How Do Your Solar Panels Work After They Are Turned On?

Once your solar system is installed and turned on, many homeowners wonder how solar panels work with the grid. Once your solar system is activated, your utility company will switch your account to something called net metering. That means you’re billed for the net amount of electricity you use—what you use minus what your system produces.

Sounds simple, right? It mostly is, but there are a few common scenarios that help explain how your bill will actually work once your panels are live.

The Basics: How Solar Panels Work With the Grid

Solar systems are set up in a bidirectional configuration. That just means you still pull power from the grid when needed (like you do now), but you also have the ability to send extra power back to the grid and earn credits for it.

Let’s walk through what your bill might look like in real life.

Scenario 1: You Produce More Power Than You Use

This is the sweet spot.

When your solar panels generate more electricity than your home needs during the day, the extra energy gets sent back to the grid. Your utility gives you energy credits in return. These credits help cover the times you do need to pull power from the grid—like at night or on cloudy days.

*Heads-up for SCE homeowners: SCE credits aren't dollar-for-dollar like most other utilities. Depending on your usage, adding is typically worth it to store your excess power and avoid giving it away at a lower rate.

Scenario 2: Your Usage is Higher Than Solar Production During the Day

Let’s say it’s a hot day, the AC’s blasting, and you’re using more power than your system is producing. No problem, you’ll pull what you need from the grid. If you’ve built up credits, they’ll cover the difference. If not, that extra usage shows up on your bill.

We size systems based on your historical usage to get you as close to offset as possible—but usage habits matter. If your energy needs increase after going solar (like adding an EV or a pool), that’ll affect your bill offset and credit balance.

Scenario 3: Nighttime usage

Your solar panels shut down at night: no sun, no production. So unless you have a battery, you’ll pull power from the grid. Ideally, your daytime credit bank covers this. Once the credits run out, you start seeing a charge on your bill again.

With a battery system: You can store your excess solar during the day and use it after sunset. Once your battery is drained, the system defaults back to grid power, until the solar can recharge it.

Billing Frequency Varies by Utility

Some utility companies bill annually, others bill monthly or bi-monthly, and some let you choose. We’ll help you understand what to expect based on your location and utility provider.

The Bottom Line

Your solar bill will look a little different than what you’re used to, but once you understand the flow, it’s simple. Produce power during the day, use it when you need it, and earn credits to balance things out.

If you’re considering solar and want help understanding how it would impact your utility bill, reach out for a free quote!