Solar power is becoming more popular as renewable energy becomes more accessible. This allows homeowners to save money on their monthly electricity bills and reduce their carbon footprint. But the question is, how much is the average monthly electric bill with solar panels?
Your location, the size of your system, and how much electricity you use will all affect the exact answer. Even a rough estimate shows that solar panels will save homeowners a lot of money over the long term.
In this article, we’ll look at factors that influence average electricity prices and show you how to estimate the savings potential.
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What Is the Average Electricity Bill?
The U.S. Energy Information Administration reports that the average electric bill in the United States is $121.01, according to data from 2021. The table below shows average electric bills by state.
| State | Average Monthly Electricity Bill in USD |
| United States (Avg.) | $121.01 |
| Alabama | $147.75 |
| Alaska | $133.89 |
| Arizona | $131.35 |
| Arkansas | $123.69 |
| California | $123.67 |
| Colorado | $91.96 |
| Connecticut | $156.21 |
| Delaware | $118.85 |
| District of Columbia | $92.42 |
| Florida | $130.40 |
| Georgia | $134.11 |
| Hawaii | $177.78 |
| Idaho | $97.62 |
| Illinois | $95.86 |
| Indiana | $126.51 |
| Iowa | $109.63 |
| Kansas | $115.53 |
| Kentucky | $124.67 |
| Louisiana | $131.37 |
| Maine | $99.44 |
| Maryland | $127.62 |
| Massachusetts | $136.37 |
| Michigan | $117.57 |
| Minnesota | $104.76 |
| Mississippi | $135.31 |
| Missouri | $118.55 |
| Montana | $97.84 |
| Nebraska | $108.09 |
| Nevada | $110.17 |
| New Hampshire | $125.24 |
| New Jersey | $112.39 |
| New Mexico | $87.31 |
| New York | $116.70 |
| North Carolina | $120.38 |
| North Dakota | $112.93 |
| Ohio | $112.21 |
| Oklahoma | $119.69 |
| Oregon | $106.49 |
| Pennsylvania | $117.11 |
| Rhode Island | $130.40 |
| South Carolina | $138.65 |
| South Dakota | $124.50 |
| Tennessee | $130.98 |
| Texas | $132.40 |
| Utah | $80.87 |
| Vermont | $109.24 |
| Virginia | $130.92 |
| Washington | $99.45 |
| West Virginia | $129.61 |
| Wisconsin | $100.18 |
| Wyoming | $96.82 |
How Much Can Solar Panels Save the Average Household?
The savings from solar panels can vary depending on the electricity rates in each state, as well as other factors like sun hours, usage, and local incentives.
On average, a home solar array produces 7.15 kW. Assuming an average of 4.5 peak hours of sun per day, this system would generate 32.2 kWh of electricity daily and 965 kWh monthly.
In 2021, the average electricity bill in the U.S. was $121.01. A 7.15 kW solar array could produce more electricity than the average monthly usage of 886 kWh in the U.S., resulting in savings of $121.01 for the average American homeowner.
We can estimate the savings on a state-by-state basis. For states with average monthly consumption below 965 kWh, a 7.15 kW solar array would cover their electricity needs. The estimated monthly savings for these states would be equal to their average electricity bill.
To calculate the savings, we can multiply the monthly electricity consumption by the average rate of that state. For example, a typical home in Alabama with a solar panel that generates 965 kWh at a rate of 12.96 cents/kWh can save $125.06 per month:
Solar arrays with an average output of 965 kWh x $0.1296 per kWh = $125.06
| State | Average Price Per kWh (Cents) | Average Monthly Usage (kWh) | Estimated monthly savings with solar panels (USD) |
| Alabama | 12.96 | 1,140 | $125.06 |
| Alaska | 22.55 | 594 | $133.89 |
| Arizona | 12.54 | 1,048 | $121.01 |
| Arkansas | 11.27 | 1,098 | $108.8 |
| California | 22.82 | 542 | $123.67 |
| Colorado | 13.07 | 704 | $91.96 |
| Connecticut | 21.91 | 713 | $156.21 |
| Delaware | 12.52 | 950 | $118.85 |
| District of Columbia | 13.09 | 706 | $92.42 |
| Florida | 11.90 | 1,096 | $114.84 |
| Georgia | 12.51 | 1,072 | $120.72 |
| Hawaii | 33.49 | 531 | $177.78 |
| Idaho | 10.16 | 961 | $97.62 |
| Illinois | 13.18 | 728 | $95.86 |
| Indiana | 13.37 | 946 | $126.51 |
| Iowa | 12.73 | 861 | $109.63 |
| Kansas | 12.98 | 890 | $115.53 |
| Kentucky | 11.50 | 1,084 | $110.98 |
| Louisiana | 11.02 | 1,192 | $106.34 |
| Maine | 17.02 | 584 | $99.44 |
| Maryland | 13.12 | 973 | $127.66 |
| Massachusetts | 22.89 | 596 | $136.37 |
| Michigan | 17.54 | 670 | $117.57 |
| Minnesota | 13.50 | 776 | $104.76 |
| Mississippi | 11.56 | 1,171 | $111.56 |
| Missouri | 11.41 | 1,039 | $110.11 |
| Montana | 11.22 | 872 | $97.84 |
| Nebraska | 10.75 | 1,005 | $103.74 |
| Nevada | 11.49 | 959 | $110.17 |
| New Hampshire | 19.85 | 631 | $125.24 |
| New Jersey | 16.35 | 687 | $112.39 |
| New Mexico | 13.52 | 646 | $87.31 |
