• Home Home

After export rates drop, solar homeowner's bill barely moves, and owners point to batteries

"Figure out how many kWh you're currently exporting cheap and then buying back expensive at night."

A house with rooftop solar panels at sunset.

Photo Credit: iStock

A homeowner who expected solar panels to slash their electric bill found a frustrating surprise instead. The system covered daytime use, but the monthly charges barely moved.

For solar customers in places where utilities pay less for exported power, producing electricity is only part of the savings equation; when that power is used can matter just as much.

Here's what to know

In a Reddit post, the original poster wrote, "I've been on solar for about a year now. The panel do a good job during the day, but my electricity bill didn't drop as much as I expected."

They said that sending power back to the grid didn't generate as much money as they thought, with export rates cut. Since they mostly used power in the evenings when rates are higher, they found themselves racking up a hefty bill when the sun went down. 

"I'm starting to wonder if I should be doing more to use the solar power while it's actually being generated," the OP added. "For people who've been through this similar rate change, what actually made the biggest difference to your bill?"

Replies in the thread largely pointed to the mismatch between when the panels produce and when the household needs power most. If surplus solar is sold to the grid for a low credit during the day, then replaced with higher-priced electricity after sunset, the monthly savings may look disappointing.

Storage came up repeatedly as a possible fix for that timing problem. One commenter explained, "A battery fixes exactly your problem (stores the daytime production for your evening use instead of exporting it for pennies)." 

Another described a sharply improved result after adding batteries, "My average bill the last 12 months was -$4."

FROM OUR PARTNER

Save $10,000 on solar panels without even sharing your phone number

Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner.

Solar panels can save you more than $50k over their 25-year lifespan, and EnergySage can help you save as much as $10k on installation. Which begs the question — isn't that worth an email or two?

For homeowners weighing whether storage makes sense, it may be worth exploring EnergySage to get information about home battery storage options, including competitive installation estimates. EnergySage has teamed up with the electrification brand Qmerit to guarantee you get the best price on home battery storage solutions. Another option is Pila, which offers excellent battery backup options, with plug-and-play batteries priced at a fraction of what a whole-home backup system would cost.

More background

For many homes, solar generation is strongest around noon, while major household loads arrive later in the day as people cook, cool the house, do laundry, or unwind in the evening.

That timing mismatch becomes more expensive when export compensation drops. In the discussion, people said it can help to move flexible uses, including dishwashing, laundry, EV charging, and water heating, into daytime hours so more of the solar power is consumed on-site. 

A battery changes that equation by holding onto excess daytime production for nighttime use, and commenters noted that it can also provide backup power if the grid goes down.

Some replies suggested looking beyond the panels themselves. A rate increase, or a jump in electricity demand from additions such as an EV, a pool, or heat pumps, can also shrink the savings a homeowner expects.

What can be done?

Before buying anything, it can help to line up a few basic numbers: solar output, total electricity use, the utility's rates, and when the home is drawing power. Heavy evening purchases from the grid can signal that timing, not total generation, is the main issue.

Changing appliance schedules can also reveal how much of the shortfall can be addressed without installing new hardware.

If that still leaves a big gap, the next step is to compare potential battery savings with the price of installation. 

As another commenter explained, "Figure out how many kWh you're currently exporting cheap and then buying back expensive at night. That gap, over a year, is roughly the most a battery saves you." 

That estimate can give homeowners a rough sense of whether storage is likely to pay for itself.

Where can I learn more?

Rooftop solar savings can hinge on timing, storage, and shifting utility policies.

• As prices swing, homeowners are turning to solar batteries to keep savings at home.

• In Connecticut, lawmakers gave home batteries a major advantage while rooftop solar incentives faced caps.

• In Australia, one 20-kilowatt setup made blackouts a thing of the past and even pushed monthly credits higher.

• For one homeowner, the impact of rooftop solar on a steep electricity bill was immediate.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider