Skip to content

What is an Average Monthly Electric Bill With Solar Panels?

4 minutes
A single family home with a lush green yard and solar panels visible on the roof.

Installing solar panels on your home is becoming an increasingly popular way to reduce energy costs and lessen your impact on the environment. When you think about solar panels, the first thing that comes to mind is likely saving money on your electric bill. But how much can you really expect to save? And what goes into an average monthly electric bill? Many people are curious about the average monthly electric bill with solar panels, and what factors affect this number. Read on to learn more about the cost of solar power and what kind of savings you can expect.

A Month with Solar

When it comes to solar panels, one of the most common questions homeowners have is how it will impact their monthly electric bill. Some people assume they will no longer have an electric bill at all, but that’s not always the case. To understand what is an average monthly electric bill with solar panels, we need to take a look at a few factors. The first of which is how much electricity your home currently uses. The second is the size and type of solar panel system you install. And finally, we need to understand net metering.

According to inspire clean energy, the average U.S. household consumes 901 kWh of electricity per month. That’s about 30 kWh per day at a cost of around $0.12-$0.20 per kWh on traditional energy, although this varies per state. So, if your home currently uses 901 kWh of electricity and you install a 5kW solar panel system, your system will offset about 36% of your monthly usage. Keep in mind, this is just an example. The amount of electricity you use and the size of your solar panel system will greatly impact your monthly savings. But, according to Energy Sage, the average U.S. homeowner can save approximately $84 per month per year, by going solar.

What’s even better is that these savings are only expected to increase over time as electric rates continue to rise. Global electricity usage rose 6% in 2021. This means that your average monthly electric bill with solar panels is only going to get more affordable. Now that we know how much solar can save you each month, let’s take a look at what goes into an average monthly electric bill.

What’s on Your Electric Bill?

If you live in the United States, there are four main types of charges you’ll see on your monthly electric bill: the cost of the electricity itself, a delivery charge, taxes, and miscellaneous fees. The cost of electricity is pretty self-explanatory. This is the charge for the actual electricity you use each month. The delivery charge pays for the poles, wires, and other equipment that delivers electricity to your home. And the taxes are, well, taxes. They can be state, local, or even federal taxes. As for miscellaneous fees, these are typically charges for things like environmental programs or meter reading services.

Compared to a traditional electric bill, an average monthly electric bill with solar panels will likely be lower. That’s because, as we mentioned before, you’ll be offsetting a portion of your electricity usage with solar power. So, while the cost of electricity may remain the same, the delivery and miscellaneous charges are likely to go down. And, of course, you’ll still receive the tax benefits that come with solar power. While the cost of solar in states varies, the average U.S. homeowner can expect to see a return on investment in as little as three to five years.

How Solar Panels Impact Your Electric Bill

The most obvious way solar panels will impact your electric bill is by offsetting the cost of the electricity itself, saving some U.S. homeowners an average of about $1,500 per year on their average electric bill with solar panels. But solar panels can also impact the other charges on your bill. For example, many utility companies offer net metering programs. Net metering is when your utility company credits you for the excess electricity your solar panels generate. So, if your system produces more electricity than you use in a month, you can carry that credit over to future months, offsetting the delivery charge.

Solar panels can also help you save on taxes. In the United States, there’s a federal solar tax credit that allows you to deduct 30% of the cost of solar on your taxes, allowing you to recoup some of the upfront costs of going solar. There are also several state and local solar incentives that can help offset the cost of solar, including solar rebates, tax credits, and property tax exemptions. Mixed with federal benefits and a monthly deduction in your electric bill your average monthly electric bill with solar panels compared to traditional electricity can be cut in half!

To find out how to save more on your energy bills, check out We’ll help you compare energy plans, including renewable energy plans, and find the best option for your home. You can compare your current energy plans to renewable energy plans  so you can easily see how much you could save each month. Solar panels are a great way to save money on your electric bill, but it’s important to do your research before making the switch. With a little help, you can be on your way to saving big each month. If you are looking for a renewable plan for your home, you can visit for an energy quote to see how solar can save you money.