How Much Does Solar Save on Your Electric Bill Per Month?
The average homeowner saves $100–$200/month on electricity with solar. See exactly how much you could save based on your bill size and location.
Average Monthly Solar Savings
The average American homeowner saves $100–$200 per month on their electric bill after going solar. Over 25 years, that adds up to $30,000–$60,000 in savings. Your actual savings depend on your monthly bill, your location's sun hours, and your local electricity rate.
| Monthly Bill | Typical Annual Savings | 25-Year Savings | Payback Period |
|---|---|---|---|
| $75–$100 | $600–$900 | $18,000–$27,000 | 9–12 yrs |
| $100–$150 | $900–$1,400 | $27,000–$42,000 | 8–10 yrs |
| $150–$200 | $1,400–$1,900 | $42,000–$57,000 | 7–9 yrs |
| $200–$300 | $1,900–$2,800 | $57,000–$84,000 | 6–8 yrs |
| $300+ | $2,800+ | $84,000+ | 5–7 yrs |
What Determines Your Monthly Savings?
Three factors drive your monthly solar savings: how much electricity your system produces, how much of that production you use directly (vs. exporting to the grid), and what your utility charges per kWh.
- Local electricity rate: Higher rates = more savings per kWh. California ($0.28/kWh) saves 2x more per unit than states with $0.12/kWh rates.
- System size and production: A larger system produces more electricity and offsets more of your bill.
- Net metering policy: States with full retail-rate net metering (FL, NY, NJ) maximize savings. States with avoided-cost net metering (CA NEM 3.0) benefit more from battery storage.
- Your usage patterns: Using more electricity during daylight hours maximizes self-consumption and savings.
- Electricity rate inflation: Electricity prices have risen ~3% per year historically. Solar locks in your rate, so savings grow over time.
Frequently Asked Questions
Will solar eliminate my electric bill?
Solar can eliminate 70–100% of your electric bill, depending on system size and usage. Most homeowners still have a small monthly connection fee ($10–$20) from their utility even with solar.
How much does solar save per year on average?
The national average is $1,200–$1,800 per year in electricity savings. High-usage households in states with expensive electricity can save $3,000–$5,000 per year.
Does solar save money in cloudy states?
Yes. Even in cloudy states like Washington or Michigan, solar saves money because panels still produce electricity on overcast days (just less than in sunny states). High electricity rates in these states often compensate for reduced production.
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