basic need in our daily life. Sometimes it’s pretty expensive according to our daily usage. Installing solar panels can reduce this expense through net metering or net billing. Sometimes, the solar system can waive the entire electric bill. Solar panels typically generate your own electricity so that you don’t need to pull electricity from the main grid.

Also, if your solar system produces more electricity than your usage, you can send it back to the main grid. That’s how you can save money or even make money by selling excessive electricity. Purchasing a solar panel is a one-time investment, and it will benefit you in the long run.

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