Do you still have an Electric Bill with Solar Panels?

Published: June 13, 2025

Many of our customers ask, “Do you Still have an Electric Bill with Solar Panels?”. Switching to solar panels is a popular choice for people in Arizona. This is due to the sunny weather, rising energy costs, and a strong desire for cleaner energy. But one question often arises for those new to solar energy systems: do you still have an electric bill with solar panels? The answer isn’t as straightforward as you might think.

This guide looks closely at how solar panels affect your electric bill. It explores what factors influence your savings. It shows how utility companies work with solar energy. Two examples are SRP (Salt River Project) and APS (Arizona Public Service). Read about your electric bill and solar energy with Solar Topps. 

The Arizona Solar Advantage: What is the Average Electric Bill in Arizona?

Arizona offers one of the best climates for solar energy, with abundant sunlight for up to 300 days a year. But despite having solar panels, most homeowners still receive an electricity bill. Why? Solar doesn’t necessarily eliminate your electric bill altogether. Instead, it reduces it substantially, and in many cases, it can even create a negative balance.

Why You Still Have an Electric Bill in Arizona

Here’s the breakdown of why solar panel owners still receive an electric bill:

1. Grid Connection

Even with solar panels, most homes remain connected to the utility grid. At night or on cloudy days when your panels aren’t generating enough power, your home relies on electricity from the grid. Your utility company charges you for this usage.

2. Utility Fees

Utility companies typically charge standard connection or delivery fees, regardless of your solar energy production. These fees help maintain the infrastructure that keeps your home connected to the grid.

3. Energy Production vs. Consumption

If your solar system doesn’t produce enough electricity to cover your energy consumption, you’ll need to buy additional power from the grid, adding to your bill.

Solar Panels Can Lead to Lower or Even Negative Bills

With the right setup and approach, your solar panels can significantly reduce or even eliminate your electric cost.

Net Metering Policies in Arizona

Net metering allows homeowners to receive credit for surplus energy produced by their solar panels. Excess energy generated during sunny hours is sent to the grid, and your account is credited. When your panels aren’t producing enough power (e.g., at nighttime), you can use these credits to offset your energy usage from the grid.

Utility companies in Arizona like SRP and APS offer net billing programs, which are slightly different from traditional net metering:

• SRP Solar Customers

SRP provides customers financial credits for excess solar power sent back to the grid. While the rate may vary, savvy homeowners can strategically manage their energy use to minimize their overall bill.

• APS Solar Customers

APS offers similar credits through its Resource Comparison Proxy (RCP) plan, which factors in the average cost of generating solar power. Many residents find themselves with low or negative electricity bills as a result.

Scenarios Where Your Electric Bill Is Negative

During sun-rich months, your solar system might generate more energy than your household consumes. If this happens, you’ll receive utility bill credits that can carry over into less sunny months, like winter. Some Arizona residents with optimized systems and energy-efficient homes even report electricity account balances that are negative—with the utility owing them!

How Much Can Solar Save You? Solar Panels and Electricity Bills

The exact savings solar provides depends on multiple factors, including:

• Size of Your Solar System

A well-designed solar system can offset close to 100% of your electricity usage when tailored to match your electric consumption. For example, mounting a larger system than needed can help cover future energy needs (like adding an electric vehicle).

• Energy Consumption Habits

Adjusting your habits to prioritize energy use during peak sunlight hours (when solar production is at its highest) maximizes cost savings.

• Battery Storage Systems

Adding a solar battery to your system lets you store energy for use during nighttime hours or overcast days. While batteries add to upfront costs, they offer added independence from grid reliance.

Real Savings Example

A resident in Mesa, AZ installed a 7 kWh solar panel system to cover their 6.5 kWh energy needs. After a couple of months, their average electric bill dropped from $300 to only $30 (largely due to utility fees). During summer months, they banked enough credit that their usage in the cooler winter seasons was fully covered without breaking the bank.

Pay Attention to Solar Billing in Arizona

For solar homeowners, there are two primary costs to be aware of:

1. Solar Loan or Lease Payments

If you financed your solar system with a loan or lease, your monthly payment becomes part of your energy costs. Even with these payments, most Arizona homeowners find their total energy expenses lower than they were pre-solar.

2. Utility Charges

These typically include fixed fees to remain connected to the power grid, as well as charges for any electricity pulled from that grid when your panels aren’t enough.

SRP and APS Plans Explained: Do you Still have an Electric Bill with Solar Panels?

Here’s how solar billing works with Arizona’s two main utility companies:

1. SRP (Salt River Project)

SRP offers time-of-use plans, meaning electricity rates vary depending on the time of day. Solar customers benefit most by scheduling energy-intensive tasks like running appliances during solar production hours.

2. APS (Arizona Public Service)

APS offers good net billing options. This helps solar users earn credits and reduce their energy costs. However, note that summer rates might be higher, which makes producing excess solar power during this time particularly advantageous.

Solar Panels vs. Your Electric Bill

If you’re considering solar, it’s important to analyze your current electric bill and energy habits. Key questions include:

• How much do you currently spend on electricity?
• Could a solar system offset 100% of your usage?
• Would adding storage or battery solutions increase your savings?

By working with a local solar installer familiar with Arizona’s SRP and APS programs, you can get a customized design and savings estimate tailored to you.

Take the Next Step Toward Solar Savings

Switching to solar is about more than just cutting costs; it’s a step toward long-term financial and environmental benefits. With Arizona’s sunny skies, favorable utility programs like SRP and APS net billing, and the potential to minimize or even reverse your electric bill, there’s no better time to go solar. Reminder that we do serve Arizona with Commercial and Residential Installation Services. 

Want to know exactly how much you could save? Schedule a free consultation with our team today and take a step closer to energy independence. If you have any questions please Contact Solar Topps in Downtown Phoenix, AZ today!