Whether you’re trying to lower your monthly costs, understand why your bill keeps increasing, or you’re curious about solar, this guide will help you understand exactly what you’re paying for.

On this page you’ll learn:

• How to read your electric bill
• What every major charge means
• Why electricity prices continue to rise
• How community solar and rooftop solar change your bill
• Which charges solar can help reduce

Have your latest electric bill handy while you read!

Whether your provider is PECO, PSE&G, Delmarva Power, Atlantic City Electric, ComEd, National Grid, Central Maine Power, or another utility, you’ll usually find the same basic information:

• Account Number
• Billing Period
• Total Amount Due
• Energy Usage (kWh)
• Supply Charges
• Delivery Charges
• Taxes & Fees

Although the layout changes, the charges work very similarly.

Account Number: Your unique customer account with your utility company.

Billing Period: The dates you’re being charged for.

Energy Usage (kWh): This shows how much electricity your home used during the billing cycle. The more electricity you use, the higher many of your charges become.

Supply Charges: This is what you pay for the electricity itself. Your utility purchases electricity from power generators and charges you for every kilowatt-hour (kWh) you use. Community Solar can reduce this portion of your bill.

Taxes & Fees: State taxes, local fees, and utility program charges required by law.

Delivery Charges: This pays for maintaining power lines, poles, substations, transformers, and the infrastructure that delivers electricity to your home. Even if you generate your own electricity with rooftop solar, you’ll usually continue paying certain delivery charges because you’re still connected to the electric grid.

Compare Your Electric Bill

Rooftop Solar Electric Bill

Which Charges Can Solar Help Lower?

Electric bills have increased across the country over the past several years.

Some common reasons include:

• Higher fuel costs
• Aging electrical infrastructure
• Increased electricity demand
• More frequent extreme weather
• Utility maintenance and grid upgrades
• Inflation

While you can’t control utility rate increases, you can reduce how much of those increases affect your household.

Some utility companies charge different prices depending on when you use electricity.

This is called Time-of-Use (TOU) Pricing.

For example:

☀️ Afternoon (High Demand)
Higher electricity prices

🌙 Late Evening
Lower electricity prices

Not every utility uses Time-of-Use pricing, but many are expanding these programs as electricity demand grows.

Understanding your electric bill is the first step toward lowering it.

Whether you’re interested in community solar, rooftop solar, or simply want to know if you’re paying more than you should, our team is here to help.

Visit our Solar Glossary to learn about terms like: 

• Kilowatt-hour (kWh)
• Net Metering
• Community Solar
• Renewable Energy Credits (RECs)
• Solar Renewable Energy Certificates (SRECs)
• Capacity Charges
• Demand Charges
• Time-of-Use Rates
• Utility Supply
• Renewable Portfolio Standards