Solar Monthly Payment vs. Electric Bill: How to Compare the Full Monthly Cost
Could solar fit your monthly budget? Compare payments and remaining utility costs, then explore Sunwise's available payment options for your home.
In this article
Short answer: "Your solar payment will be less than your electric bill" is a claim to test, and testing it takes more than two numbers. After solar you still get a utility bill for the fixed charges and for whatever electricity the panels didn't cover, so the comparison that holds up is your current annual utility spending against the solar payment plus the utility charges that remain plus any recurring costs the contract adds. Do it for a full year, on the same usage, with the escalator and fees written in. The worksheet below is built for that.
Sunwise helps homeowners compare available cash, loan, lease and PPA proposals. If your goal is a solar payment below your current bill, we can help you understand the options and the other costs that belong in that comparison. Use this worksheet to prepare for that conversation; you do not need to work through it alone.
This isn't a guide to which financing type to choose; the solar financing guide and the lease and PPA explainer cover that. It's a way to check whatever written offer is in front of you.
How to tell whether a lower solar payment means lower total spending
A proposal usually puts two numbers side by side: your average monthly bill today and the proposed monthly solar payment. Three things are missing from that picture.
The bill that stays. Fixed charges don't go away with solar, and neither does the electricity you buy when the panels aren't producing enough. In January, production is low and usage is often high. The bill-reading guide shows what a post-solar bill contains line by line.
Costs inside the payment. Federal regulators have documented loan structures where fees were embedded in the amount financed. The Consumer Financial Protection Bureau reported that such "hidden fees typically range from between 10 to 30 percent of the cash price but can exceed 50 percent," described in the industry as dealer, program or lending fees (CFPB, Issue Spotlight: Solar Financing, August 2024). A low monthly payment can sit on top of a high financed amount.
Changes over the term. The same 2024 report describes power purchase agreements with annual rate increases of 1 to 5 percent, and loans that assume a large prepayment partway through the term; if the prepayment doesn't happen, "they will face large increases to their monthly payments." The payment in month one isn't the payment in year ten.
The worksheet
Fill in what you have from your own bills and the written proposal. Leave anything you don't have blank; a blank tells you what to ask for. Don't fill a blank with a number from a sales conversation.
Part A: What you pay now
| Line | Where it comes from | Your number |
|---|---|---|
| A1. Annual kWh used (last 12 months) | Utility bills or online account | |
| A2. Annual electricity charges (last 12 months) | Current-period charges across twelve bills; exclude arrears, late fees and unrelated services | |
| A3. Highest monthly bill and lowest monthly bill | Same bills | |
| A4. Monthly fixed charges (customer charge, any flat riders) | Bill detail |
A2 is your historical no-solar baseline. If rates have changed, model the same usage at the comparison-year tariff on both sides. For a cash purchase, put the purchase outlay in the year it is paid; this is a cash-flow worksheet, not a lifetime-return calculation. Keep it as a yearly figure. Monthly averages hide the swing between summer and winter.
Part B: What the proposal says the system does
| Line | Where it comes from | Your number |
|---|---|---|
| B1. Estimated annual production (kWh) | Written proposal | |
| B2. Production by month, if provided | Proposal or production model | |
| B3. Estimated kWh you'll still buy from the utility each year | Proposal, or A1 minus the portion of B1 used on site | |
| B4. How exported kWh are credited (retail credit, carry-forward, annual true-up value) | Your utility's net metering rules | |
| B5. Annual production degradation assumed | Proposal or equipment warranty |
If B3 is absent from your proposal, it needs clarification. Ask for it directly. If the proposal only states "100 percent offset," ask how the monthly mismatch between production and usage is handled under your utility's net metering, so the same exported kilowatt-hour isn't counted once as a bill credit and again as a cash benefit.
