Solar panel installation within the grid system has a lot of benefits. Residential solar acts as a source of clean energy and reduces your consumption of electricity from utility companies. West Coast Solar, Inc. offers the best solar installation products and services in San Jose, Brentwood, and Sacramento. Are you wondering what your electricity bill will look like after you install the panels? Here are some of the changes you might see in your electricity bill after solar installation:
Reduced Electricity Bill
The solar installation acts as an alternative source of energy, thus, minimizing the amount of energy you’re consuming from the utility company. Additionally, most utility companies use tiered pricing, whereby your rate per kWh goes up once your consumption exceeds a certain amount of electricity. Utilizing solar energy places you in the lower-tiered pricing, therefore reducing your electricity bill!
Negative Electricity Bill
If you are still connected to the power grid system, you will still pay the delivery fee to your utility company. However, if your solar system produces more electricity than you consume, the excess electricity is fed to the power grid. You will then receive an electricity bill with a negative balance which means you have been a net seller of electricity. The balance is pushed forward to offset any bill for future energy consumption from the power grid.
Lower Electricity Taxes
Your electricity bill is made up of three items: service fee, taxes, and utility. Taxes charged are usually calculated based on utility, meaning the more you consume, the more taxes you pay. Solar installation reduces and even eliminates your energy consumption from the power grid, thus lowering the amount of taxes you spend on your electricity bill. Some taxes will appear in your statement as a line item set apart, and some will be in the rates, so be sure to check your tax rate in your area to learn more.
Financial Incentive
Financial incentives are given to homeowners based on the amount of energy their solar system produces. This is usually done monthly and is included in your power bill. Additionally, net-metering allows you to sell excess energy from your grid-tied storage back into the grid system during high-demand times. You then can be paid based on the amount of energy you feed into the grid system and that is also included in your monthly bill.
Connecting your residential solar system to your grid system lowers your energy consumption from the power grid. Additionally, it allows you to trade excess electricity harnessed from your panels for utility credit to be used in times of low electricity production from your solar panels. West Coast Solar, Inc. is your best residential solar partner in San Jose, Brentwood, and Sacramento. Schedule a consultation with our team for expert information today!