What Is the Average Monthly Electric Bill With Solar Panels?

By homesolarsessions | Jul 27, 2023

With utility rates rising and household electricity usage increasing, many homeowners are looking for a way to lower their electricity bills (without turning their house into a sweat lodge in the summer). Home solar is touted as a way to reduce your electricity costs and carbon footprint, but how exactly do solar panels reduce electricity bills? In this article, we’ll explore what an electric bill looks like for a home with solar panels and how much you can expect to save per month.

Let’s start with a baseline based on national averages. What is the average monthly electric bill with solar panels? The average US electricity bill in the first half of 2023 was $146.92, based on monthly consumption of 881 kWh and the average utility rate of 16.7 cents per kWh per the EIA. A 7.5 kWh solar system with 5 peak hours of sun per day could more than offset the average homeowner’s electricity charges and save the full $146.92 in electricity charges.

Of course, every home in the US has a different mix of sunshine, electricity consumption, utility rates, and net metering policies. But in general, a properly sized solar system with 1:1 net metering can fully offset your monthly electricity bills (aside from certain fixed fees).

The map below shows the average electricity bill for each state in the US in 2023. Click or tap your state to get a better sense of how much you could save per month.