Your Utility Bill After Going Solar

After Forme Solar installs your solar system, you will still be connected to the grid and have an account with your electric utility provider. Your rate plan may change post-installation as required by your utility provider. 

Solar can greatly reduce your electric bill, but you will often still have a residual bill. The size of your utility bill depends on many factors including local utility rates, the size of your system relative to your energy needs and what time of day you use energy. If you are on a Time-of-Use rate plan, you can often minimize utility rate charges by using less energy during peak hours. If you have a battery backup, setting it on a time-based mode to maximize for Time-of-Use can help reduce your use of expensive utility electricity without affecting your lifestyle.

The cost of energy varies widely by state and rate plan, which is important when considering solar panels and the value of solar energy. Energy rate plan structures, the time of day when energy is consumed from the grid vs. solar and the plan’s net metering rate all impact how quickly you may be able to recoup your initial investment by producing clean, renewable energy.

Previous Utility Billing Plan: Type of Utility Electricity Rate Plans

The following examples are some of the most common rate plan structures throughout our service territories and are intended to serve as a general guide – please check with your utility for details:

• Fixed-Rate Plan
  Pay the same fixed rate per unit of energy, no matter how much energy is consumed or at what time of day.
• Tiered-Rate Plan
  Your energy rate increases in set tiers as you use more energy. Using less energy from the grid by installing solar may significantly reduce your costs by keeping you in lower, less expensive tiers.
• Time-of-Use (TOU) Plan
  Energy rates vary based on the time of day, day of the week and/or the season that energy is being used (or any combination of these factors). You can save money by limiting your energy consumption from the grid to times that are outside of peak pricing hours. 
  When going solar, you will be switched to a TOU plan if you aren't on one already. 

New Utility Billing Plan: Net Metering

Net Energy Metering (NEM) is a billing program most utilities that allows the owner of a Solar Photovoltaic (PV) System to send extra energy generated by your home’s solar panels back to the grid for a credit. This credit is applied to your future electricity bills. With NEM billing, you only pay your utility for this “net” energy usage. During the day, your solar panels may generate more energy than you can immediately consume at that time. Even if you’re not home and not using the electricity that your solar panel produces, you do not need to worry about it going into waste. Net metering sells the electricity you are not using into the grid and enables you to generate electricity efficiently. With NEM, you’ll earn credits for this excess energy. When your home energy consumption is greater than your solar system’s output, your utility will apply these credits towards powering your home with energy from the grid.

Please keep in mind that Net Energy Metering laws vary widely from state-to-state.

Net metering can lessen the amount of money a consumer can spend every year on their electricity bill. They can even make money if they can generate more energy than they consume it. How? It’s just that simple; the utility company pays them for that excess energy at a retail rate.

Reduced Electricity Costs

When you find yourself spending more than you should on your electricity bill, net metering will help you lessen the expenses you spend annually. As explained above, you can export the energy that you did not use to the power grid, enabling you to earn bill credits. This means that you can make a profit if you produce more energy than you consume because the utility distributor will credit you for that excess energy.

Relieve the Load of the Grid

As a homeowner or a business owner, it will be excellent to pressure off the grid by generating sustainable energy, especially during the times of peak power consumption. Net-metering is a great way to rely on renewable energy and promote its advantages that have not been utilized fully. If you want to be responsible for an active role in energy production, then this program is best for you.

Environmentally-Friendly Solution

The world is always at risk of possibly harmful elements that could create harm to the environment. Using renewable energy enables you to fight this, but net-metering is a great example of pushing forward sustainability. Not only will you benefit from it, but you are also helping the environment because you will reduce your carbon footprint.