Orizon Energy
How to Read Your Electricity Bill & Estimate Solar Payback
Understanding your electricity bill is the first step toward estimating how much solar can save you. Most people set it and forget it when it comes to electricity use. This short guide helps homeowners identify the key bill elements, understand usage and pricing, and estimate solar payback without complicated math.
Step 1: Find your monthly kWh usage
Look for “kWh used”, this is the energy that your household used that month. You should collect 12 months of bills to find your average consumption as well as having an understanding of seasonal patterns. AC in the summer and heat in the winter often lead to very different pricing and a big picture understanding will help you see where you will make the most with solar.
Step 2: Identify your rates
Some utilities have flat rates, others have time-of-use or tiered pricing. Note:
- Price per kWh (regular)
- Any fixed monthly charges
- Off-peak/peak rates if applicable
Step 3: Calculate average daily usage
Average monthly kWh \ days in month = daily consumption or use. This helps estimate your system size requirements. Having a good understanding of your energy use is important even if you aren’t considering solar, it can help you reduce your usage and over all electricity costs.
Step 4: Rough system sizing
A quick rule: 1 kWh of solar typically produces roughly 3-4 kWh per day (this is an annual average accounting for shorter days during the winter) in many parts of Canada (varies by tilt/shading). To cover 30 kWh/day, you might need 8-10 kW of panels, but local production varies.
Step 5: Estimate savings
Multiply the kWh produced by your solar system by your price per kWh. That's the gross annual savings. Factor in self-consumption (how much solar YOU use vs what you send back to the grid.)
Step 6: Consider non-energy benefits
Solar can stabilize future energy costs, increase home resilience, and add resale value, these aren’t always calculated in the payback math but they do matter.
Use online production calculators or contact Orizon Energy for a free site specific estimate. Small changes like energy efficiency or shifting loads can improve solar economics as well.
Reading your bill and making rough calculations gives you the data to decide whether solar is right for you. The next step is a site assessment with an Orizon Energy Rep to give you a precise picture of what your life with solar looks like.
