Electricity Bill Offset Calculator
See exactly how much your monthly electricity bill drops after going solar, with net metering credit included.
How Solar Offsets Your Electricity Bill
Self-Consumption vs Export
When your solar panels produce electricity during the day, your home first uses that power directly — this is self-consumption. If production exceeds your real-time usage, the surplus is exported to the grid. At night or during low-production periods, you draw from the grid as normal.
Net Metering
With net metering, your utility credits you for exported electricity — typically at the full retail rate. These credits offset what you owe for grid power consumed at other times. Without net metering, exported power is either credited at a lower wholesale/avoided-cost rate or wasted entirely. Net metering policies vary by utility and state.
Monthly vs Annual Billing
Some utilities "true up" net metering credits annually rather than monthly. In this case, summer surplus can offset winter deficits, potentially achieving a higher overall offset percentage than monthly calculations suggest.
Rate Structures
Time-of-use (TOU) rates can significantly affect solar value — if your utility charges more during peak afternoon hours and your system produces most during that time, your effective offset can be higher than simple calculations show. Consider a TOU rate analysis if your utility offers it.