How solar panels work with your electric bill

If your electric bill keeps climbing, it's fair to wonder what it would look like with solar panels on your roof. Here is the straight answer: for many homes, solar panels can cut the bill a lot, but likely still have something to pay.

You can estimate your electric bill after going solar, but you can't predict it exactly, because your usage and the weather will keep changing from month to month. Here’s what moves the number and how to find yours.

Why do you still get an electric bill with solar panels?

You still get a bill because your home stays connected to the grid, and the grid charges for that connection.

Your panels make power while the sun is out. Your home also uses power in the evening and overnight, which it pulls from the grid like it did before solar. You’ll likely still play for some combination of the following.

• Grid electricity. Power you use when your panels aren't covering it, like at night or on cloudy days.
• A fixed monthly charge. Many utilities bill every customer a flat fee to stay connected. Some programs don't let solar credits cover it.
• Higher evening rates. Some utilities charge more during peak hours, which often fall after sunset.

If your panels make more than you use, your utility may credit you for the extra. Some credit it at or close to the rate you pay (often called net metering). Others credit it at a lower rate (often called net billing). The rules differ by utility and can change, so ask yours.

Read more: Why you still have an electric bill with solar panels.

Credit: Florida Power & Light

What is the average electric bill with solar panels?

There is no reliable national average electric bill with solar panels, because the bill depends on things that differ from house to house. A single number would hide more than it shows.

Four things move it most: how much you use (add an electric car or heat pump; add electricity demand), how much your panels produce (a cloudy month could mean higher bills), how your utility credits extra power, and your fixed charges.

Here is a hypothetical example. A home uses 900 kilowatt-hours (kWh) in July, and its panels make 900 kWh (a kilowatt-hour is the unit of electricity your utility bills you for). The electricity charge could net to about zero, but the fixed charge still arrives. In January, the same home uses 900 kWh and makes 400, so it pays for the other 500.

Across the states below, estimated average monthly savings range from $72 in Michigan to $289 in Connecticut and Massachusetts. Local electricity rates are likely one reason for the spread. 

Average savings estimates are based on real Palmetto installations purchased with cash and loans in the second half of 2025, but do not necessarily reflect the value you would see. Reach out for a personalized savings estimate. Visit individual state pages for methodology and assumptions.

Read more: The mechanics of how solar panels can reduce your electric bill

How does a solar lease change your utility bill?

With a solar lease, you get two bills: one from your utility and a monthly payment for the system. You come out ahead when the utility bill drops by more than the lease payment adds. 

The utility part of your total moves with your usage and the seasons, so it’s smart to look at your costs over the full year. Solar lease savings are typically highest in the summer, so if you just look at your December bills, you’re getting an incomplete picture.

Palmetto's lease offers zero money down, predictable monthly payments, a 25-year contract, no processing fees, and maintenance included. Palmetto Energy Plan, when you deal directly with Palmetto, is designed to deliver savings in year one. See how solar lease savings work.

At the end of the lease, you can walk away, extend the lease at a reduced rate, buy out your system, or start a new lease with a new system.

If you interested in learning more about going solar (whether via purchase or lease) learn more about Palmetto's solar offerings or get a free savings estimate for your home and compare.

Frequently asked questions about solar and your bill

What happens if my solar panels make more electricity than I use?

It’s common to receive bill credits from your utility for any electricity you send back to the grid. In some programs, credits carry forward month to month, so a strong spring and summer can offset a weaker winter. In others, credits expire or are worth less than the power you buy. Ask your utility before you sign.

Should I buy a bigger system to push my bill to zero?

Usually not. Larger systems cost more, and where extra power earns a reduced credit, the added panels may not pay off. Solar panel systems are sized to your electricity usage and often limited by your utility’s policies. Our explainer on oversized solar systems covers when it makes sense.

How long do solar panels take to pay for themselves?

It depends on system cost, your electricity rates, and how much of your usage the panels cover. We don't have one national number, and a single figure would oversimplify. Read more about solar payback periods to learn how it could work out for your home.

Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.