Can Solar Cover My Whole Electric Bill?
Solar may cover most or all of your electric bill at certain times of year. Solar panels rely on bright and long sunlight hours, which vary throughout the year. During the most productive months, your solar installation on Long Island could leave you with nothing but a hookup charge on your bill.
Although there are months with lower solar production, the availability of Net Metering helps to balance your savings.
Learn all you need to know about your electric bill with home solar.
How Solar Affects Your Electric Bill
For PSEG Long Island customers, solar reduces and sometimes eliminates a monthly electric bill. This is possible through Net Metering. This system allows solar panels and the grid to work together, maximizing savings from the surplus electricity produced.
Here’s what it would look like after you install solar panels:
- Your Home Remains Connected to the Grid: Even with solar panels, your home will stay connected to PSEG. This connection ensures 24/7 electricity even when the sun is down. Your home will get a new meter that measures the electricity you consume and export.
- Net Metering is Key to Solar Savings: During high production months (typically from April through to September), you might produce more energy than your home needs. The surplus goes back to the grid, and Net Metering kicks in.
- Billing and Credits: Each monthly bill is based on net consumption, which is the difference between the electricity you give to and take from the grid. Any surplus is credited to your account and is automatically applied to reduce future bills. This means that good months with high production help to cover months with low solar production.
- Annual Reconciliation: PSEG’s program for Net Metering rolls over annually. If you have credits at the end of a billing year, PSEG will pay you for the balance, below the retail rate, known as the Avoided Cost of Power
- Service Charges: You will pay only a small service charge for months when you send out more electricity than you consume. This is known as a daily service charge or hookup charge.
How Much Will I Save with Solar?
Solar can significantly reduce or even eliminate your monthly bill, but the exact savings depend on several factors, including:
- The size of your home and your average energy usage.
- The size of the solar panel system you install.
- Environmental conditions like elevation, roof orientation to the sun, and surrounding shade structures.
- Whether you install a battery energy storage system to maximize savings based on time-of-day billing.
Calculating potential savings is complex, which is why it’s crucial to start with a free consultation with a cost/benefit analysis. Power Solutions is your Long Island Solar Installer. You can contact us for a free ballpark solar estimate today, and we will begin the process to show you what you could save with solar.
Frequently Asked Questions
Is Solar Really Worth It?
Solar is worth it because it reduces or eliminates your electricity bill, depending on the time of year and size of your solar system. Even a modest 6kW solar panel installation could generate significant monthly savings.
At What Point Do Solar Panels Pay for Themselves?
Savings can pay for your solar panels, usually within 8 to 10 years. This is called the “payback” period. The specific time depends on your average bill and the size of your solar system, as well as other factors like current electricity rates and your consumption patterns. Power Solutions will estimate the payback period based on your customized solar installation and energy usage patterns.
Get a Free Solar Estimate and Energy Savings Assessment
Time is running out to claim your 30% Federal Solar Tax Credit, a dollar-for-dollar credit based on the cost of your solar installation. Your solar installation must be complete by December 31st, 2025, to claim this credit. It can greatly improve savings and reduce the solar payback period. We offer a streamlined solar installation process to eliminate setbacks and ensure you are ready to take advantage of all available Federal and State benefits.
Power Solutions is the best team for solar panel installation on Long Island. A free solar estimate and energy savings assessment will help you determine if solar is right for you. Request your ballpark solar estimate today and let us show you what energy independence would mean for your family.
