Why Is My Electric Bill So High If I Have Solar Panels?

You installed solar panels. Maybe you even added a battery. Your monitoring app shows you're producing plenty of energy—sometimes even more than you're using.

So why is your electric bill still $150, $200, or even $300 per month?

If you're asking yourself this question, you're not alone. This is one of the most common frustrations we hear from homeowners, and here's the truth: it's rarely because your solar system is broken.

The real culprit? A timing problem that almost no installer explains upfront.

Why 100% Production Doesn't Mean a $0 Bill

Here's what most people think solar means: "I produce 100% of my energy, so my bill should be $0."

That makes perfect sense, right? If your panels generate 1,000 kilowatt-hours in a month and your home uses 1,000 kilowatt-hours, the math should be simple. You produced what you consumed. Bill should be zero.

But here's the problem: Your utility doesn't care about monthly totals. They care about when you produce versus when you consume.

A Typical Day in Your Solar Home

11 AM - 3 PM (Peak Solar Production):

• You're at work

• Kids are at school

• House is barely using electricity (just the fridge and Wi-Fi router)

• Your panels are cranking out maximum power

• All that excess energy flows backward to the grid

6 PM - 10 PM (Peak Home Usage):

• You get home and turn on the AC

• You start cooking dinner

• Kids are charging devices

• You're doing laundry

• Maybe you plug in your EV

• Your solar panels are producing: ZERO watts

Where's all that evening power coming from? The grid. And you're paying full retail price for every single kilowatt-hour.

This is the Solar Paradox. You can produce 100% of your annual energy and still have a massive electric bill because you're producing it at the wrong time.

The Rule Change That Changed Everything

If you're seeing unexpectedly high bills, there's a good chance the rules changed after you installed your system. Here's what you need to know:

If You Installed Before April 15, 2023 (NEM 2.0)

You're on Net Energy Metering 2.0, which is the "good" system. Under NEM 2.0:

✅ You get credited at close to full retail rate for energy sent to the grid

✅ The grid acts like a "free battery"

✅ 10 kWh exported at noon = 10 kWh imported at 8 PM (basically washes out)

But even with NEM 2.0, you still pay:

• Non-bypassable charges: 2-3 cents per kWh for every unit pulled from the grid

• These fund public programs and grid maintenance

• Solar credits can't erase these charges

• Result: $20-$40/month minimum bill even with perfect production

If You Installed After April 15, 2023 (NEM 3.0 / Net Billing)

This is where things get rough. Under NEM 3.0 (especially in California):

❌ You no longer get credited at retail rates

❌ You get paid based on "avoided costs" (what the utility would've paid elsewhere)

❌ These rates are 75-90% lower than retail prices

Here's the math:

• You export 10 kWh during the day → Credited 8¢/kWh = 80 cents

• You import 10 kWh at 8 PM → Charged 40¢/kWh = $4.00

• Daily loss: $3.20

• Annual loss: $1,168

This is why homeowners who installed solar in 2023-2025 are seeing bills way higher than expected. The rules changed, and unless you have a battery to store daytime energy for nighttime use, you're stuck in this export-import loss cycle.

Hidden Fees You Can't Avoid

Even if you perfectly time your energy use, there's another layer most people don't know about: fixed infrastructure charges.

California's New Flat Fee (Starting 2026)

• Monthly charge: ~$24 for most customers

• Purpose: Covers poles, wires, transformers

• Can't be offset: Solar credits don't reduce this fee

Other States Have Similar Fees:

• Texas: TDU charges

• Florida: Base facility charges

• Pennsylvania: Customer charges

The name changes by state, but the concept is the same: certain fees that solar just can't eliminate.

What You Can Actually Do About It

Now that you know what's really going on, here are three solutions—ranked from free to premium.

Solution #1: Load Shifting (FREE)

Shift your heaviest energy loads to the middle of the day when your panels are producing the most.

Simple changes that make a big difference:

• Run dishwasher at 11 AM (not 9 PM)

• Do laundry between noon and 3 PM

• Charge your EV during the day (if you work from home)

• Pre-cool your home in early afternoon, then coast through evening

Potential savings: 20-30% reduction in bills—without spending a dime.

Solution #2: Add a Battery (GAME-CHANGER)

A battery lets you store cheap daytime solar energy and use it at night when the grid is expensive.

The Impact:

• Solar-only system: ~45% bill reduction

• Solar + battery system: ~73% bill reduction

That's the difference between owing $150/month and owing $40/month.

Bonus for California NEM 3.0 customers:During August and September, the grid gets so stressed that export rates spike to 15x higher than normal. With a battery and smart controls, you can export during these "Power Hours" and rack up massive credits—sometimes enough to wipe out bills for the rest of the year.

But you need a battery to capture this opportunity.

Solution #3: Get Your System Checked

Before spending money on a battery, make sure your system is actually working.

Quick system health check:

• Check your utility meter (on a sunny day)→ Should show negative sign or code "082" if exporting power

• Check your inverter→ Red blinking light = problem→ Green/blue solid light = normal operation

• Inspect your panels→ New tree growth causing shade?→ Thick layer of dust or pollen?

Why this matters:

• Shading just 1/36th of a panel can cut output by 75% (the "Christmas light effect")

• Dust and dirt can reduce production by 5-25%

→ Get a free system health check from IntegrateSun

You're Not Broken, The System Is

If you're frustrated with your solar bill, you have every right to be. You made a big investment expecting big savings, and it feels like you're not getting what you were promised.

But here's the truth: Your system is probably working exactly as designed.

The problem is:

• The rules changed (especially if you're on NEM 3.0)

• The timing is off (daytime production vs. nighttime usage)

• Most installers didn't explain this before you signed

The good news? Once you understand what's actually happening, you can take control:

1. Shift your usage to match solar production

2. Add a battery if it makes financial sense

3. Check your system health to ensure you're getting what you paid for

Solar is still one of the best investments you can make for your home. But like any investment, you need to understand how it works to get the full value out of it.

Take Action Today

Not sure where your money is going? We'll analyze your production, your usage, and your utility rates—then show you exactly where the gaps are.

→ Book Your Free Solar Bill Analysis