"Your Electric Bill Will Be $0"
Once the panels are on, your electric bill goes away. You'll just have your solar payment instead.
What's actually true
Most homes with solar still get a utility bill every month. Fixed customer charges, minimum bills, low export credits under net billing, and winter months with less sun mean a $0 bill is rare.
A $0 electric bill is one of the most common solar promises, and one of the least accurate. Nearly every utility charges a fixed monthly fee you pay no matter how much power you make. Many now credit the power you send back to the grid at well below what you pay for power you buy. And panels make far less in winter. Most solar owners still get a bill. It’s smaller, but it’s there.
Why salespeople say it
“Replace your bill with a solar payment” is a simple swap that’s easy to sell. If your bill disappears, any solar payment below your current bill looks like pure savings. Once you account for the bill that remains, the math gets tighter. This is a top reason people later search why their electric bill is still high with solar.
What keeps your bill above $0
- Fixed charges. A customer or connection charge appears on every bill. Some utilities also have minimum bills. These have been rising: fixed-charge and minimum-bill increases were among the most common state solar policy actions in Q2 2026, according to the NC Clean Energy Technology Center.
- Net billing. California, Idaho, Illinois and other places now credit exports at much less than retail. Power you export at midday earns a small credit, and power you buy back at night costs full price. See net metering explained.
- Timing. Summer surplus may not carry over to cover winter, depending on your utility’s rules.
- Time-of-use rates. Evening power can cost more, right when solar output drops. See time-of-use rates and solar.
A worked example
These numbers are for illustration. Your utility’s rates will differ.
A home uses 10,000 kWh a year and installs a system that makes 10,000 kWh a year. Under net billing:
| Item | Amount |
|---|---|
| Solar used directly in the home (60%) | 6,000 kWh, saves $1,098 at 18.3¢ |
| Solar exported (40%) | 4,000 kWh, credited at 4¢ = $160 |
| Power bought at night and in winter | 4,000 kWh at 18.3¢ = $732 |
| Fixed charge at $15 a month | $180 |
| Remaining yearly bill | about $752, or $63 a month |
The system “covers 100% of usage,” yet the bill is about $63 a month, not $0. Under full retail net metering the remaining bill would be closer to the fixed charge alone. The 18.3¢ figure is the July 2026 U.S. residential average from EIA.
How it shows up in a proposal
- A “new utility bill: $0” line or a chart with your bill going to zero
- “100% offset” presented as “100% savings”
- Savings figures that equal your current bill times 12 times 25 years
- No mention of your utility, tariff name or export rate
Questions to ask
- “What will my utility bill be each month after solar? Please show it month by month.”
- “What fixed charges or minimum bill does my utility charge?”
- “How are exports credited on my utility’s current tariff? Is that rate locked?”
- “Does your savings estimate subtract the bill I’ll still pay?”
What to do next
Run your real usage through the solar calculator, check your state’s rules on net metering and your utility, and test the rep’s numbers in the sales claim checker. Our guide on whether solar is worth it shows how to judge savings without the $0 myth.
Bottom line: Judge solar by how much your bill drops, not by whether it disappears. A smaller bill can still be a good deal.
Where to report it
If a $0 bill was promised in writing and a contract was sold on it, report it to your state attorney general and the FTC at reportfraud.ftc.gov.
Related red flags
Inflated Solar Production Estimates
Production depends on your location, roof direction, tilt, shading and system losses. Estimates that ignore shading, skip degradation or use optimistic losses can overstate output, and every savings number built on it, by a wide margin.
"Net Metering Is Guaranteed Forever"
Net metering is set by state law and utility regulators, and it changes often. Grandfathering usually lasts a fixed number of years, and many states and utilities have already moved new customers to net billing, where exported power earns far less than retail.
Inflated 25-Year "Lifetime Savings" Numbers
Lifetime savings headlines usually add up 25 years of future dollars as if they were worth the same as today's, assume you stay the whole time, and sometimes count tax credits or inflated rate increases as savings. The real value is usually much smaller and depends on what else you could do with the money.
Solar Systems Sized Bigger Than You Need
Panels beyond what your home uses often earn far less than retail, especially under net billing, where exports may be credited at a few cents per kWh. Extra capacity raises the price faster than it raises savings.
"Electric Rates Go Up 6% to 8% Every Year"
From 2005 to 2025, average U.S. residential electricity prices rose about 3.1% a year, or about 0.5% a year after inflation (EIA and BLS data). Some years and some states spike higher, but a 6% to 8% yearly assumption for 25 years inflates savings a lot.