My solar panels are installed. When will I see savings on my power bill?

Environmental concern is definitely one factor behind the explosive growth in rooftop solar we've witnessed over the past decade.

But for most folks struggling to get by in an increasingly competitive world, the bottom line is... well, the bottom line.

And solar panels would still be the niche novelty item they were 20 years ago if increased efficiency and lower production costs hadn't flipped the balance sheet.

The main reason so many homeowners and businesses are investing in solar power is simple. They've discovered that, at the end of the day, they'll wind up spending a lot less money on energy.

So, for anyone who's made the investment, it's natural to start anticipating the first of many months of savings as soon as their solar system is installed.

A little patience, however, is required. There's going to be a bit of lag time before those reduced energy costs start kicking in.

Electric bill lag time

One reason you'll need to be patient is pretty straightforward. Your electric company bills you for the electricity you used in the previous monthly billing period. There can also be some lag time between the end of your billing cycle and when you actually receive the bill.

The upshot is that the first electric bill you see after your solar system is installed probably still won't reflect much of the time after it was up and running.

It's possible it won't even cover any of the days after your panels started producing energy.

Inspection

There's also going to be some lag time between when installation is completed and the day your solar system can be turned on.

Before you're allowed to start using it, it'll have to be inspected by your local municipality to make sure it's in compliance with all their building, fire, and electrical codes.

Depending on how busy they are, it may take anywhere from one to four weeks for them to come out and inspect your system.

Since each local municipality has its own unique set of rules, it's a good idea to use a local installer who's familiar with the ins and outs in your area and, thus, can efficiently and successfully navigate you through the inspection process.

If your installer fails to strictly follow any relevant local safety codes or departs from the designated bureaucratic procedure, getting your solar system up and running is going to take a whole lot longer.

Permission to operate

Even after your installation has passed local inspection, there's still one more hurdle before it can be turned on.

Since you're going to be compensated for the surplus solar power it generates, your solar system will have to be capable of sending electricity back to your utility company through the grid.

That means that, before it's turned on, you'll have to get Permission to Operate (PTO) from your local utility company so they too can ensure that everything is set up safely.

The application procedure varies depending on your local utility. So, once again, it's a good idea to use a local installer who's familiar with what your utility company requires and, hence, can successfully navigate the process for you.

The length of time it takes utilities to process PTO applications also varies dramatically. Once you've passed local inspection, you still may have to wait anywhere from three to eight weeks for permission to operate.

Utility fees

The upshot is that even after your solar system is installed, it could take as long as several months till you start seeing any savings.

Finally, when that time comes, even if your solar panels are generating all the power you need, don't expect to not get any electric bill.

Your utility company is likely charging a small fee simply to do business with them.

Again, the amount varies, but you can probably expect to pay around ten dollars a month even if you're not drawing any electricity from the grid.

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