| New York | 19.48 | 599 | $116.70 |
| North Carolina | 11.32 | 1,063 | $109.24 |
| North Dakota | 10.85 | 1,041 | $104.70 |
| Ohio | 12.77 | 879 | $112.21 |
| Oklahoma | 11.00 | 1,088 | $106.15 |
| Oregon | 11.37 | 936 | $106.49 |
| Pennsylvania | 13.76 | 851 | $117.11 |
| Rhode Island | 22.30 | 585 | $130.40 |
| South Carolina | 12.86 | 1,078 | $124.10 |
| South Dakota | 12.22 | 1,019 | $124.52 |
| Tennessee | 11.07 | 1,183 | $106.83 |
| Texas | 12.11 | 1,094 | $116.86 |
| Utah | 10.43 | 775 | $80.87 |
| Vermont | 19.26 | 567 | $109.24 |
| Virginia | 11.96 | 1,094 | $115.41 |
| Washington | 10.11 | 984 | $97.56 |
| West Virginia | 12.15 | 1,066 | $117.25 |
| Wisconsin | 14.52 | 690 | $100.18 |
| Wyoming | 11.17 | 867 | $96.82 |
6 Factors that Influence Solar Savings
You can see from the table above that the savings vary widely between states. Other factors can also influence how much you save on your electric bill such as:
- Location
- System Size
- Energy Consumption
- Electricity Rates
- Government Incentives
- Panel Quality
1. Location
This measurement is called “peak sun hours” and reflects the average number of hours that the sun shines in a day. Solar arrays in regions with six hours of sun per day can collect twice as much power as those with just three hours.
The temperature in your area will also influence the output of your solar array and your savings potential. Solar panel efficiency decreases when temperatures are too high, while they perform better in cooler temperatures.
2. System Size
The size of your solar array correlates to the amount you will save. One solar panel will not have much impact on your electricity bill. Installing an entire rooftop array has a more significant impact, especially if you consider the savings that will be made over the lifetime of the array.
3. Energy Usage
The amount of money you can save depends on the energy usage of your family. Whether you use a lot or very little energy, there are potential savings to be made. Over time, the average family can save a significant amount of money on their energy bills, based on their average usage and rates.
4. Electricity Rates
Electricity rates are higher for people who will see a greater reduction in their bill. Savings are huge in states like Hawaii, where electricity is over 33 cents a kWh. Hawaiian solar panels will save you more than three times as much money compared to other states, such as Louisiana and Oklahoma where electricity costs are around 11 cents a kWh.
5. Incentive
There are many federal incentives that can be used to reduce the cost of installing a solar system in a home. Tax credits, rebates, and the Federal Solar Tax Credit can save you thousands of dollars on the cost of installation and purchase. Local and state agencies offer additional rebates and credits.
6. Solar Panel Quality
Solar panels are a major factor in determining their ability to produce energy and the amount of money they can save. You should only purchase your panels from a manufacturer you can trust. You can save money by buying cheaper panels, but you will end up losing money over time.
To function at their best, even the highest quality panels need some maintenance. Regularly clean your panels by removing any dirt, debris, and accumulation of ice or snow.
Be sure to avoid trees and shrubs that cast shadows onto your panels. The production of panels can be drastically reduced if sunlight is blocked. Check for any damage on a regular basis. If your system is configured in a certain way, a damaged panel can affect the output of your entire array.
Last but not least, ensure that your panels are positioned in the best possible position to catch sunlight. Use tilting brackets or solar tracking in order to maximize the efficiency of your panels as the sun’s trajectory varies throughout the year.
Final Thoughts – Average Monthly Electric Bill With Solar Panels
Solar power offers the dual benefits of clean, renewable energy and substantial long-term savings. By taking into account factors such as your location, system size, and energy consumption, you can estimate your potential savings and assess whether solar panels are a worthwhile investment for your home.
Embracing solar power doesn’t necessarily mean committing to a large rooftop array; there are alternative options available to enjoy the advantages of solar energy.
If you’re interested in exploring the possibilities, consider reaching out to ESD Solar, a trusted provider in the industry. Their team of experts can guide you in finding the best solar solution for your needs.
Take the first step towards a brighter, more sustainable future, call us now for a FREE estimate!
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