Part C: What you'd pay with solar
| Line | Where it comes from | Your number |
|---|---|---|
| C1. Solar payment, year 1 (loan, lease or PPA), annual total | Written contract | |
| C2. Escalator or payment change, and the year it applies | Contract | |
| C3. Any required prepayment, its amount and due month, and the payment if it isn't made | Loan documents | |
| C4. Amount financed vs. cash price, and any fee between them | Loan documents | |
| C5. Remaining utility bill, year 1, after export credits | Monthly tariff model of imports, export credits and fixed charges counted once; do not multiply imports by an all-in average that already includes fixed charges | |
| C6. Additional costs actually due in year 1, not already in C1 or C5 | Contract: recurring charges plus any upfront payment or prepayment due that year; list later sale/transfer charges separately | |
| C7. Total year-1 cost with solar: C1 + C5 + C6 | Arithmetic |
Part D: The comparison
| Line | Arithmetic | Your number |
|---|---|---|
| D1. Year-1 difference | A2 minus C7 | |
| D2. Year-5 difference | Recalculate the entire baseline and C1, C5 and C6 for year 5: payment changes, production degradation, utility rates/credits and costs due that year; record assumptions | |
| D3. Year-10 difference | Repeat the full year-5 method for year 10 | |
| D4. What has to be true for D1 to be positive | Written in your own words |
D4 is what the exercise is for. "Production must hit B1, the utility rate must stay at or above today's, and the payment must not re-amortize" is a clear statement you can check against the contract. If D1 depends on an assumption nobody will put in writing, you've found what to ask about.
Three rules for filling it in
Same usage on both sides. Compare the solar case against the baseline using the same annual kilowatt-hours. If the proposal assumes you'll use less electricity after solar, that's a separate decision, and it should be modeled separately.
Track incentives separately. A state program payment, a credit or a rebate may matter to the overall decision, but its payment schedule may differ from your solar bill and it has its own eligibility rules and timing. Keep it on a separate line with its own source and date, and don't net it against the payment.
Rate assumptions are assumptions. A utility rate increase in the proposal is a scenario, and so is a flat rate. Run D2 and D3 both ways and look at how much the answer moves. If a small change in the assumed rate flips the result, the proposal is leaning on the forecast more than on the system.
What a written offer should let you fill in
If the proposal is complete, you'll be able to fill every line in Parts B and C from the documents alone. If you can't, these are the questions to send back:
- What is the estimated kWh I'll still purchase each year, and how was it calculated?
- What is the cash price, what is the amount financed, and what accounts for the difference?
- Does the payment change at any point, by how much, and what triggers it?
- Is there a required prepayment, and what happens to the payment if I don't make it?
- What recurring costs does the agreement add, and which separate one-time costs apply upfront, later in the term or when I sell?
- Which net metering rules were used for exported electricity, and how is the annual true-up valued?
Only written answers go into the worksheet.
How Sunwise helps you choose a payment option you understand
Your payment choice affects more than the monthly amount. It changes who owns the system, what you pay upfront and which maintenance or transfer responsibilities you take on. Sunwise can help you compare solar payment options against the priorities that matter to you.
Come to the consultation with your current electric bill and, if you have one, a written solar proposal. Tell us whether your priority is upfront cost, monthly cash flow or ownership. We can help you compare available structures and identify the terms that need closer attention, including fees, payment changes and the electricity bill that remains.
The worksheet gives you a way to check the numbers; the Sunwise conversation helps you connect those numbers to a choice for your home. Final financing terms and approval come from the lender or provider, and savings depend on the actual system, usage and agreement.
Solar payment vs. electric bill FAQs
Will my solar payment be lower than my electric bill?
It may be, but the result depends on your written offer, usage, production and utility charges. The fair comparison is your current annual spending against the solar payment plus the utility charges that remain plus any recurring contract costs, over a full year and over the contract term.
Why do I still get a utility bill with solar?
Fixed charges stay, and you buy electricity whenever the panels produce less than you use, which is typical at night and in winter. Net metering credits reduce the energy portion, with rules that vary by utility.
What are the fees in a solar loan?
Some loans finance an amount above the cash price to cover dealer, program or lending fees. The CFPB has documented fees from 10 to 30 percent of the cash price, and higher in some cases. Ask for the cash price and the amount financed side by side.
What is a payment escalator?
A scheduled annual increase in the rate or payment set by your contract. The CFPB’s 2024 report described PPA escalators of 1 to 5 percent; that historical range is not a quote or a statement about Sunwise’s current offers. The year-10 payment can be materially higher than year 1, so run the comparison for later years too.
Should I count incentives in the monthly comparison?
Keep them on their own line. Their value, eligibility and timing are separate from the monthly cash flow, and mixing them in hides what the system itself does.
References
- Consumer Financial Protection Bureau, Issue Spotlight: Solar Financing (August 7, 2024), embedded fees, escalators and re-amortization risk in solar financing products
- Pennsylvania PUC, Using Alternative Energy at Home in PA (February 2024), how Pennsylvania credits excess generation and reconciles it annually
This worksheet is a way to organize the numbers in a written offer. It isn't financial advice, and it can't predict production, utility rates or incentive eligibility for your home. Use your own bills and the actual contract.