Solar Energy

How Do Solar Panels Work with Your Electric Bill?

Living in one of Canada’s sunniest cities, it surely crossed your mind to have an Edmonton solar panel installation to sustain your energy needs and save money. 

But the big question is: Will a solar PV system wipe out your bill?

We get that question a lot from homeowners, so we’re here to give you detailed information on how solar panels interact with your electric bill in Edmonton.

Key Takeaways

  • Solar panel installation reduces electric bills, but does not eliminate them completely.
  • Factors like grid connection, system efficiency, and usage habits impact your monthly costs.
  • Edmonton residents can still save money long term by investing in solar installations.

Does Installing Solar Panels Eliminate Energy Bills?

No, installing panels doesn’t eliminate energy bills entirely. Most homes stay connected to the grid for backup power when solar panels aren’t producing energy, like at night or during bad weather.

Your bill may include:

  • Utility service charges (flat fees for grid maintenance)
  • Excess energy costs if your home uses more power than your system generates
  • Nighttime or cloudy-day usage, when panels don’t produce enough electricity

Most homes will still owe something monthly unless they have battery storage and are 100% off-grid. While the installation process covers your roof setup and grid tie-in, net billing agreements don’t cancel fixed costs. You may receive credits for excess electricity, but basic utility fees will remain.

So yes, your bill goes down, but it doesn’t disappear.

Want clear answers about solar panel installation costs and long-term savings? Get expert advice from trusted Edmonton solar installers.

What is the Average Monthly Electric Bill With Solar Panels in Edmonton? 

In Edmonton, the average monthly electricity bill is between $50–$100/ month, down from a non-solar average of $50–$200, This may depend on your usage, system size, and how much excess energy you generate. Edmonton gets over 2,300 hours of sun annually, which gives your panels a good chance to offset a high portion of your electricity use.

Reasons You’ll Still Have an Electric Bill With a Solar Panel System 

Even well-designed systems can’t remove your bill entirely. Here’s why:

Nights and Cloudy Days

Solar power system generates energy more efficiently when there’s sunlight. At night, or during overcast weather, your home draws electricity from the grid. Unless you have solar battery storage, you’ll always rely on the utility for backup.

Utility Service Charges in Alberta

Every power user in Alberta pays grid access fees. These fees cover the maintenance of transmission infrastructure. Whether you use 10 kWh or 1,000 kWh, you’re still charged a base rate, even with solar energy supporting your home.

Absence of Solar Battery Storage

Most solar installations don’t include batteries. Without one, any excess electricity your system produces during the day doesn’t power your home at night. It goes to the grid, and you may or may not receive credits, depending on your utility provider.

No Net Metering

Net metering allows you to send excess energy back to the grid and get full credit for it. Alberta doesn’t have a province-wide net metering policy. Without this, your credit value is lower than your consumption rate.

For Edmonton residents, these conditions make it hard to hit a $0 bill without a larger system, battery backup, and a highly efficient home.  

Why Your Solar Panels Are Not Reducing Your Electricity Bills 

Installing solar panels can lower your monthly energy costs. If you’re not seeing the potential savings you expected, a few technical reasons may be at play.

1. Your House is Using More Power Than Your System Can Generate

Even with a high-efficiency system, constant use of appliances, EVs, space heaters, or AC units will eat into your savings. A solar system sized for moderate usage won’t keep up with high-demand patterns.

For example, a 10 kW system on a home using 1,500 kWh/month will only offset about 60–70%. That leaves 500+ kWh still coming from the grid.

2. Your PV System Isn’t Working Properly as It Should Be

Underperforming systems are more common than you’d think. Shade from other structures, snow buildup, or inverter issues can cut your energy generation. Search “best solar installers near me” or look for an installer who schedules regular checks and offers real-time monitoring.

