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Can Solar Panels Eliminate Electric Bills?

Can Solar Panels Eliminate Electric Bills

Before installing a solar system it’s important to go in with realistic expectations of what they system is capable of.

Solar panels will eliminate electrical bills completely. It will however reduce your bill by 90% of average.

One of the biggest misconceptions about solar panels on your home is you stop receiving electricity bills. Unfortunately, this is not true unless you go totally “off-grid” which means you have a large battery backup system.

For 99% of solar users you will still want to be connected to the grid for backup, and to feed your excess power back into the grid and get paid by Energy Australia.

As long as you’re connected to the regular power grid, you will still receive electricity bills, but with a solar enabled home, those bills will be altered depending on how much solar power you’re generating. There is a policy known as net metering.

So will I still have electrical bills?

You will but only a fraction of what they used to be. A lot of people think they will completely disconnect from the power grid and have free power for life. Unfortunately the nature of solar power means it is limited to producing power through the day, and most of us use electricity at night. You will not be net zero every month so you will still receive a small bill.

Can solar panels provide me all my electricity needs?

Yes they can, but the problem is when you are using the power and when the system is producing it.

In short, a solar system produces most of its power through the day, when most people are out and about. When the sun goes down, people are at home and we use most of our electricity to heat ovens, televisions, toasters in the morning etc.

We get around this by either having a battery backup system, or feed excess power into the grid and get credits, then draw it out at close to zero cost at night.

In 2020 batteries are still too expensive to make it worthwhile so using the grid as your backup buffer makes more sense. You will never make out completely even or net zero, but you will come close.

Do Solar Panels really Save You Money?

Yes, they do. Once they pay for themselves over a 4 year period you are saving 80-90% off your power bills. Solar panels usage can help you save a big chunk of money when considered in the long-term. With the national electricity rate increase of 2.2% annually, solar is destined to save you money over the long haul.

What is Net Metering?

This service essentially allows users that generate a quantity or all of their electricity to make use of anytime. Therefore, for consumers that do not have a means of storage for the power generated, this power is transmitted to the grid from where it is distributed for other users. The power generated is recorded and can then be delivered back to the home at a later month or at night when the sun is no longer up to power your solar panels.

The energy your solar system sent to the grid during the day then offsets the electricity you receive at night or at a later time, as long as you draw back the same or less amount of electricity. If you were observed to consume more than you gave, your electric bill would be charged for the extra amount of power you used.

On the other hand, there are homes that will have a means of storage for the solar power for night time and will also supply the grid with power when their storage is full. This also serves as a means for various solar-enabled homes to make extra cash by providing generating energy for the grid.


If you have installed a solar system in your home, you will still receive electricity bills periodically as prior to their installation. The difference now would be the charges you will be required to pay which will be calculated based on your use of extra grid power.

It is also totally possible that the electricity bill will not ask you to pay anything if you’re supplying more than you receive. The only way to stop receiving electricity bills is if you cut all connections of your home to the grid and become full power sustainably.