If you’ve been staring at your PG&E or SCE bill wondering how high it can go, you’re not alone. Rates in California have climbed well past 30 cents per kWh in most territories, and they show no sign of slowing down. This guide gives you a straight answer: what a realistic average monthly electric bill with solar panels actually looks like, broken down by utility, system type, and what determines where you land.
Quick Answer
- Most correctly sized solar systems drop your monthly bill to $15 to $40 in fixed service charges, plus a smaller annual true-up cost.
- Adding a battery typically pushes that down to $0 to $15 a month, since it offsets expensive evening usage instead of buying it back from the grid.
- You will rarely hit a permanent $0 bill. Every major California utility charges a fixed connection fee that solar cannot eliminate.
- Your bill after solar depends on four things: system size versus usage, your utility’s export rate under NEM 3.0, fixed monthly charges, and whether you have a battery.
Why Your Current Bill Feels Out of Control
California electric rates keep climbing regardless of usage. Southern California Edison customers were paying around 35 cents per kWh as of early 2026, among the highest rates in the state. PG&E and SDG&E customers aren’t far behind, with typical non-CARE residential bills running well over $200 a month for average usage.
There is also no such thing as a flat, predictable bill anymore. Time-of-use pricing means the same kWh costs different amounts depending on when you use it, with peak evening rates in some territories reaching 45 to 75 cents per kWh. That volatility is exactly why more homeowners want a realistic post-solar number instead of just hoping the next statement is lower.
Average Monthly Bill by System Type
| System type | Typical monthly bill | Why |
|---|---|---|
| No solar | $150 to $250+ | Full retail rate on all usage, rising 4%+ per year |
| Solar only, correctly sized | $15 to $40 | Fixed service charge plus a small true-up balance |
| Solar undersized for usage | $60 to $150+ | System doesn’t cover enough of your load, usually after adding an EV or heat pump |
| Solar plus battery | $0 to $15 | Battery offsets peak-rate grid usage instead of exporting cheap and buying back expensive |
Average Bill by California Utility
Fixed charges and export rates differ by utility, which changes what “average” looks like depending on where you live.
| Utility | Typical fixed monthly charge | Export credit rate (NEM 3.0) | Notes |
|---|---|---|---|
| PG&E | $10 to $25, plus a newer Base Services Charge that applies regardless of solar output | 4 to 10 cents/kWh | Fixed charges apply even to a fully offset system |
| SCE | $10 to $20 | 4 to 10 cents/kWh | Among the highest peak TOU rates in the state |
| SDG&E | $10 to $20 | 4 to 10 cents/kWh | Historically the highest overall retail rates in California |
| LADWP | Varies by tier, generally lower fixed fees | Closer to full retail credit, outside NEM 3.0 | Municipal utility, not subject to the statewide Net Billing Tariff |
| SMUD | Flat monthly service charge | No export credit under the Solar and Storage Rate | Sacramento-area municipal utility with its own rate structure |
What Determines Your Bill After Solar
System Size Versus Your Actual Usage
Your bill after solar comes down to one core question: how much of your usage does your system actually offset? A system sized to cover close to 100% of your annual consumption should leave you with only a small monthly service charge in most months. If you added an EV or a heat pump after your system was designed, your usage may have outgrown your panels, which is one of the most common reasons homeowners see a higher-than-expected bill. Reviewing your average solar installation cost alongside your usage history helps confirm whether your system was sized correctly from the start.
NEM 3.0 and the True-Up Bill
Under California’s current Net Billing Tariff, commonly called NEM 3.0, exported solar energy is credited at a much lower rate than what you pay to pull power from the grid. Export credits typically run 4 to 10 cents per kWh, while retail import rates during peak hours can be 45 cents or more. That gap means your monthly statement and your annual true-up bill are calculated differently, which is why homeowners without a battery sometimes get surprised by their true-up. For the full mechanics, see how NEM 3.0 reshaped solar savings.
Fixed Charges Solar Cannot Eliminate
Even a system that covers 100% of your usage will not zero out your bill. Every major California utility charges a fixed monthly fee for grid connection, regardless of how much solar you generate. These show up as delivery fees, customer charges, or non-bypassable charges, and they are the reason a permanent $0 bill is rare even with a large, well-designed system.
Time-of-Use Rates and When You Use Power
If you’re on a time-of-use rate plan, which is now standard for most NEM 3.0 customers, what you pay varies by hour. Electricity pulled from the grid during the 4 to 9 p.m. peak window costs the most, while the credit you earn for exporting midday solar is worth the least. This is the single biggest reason two homes with identical system sizes can end up with very different bills. See our full breakdown of how time-of-use rates affect solar savings.
Where Battery Storage Fits In
Because NEM 3.0 pays so little for exported solar, a battery has become one of the most effective ways to control your bill. Instead of selling cheap daytime solar back to the grid, a battery stores it and discharges it during the 4 to 9 p.m. peak window, when grid electricity is most expensive.
- Homes with solar plus a correctly sized battery typically see 85% to 100% of their monthly bill offset.
- Battery owners see the most predictable bill of any group, since they rely on the grid least during the hours it costs the most.
- A battery also protects against a large annual true-up bill, since less unused solar gets exported at the low NEM 3.0 rate in the first place.
Track how this plays out month to month with our California solar bill tracker, or see a full residential solar savings chart for California.
Other Factors That Affect Your Bill
- Roof age and orientation. A shaded, poorly oriented, or aging roof quietly reduces output, which shows up later as a higher bill. Check whether your roof is ready for solar before finalizing a system design.
- Future EV or appliance additions. NEM 3.0 allows systems sized up to 150% of current consumption when you can show planned increases, which keeps your bill low as usage grows.
- Installer sizing accuracy. A system built around a template rather than your actual usage pattern is one of the most common reasons a bill ends up higher than expected.
How US Power Solar Helps You Get There
As an exclusive Qcells partner, US Power Solar sources American-made panels factory-direct, keeping upfront cost down without compromising equipment quality. Every system comes backed by a 25-year comprehensive warranty covering panels, workmanship, and performance. CSLB-licensed consultants design every system around actual usage data, not a one-size-fits-all template, which is the sizing decision that most directly determines whether your bill ends up low or disappointing. See how these panels perform for other California homeowners in our Qcells solar panel performance review.
Frequently Asked Questions
What is a typical monthly electric bill after installing solar panels in California?
Most homeowners with a correctly sized system see a fixed service charge of $15 to $40 a month, plus an annual true-up cost based on winter and evening usage. Adding a battery typically pushes that number even lower, since it captures peak-rate savings the grid would otherwise charge you.
Does the average monthly electric bill with solar panels ever reach zero?
Rarely permanently. Every major California utility charges a fixed grid connection fee that applies regardless of solar output. Homes with solar plus a battery sized to cover 100% to 150% of usage can get very close, often $0 to $15 a month, but a small fixed fee usually remains.
Why did my solar bill go up even though I have panels?
This is usually a sizing issue. If your household usage increased after your system was installed, most commonly from adding an EV, your panels may no longer offset enough of your consumption to keep your bill flat.
How does NEM 3.0 affect my monthly and annual bills?
NEM 3.0 credits exported solar at a lower rate than what you pay to import power, so your monthly statement can look different from your true-up bill. Homeowners without a battery tend to see a larger annual true-up because they’re exporting cheap daytime solar and buying back expensive evening power.
Is a battery worth it if I just want a lower monthly bill?
For most California homeowners under NEM 3.0, yes. Because export credits are so much lower than peak retail rates, a battery lets you use your own solar power instead of selling it cheap and buying it back expensive, which directly reduces both your monthly and annual totals.