If you already have a system in place, observe the following:

  • Unexpected drops in production
  • System offline alerts
  • Visible wear on panel hardware

These are indicators that there’s something wrong with your system. That’s why you should work with a qualified installation crew to guarantee the proper installation of your PV setup.

3. You’re Reading the Meter Wrong

Some homeowners think they’re still paying for solar energy. But your meter shows net energy (usage minus production). You’re not paying your solar provider; you’re paying the utility for the grid portion.

If your power use is normal and your system was installed correctly, the issue might be how you’re reading the meter. This happens often, and there’s no need to feel embarrassed.

Ask your solar installers for a breakdown, or request a meter walkthrough during a site visit or initial consultation. In most cases, this clears up confusion about why your electric bill is still high with solar panels. 

Ready to cut down your electric bill? Explore how solar can work for your home in Edmonton with expert help and accurate estimates.

How to Properly Use Solar to Reduce Own Electricity at Home? 

Reducing your bill with solar isn’t automatic. You need a smart strategy that combines energy habits and equipment setup. Here’s how:

  • Time your usage: Run dishwashers, washing machines, and dryers during sunny hours.
  • Limit overnight demand: Avoid high-consumption activities after sunset unless you have storage.
  • Choose energy-efficient appliances: Upgrade older units that drain electricity.
  • Work with a solar team: Hire a project manager and install crew that optimizes for efficiency, panel placement, and system size.

With the right mix of usage habits and solar panels managed carefully, many homes in western Canada see the long-term benefits for years.

Safeguard Your Home from Rising Energy Costs | Contact the Best Solar Contractor in Edmonton

Electric bills aren’t going down anytime soon, but solar can help you take control. Even if your bill doesn’t disappear completely, the potential savings and long-term benefits are hard to ignore.

MAG Solar team offers clean energy solutions to reduce your environmental footprint and energy costs. Our solar installers make the entire process a hassle-free experience, from site visit to final setup. Ask us about government rebates and federal rebates to offset solar panel installation costs.

Book your initial consultation with MAG Solar.

Frequently Asked Questions

Can solar rebates be used for Edmonton solar panel installation to save you money?

Yes. The $5,000 solar rebate in Canada comes from the Canada Greener Homes Grant—a federal program that helps cover the cost of solar panel installation for homeowners. Managed by Natural Resources Canada, the rebate supports the installation of solar PV systems and related upgrades like energy audits. It lowers upfront costs, encourages clean energy use, and reduces your long-term energy bills.

What is the difference in the electric bill before and after PV panels?

Solar panels can reduce your electric bill. For example, if your average monthly bill is around $40, a 5kW rooftop system could bring it close to zero (not entirely zero). If your bill is about $94, it might drop to around $54. While you may still have to pay some utility fees, most Edmonton residents see noticeable savings after installing a solar system.

How much can I save a month with solar panels?

If your electricity bill is usually $150 and your solar loan is $120, you’d save about $30 a month to start. Since utility rates go up over time and your solar payment stays the same, your savings can grow, often reaching $50, $75, or more per month later on.

What is the $5000 solar grant in Alberta?

The $5000 solar rebate in Canada comes from the Canada Greener Homes Grant, a federal program that helps cover the cost of solar panel installation. Managed by Natural Resources Canada, the rebate supports the installation of solar PV systems and related upgrades. 

 

According to Solar Alberta, the Town of Canmore and the City of Wetaskiwin offer a $5,000 solar grant. These programs offer ten $5,000 grants to help residents install a minimum 4kWh solar panel system and five $5,000 grants for businesses and not-for-profits installing at least a 5kWh system.

Is a solar panel worth it in Edmonton?

Yes, installing solar panels in Edmonton is worth it. With about 2,300 sunlight hours annually, homeowners can generate plenty of clean energy. Plus, Edmonton’s Solar Rebate Program offers up to $0.50/watt for multi-unit residential properties, which makes it even more cost-effective. Eligible owners can save up to $4,000 per unit, with maximum annual savings of $100,000.

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