No matter how many times you remind everyone to turn off the lights, that electric bill just keeps creeping up. It’s frustrating, right? That’s exactly why so many homeowners are making the switch to solar panels—but how much can you actually save? Will your bill drop to zero, or will you still owe something each month? The truth is, it depends—on your location, energy use, and even your utility company’s policies. Let’s dive in and see what your average monthly electric bill with solar could look like in 2025!
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FAQsÂ
What is the Average Monthly Electric Bill in the US?
Electric bills aren’t getting any cheaper, and in 2025, most U.S. households are seeing an average monthly bill of around $161. With electricity rates hovering at 17.9 cents per kilowatt-hour (kWh) and the typical home using about 899 kWh per month, it’s no surprise that energy costs are a growing concern.Â
Of course, what you actually pay depends on a bunch of factors—where you live, how much energy you use, and even the time of year. Some people barely notice a difference month to month, while others get hit with unpredictable spikes. And with electricity rates continuing to rise, it’s easy to feel like your bill is out of your control.
That’s why more homeowners are looking at solar panels as a way to take charge of their energy costs. The real question is: how much can you actually save with solar panels?
What is Your Average Monthly Electric Bill with Solar Panels?
How much of your electric bill solar panels can wipe out isn’t just about the size of your system—it’s also about how much energy you actually use. If your household uses more power than your panels produce, you’ll still see a bill at the end of the month. But if your system generates more than you need, you might score credits through net metering, which could bring your bill close to zero.
For example, a small solar system (3-4 kW) might cover 10-30% of your energy needs, knocking $16 to $48 off your monthly bill—assuming your energy use is on the lower side. If you have high electricity demand (think electric heating, EV charging, or a big home), that same system might only cover 5-15% of your bill. A medium system (5-7 kW) can typically offset 30-60% of energy costs, translating to $48 to $96 in savings per month. A large system (8-10 kW) could cover 60-90% or more, saving you anywhere from $96 to $145 monthly.
At the end of the day, the more energy you use, the bigger the system you’ll need to make a dent in your bill. That’s why choosing the right system size for your home is key to getting the most out of your solar investment!
What Affects Your Electric Bill After Going Solar?
So, you’ve gone solar—awesome! But if you’re wondering why your electric bill isn’t reducing significantly, there are a few key factors at play. Where you live, how much power you use, and even your utility company’s policies all affect what you pay each month. Let’s break it down.
Where You Live Matters
Not all sunshine is created equal! If you live somewhere with tons of sun year-round, like Arizona or California, your panels will generate more power, meaning bigger savings. But if you’re in a place with seasonal changes or lots of cloudy days, your system might not produce enough to completely cover your energy use. Plus, every state has different solar incentives, which can either boost your savings or limit them.
Your Solar Setup
Your system size, panel efficiency, and whether you have battery storage all make a difference. If your system is too small, it won’t generate enough to cover all your needs. If it’s too big, you might be producing extra energy you can’t fully cash in on, depending on your state’s net metering rules. And batteries? They’re great for backup power and using stored energy at night, but they can also add to your upfront costs.
Your Energy Habits
Just because you have solar doesn’t mean you can go wild with energy use! If your panels generate less than you use, you’ll still get a bill for the extra power you’re pulling from the grid. But if you time things right—like running big appliances when the sun is shining—you can maximize your solar power and minimize what you owe.
Utility Rates & Net Metering
Here’s where things get tricky. Some utility companies love solar customers and let you sell excess energy back to the grid at full price. Others? Not so much. Some states have less generous net metering policies, meaning you might only get a fraction of what you paid per kWh when you send energy back. That affects how much you save in the long run.
Ultimately, solar is still one of the best ways to cut your electric bill, but how much you save depends on these factors. The good news? With the right setup and smart energy habits, you can keep your bill as low as possible!
Can Solar Totally Eliminate Your Electric Bill?
Wouldn’t it be amazing to never pay an electric bill again? While solar panels can seriously cut your costs, completely wiping out your bill isn’t always realistic—at least, not for most homeowners. If you’re connected to the grid, you’ll probably still get a monthly statement, even if it’s way lower than before. That’s because utility companies charge a mandatory connection fee to keep you plugged in when your solar panels aren’t producing enough. Plus, there are a few other costs, like maintenance to keep your system running smoothly and insurance adjustments if your provider requires extra coverage for solar panels.
Now, here’s the cool part—some homeowners can actually make money from solar. If your system produces more energy than you use, net metering lets you send that extra power back to the grid in exchange for credits, which can cancel out most (or all) of your bill.Â
But what if you go off-grid? If your system isn’t connected to a utility company at all, you won’t get a bill—ever. Sounds great, right? The catch is that you’ll need battery storage to power your home at night and during cloudy days, and possibly a backup generator just in case.
Whether you’re grid-tied or fully off-grid, solar is still one of the best ways to take control of your energy costs. Even if you don’t hit a $0 bill, the long-term savings and energy independence make it 100% worth it!
Mistakes That Can Lead to a Higher Electric Bill With Solar Panels
Switching to solar is a great way to cut your electricity costs, but common mistakes can actually leave you with a higher bill than expected. Here’s what to watch out for:
Incorrect System Sizing: If your system is too small, it won’t generate enough electricity to cover your needs, leaving you dependent on the grid. If it’s too big, you may overpay for solar panels without seeing a return on that extra investment. The key is sizing your system based on your actual energy use.
Ignoring Panel Maintenance:Â Dirty, dusty, or damaged panels can lose efficiency, meaning they generate less power than they should. Regular cleaning and occasional checkups keep your system working at peak performance.
Underestimating Future Energy Needs: Planning to buy an electric vehicle or add a home extension? If your system isn’t built with future energy needs in mind, you could end up using more electricity than your panels produce, leading to higher bills.
Not Understanding Net Metering Policies: Some utilities buy back excess solar power at a lower rate, while others have limitations on how much credit you can earn. If you don’t understand your local net metering rules, you might not get the savings you expect.
Improper Solar Panel Placement: If your panels aren’t positioned correctly, shading from trees, buildings, or even the wrong roof angle can reduce energy production. Proper placement ensures you capture as much sunlight as possible.
Avoiding these mistakes will help you get the most out of your solar system and keep your electric bill as low as possible. If you're considering solar or want to optimize your existing setup, now is the time to take action. Get in touch with a trusted solar provider today to maximize your savings and take control of your energy future!
FAQsÂ
How much will my electric bill be after installing solar panels?
Your electric bill will likely drop significantly, but the exact amount depends on your system size, energy use, and net metering policies. Some homeowners see reductions of 50-90%, while others may still owe a small monthly connection fee.
Will I still pay utility company fees even if I generate enough power?
Yes, most utility companies charge a mandatory connection fee to stay connected to the grid, even if you don’t use their electricity. This fee varies by location but usually ranges from $5 to $25 per month.
What happens on cloudy days or in winter?
Your solar panels will still generate power on cloudy days, just at a lower efficiency. During winter, shorter days may reduce output. A solar battery or net metering credits can help cover energy needs when production dips.
Can I go completely off-grid with solar panels?
Yes, but you’ll need a large solar system and battery storage to keep your home powered at night and during low-sunlight periods. Some homeowners also use a backup generator to ensure reliable electricity.
Do solar panels increase home value?
Yes! Studies show that homes with solar panels sell faster and for higher prices. Buyers appreciate lower energy bills, making solar a smart investment if you plan to sell your home in the future.