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  • Why Is My Utility Bill Still High with Solar? Understanding the Causes and Solutions

Why Is My Utility Bill Still High with Solar? Understanding the Causes and Solutions

 

Overview

This guide provides insight into why homeowners with solar panels might receive a higher-than-expected utility bill. Understanding the balance between system performance, utility rates, energy consumption, and the timing of energy use can help reduce overall costs.

Possible Reasons for Higher Utility Bills

There are four primary reasons why your utility bill may be higher than expected:

  1. Your system is underperforming or not producing enough energy.
  2. Your utility rates have increased.
  3. You are consuming more energy than expected.
  4. The timing of your energy use may not align with solar production hours.

Let’s break each of these down.

  1. Underperformance of Your Solar System

While rare, system underperformance could result in lower energy production than expected. The most common causes include:

  • System failure, such as an inverter going offline, resulting in no production.
  • Panel failure, which is extremely uncommon with quality panels (around 1 in 10,000).

To check for underperformance:

  • Use your system’s monitoring app to verify current production levels.
  • Contact Icon Power for further diagnostics and confirmation if needed.

If your system is producing as expected, proceed to the next potential reason.

  1. Increased Utility Rates

Utility companies frequently adjust their rates, often leading to higher electricity costs. This can include increases in:

  • The per-kilowatt-hour (kWh) rate.
  • Base fees, taxes, and surcharges.

Since these costs are beyond the control of your solar system, any grid consumption will be subject to these new rates. Reducing grid consumption is the best way to minimize this impact.

  1. Increased Energy Consumption

Another reason for higher bills could be increased energy consumption, especially from major appliances that draw large amounts of power, such as:

  • Air conditioners and heating systems.
  • Pool pumps.
  • Electric ovens, stovetops, dryers, and water heaters.
  • Electric vehicle chargers and space heaters.

If your AC system has not been serviced recently, it may be consuming more energy than necessary. Additionally, monitor your appliance usage and adjust habits as needed, particularly if you’re using these appliances during non-solar hours.

  1. Timing of Energy Use

Solar systems generate electricity during daylight hours (typically 8-12 hours per day), but homeowners use energy 24 hours a day. If you consume energy outside of solar production hours, you’re buying that energy from the utility, often at a higher rate than what the utility pays for your excess solar energy.

Here are some tips to optimize energy use:
  • Shift energy-intensive activities (e.g., laundry, pool pumps) to mid-day when solar generation is highest.
  • Pre-cool your home with a smart thermostat to reduce AC usage during peak times.
  • Charge electric vehicles during excess solar production or enroll in off-peak charging plans if available.

For those on time-of-use (TOU) plans, avoid using heavy appliances during on-peak hours when rates are highest.

Additional Tips for Reducing Energy Costs
  • Maximize daytime solar energy consumption to reduce reliance on the grid.
  • Schedule appliances with flexible usage times to align with solar and off-peak hours.
  • Consider adding a battery system to store excess solar energy for use during non-solar hours.

These strategies can help lower your utility bill by reducing grid consumption and optimizing your solar production.

Summary

If your utility bill is higher than expected, check for system underperformance, increased utility rates, higher energy consumption, and timing of energy use. Adjusting your energy habits and scheduling can significantly reduce your costs. A battery system may also provide additional flexibility in managing your solar energy.

For further assistance, please contact Icon Power support. We’re happy to help answer any questions regarding your solar system’s performance and energy management.

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Updated on February 7, 2025
Table of contents
  • Overview
    • Possible Reasons for Higher Utility Bills
      • Underperformance of Your Solar System
      • Increased Utility Rates
      • Increased Energy Consumption
      • Timing of Energy Use
        • Here are some tips to optimize energy use:
          • Additional Tips for Reducing Energy Costs
    • Summary

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