Solar energy systems are an excellent alternative to relying on the local power grid. Producing energy this way not only lowers carbon emissions and the environmental impact of your energy production, but it also lowers your use of utility-provided electricity, thereby lowering your monthly electric bill. If you’ve just started your clean energy journey, you may have been asked about your current energy bill and wondered why it was relevant. Before you can begin the installation process, our solar experts need to examine your average consumption in order to design a system that actually meets your energy needs. We understand your curiosities and want to give you some insight on the significance of your electric bill.
While our team can easily analyze your consumption before installing solar power, you will certainly benefit from learning to break down your bill on your own. Once your solar installation is up and running, you will immediately see the impact on your electric bill. You’ll be able to review the energy that was supplemented by the utility company or in the best cases, you’ll be able to see the payment that the utility company owes you for supplying them with your excess energy (in areas that offer net metering and solar renewable energy credits).
Utility bills can vary by company, regional location, and of course, the utility at hand. Electric bills in particular have some common concepts and terms that every consumer should understand. Here, we’ll be taking a look at the areas of an electric bill that you’ll want to understand.
Account Information
Your account information generally consists of identifying information such as your account number and property address, in addition to billing details such as payment plans and recent payment history. This area is fairly straightforward as it’s the information that consumers pay the most attention to.
Energy Details
Your bill will include a type of usage report which reflects your recent energy consumption. This is the information that our team is concerned with as we design your solar energy system because this area breaks down the differences in your energy usage. The amount of energy used is measured in kilowatt-hours and can be shown in daily, monthly, or average usage. Many utility companies include a chart to help the consumer visualize the fluctuations in energy usage.
It’s important to recognize that your energy consumption may not add up to your actual billing amount. This is due to fixed fees such as service, transmission, and production charges. These fees don’t directly reflect your energy usage, resulting in a difference between energy costs and utility charges.
You can determine the cost of your energy by calculating the Total Price per kWh with this helpful formula:
(Total Cost of Bill - Fixed Fees) ÷ Total kWh Billed = Price per kWh
Finding out this cost will help you to better understand the savings you gain from generating your own electricity with solar power.
The accuracy of your energy usage report also depends on which type of meter reading the utility company has provided. Estimated readings, which are based on your past usage history, are used when your property’s meter is inaccessible; unfortunately, these readings can be inaccurate. However, actual readings are based on a meter’s actual recordings.
Learn More From YellowLite
At YellowLite, we prioritize customer education and empowerment. Switching to an alternative energy source like solar requires serious consideration. We share our industry knowledge so that our customers can make informed decisions about their energy solutions.
To learn more about installing a solar energy system, reach out to a YellowLite solar consultant!
Call us at 216-333-1364
Email us on https://www.yellowlite.com/contact-us/
