If you have noticed an increase in your electric bill, look beyond your energy usage. Your energy costs, demand, fuel charges, and fixed charges may be affecting your electricity bill. Learn more about each component, how it applies to your bill, and what solar can do for you.
Main Takeaways
- Electricity usage is only one component of your overall bill.
- Energy charges are calculated based on every kilowatt-hour (kWh) consumed.
- Demand fees increase during periods of high, simultaneous power consumption.
- Solar power lowers the amount of energy purchased from the utility, though specific line-item fees still remain.
Start with your bill.
Before you buy solar panels, review your electric bill. Your bill will include various charges depending on your Florida utility and rate plan. These can include fixed charges, energy charges, demand charges, fuel charges, etc.
Look at what you are actually paying for. Once you understand the charges, you can see where you may be able to reduce costs with solar, which can make you feel more empowered about your energy choices.
Base charges: The cost of staying connected
Your electric bill may include a fixed service or base charge. This generally covers the cost of maintaining your connection to the utility.
Since this charge isn’t tied to how much electricity you use, solar isn’t designed to affect it. Solar makes the real difference on the energy charge, which is usually the biggest part of a commercial bill, and that’s where a well-designed solar plan can deliver strong, lasting savings.
Where solar can help
Energy charges reflect how much electricity your business uses, measured in kWh.
Solar can provide significant benefits here. Solar systems offset the electricity you purchase from the grid and reduce energy costs. This is particularly valuable for businesses that use electricity during daylight hours, when the solar system is likely generating electricity.
Demand charges & solar
Demand charges for commercial customers are based on a customer’s peak demand (measured in kilowatts) and can spike when energy usage is high.
Solar power may not meet the higher demand of a restaurant or manufacturer during busy hours, but pairing solar with battery storage can help you manage peak demand and maximize savings, depending on system size.
Fuel adjustments: Why your bill can change
Fuel charges cover the cost of fuel used to produce electricity. These costs can change, so your bill may change even if you use the same amount of energy.
Fuel charges are typically billed per kWh, so they usually go down when solar reduces the electricity you buy. See your rate plan for more information.
Other charges: Not everything will change
Commercial bills can also include other charges that depend on your provider and rate plan, such as franchise fees, surcharges, or specific program costs. These charges can be fixed or variable, depending on your usage level and the services you signed up for.
These charges usually remain on the bills even after solar panel installation. So it is essential to set the right expectations from the start: solar will reduce the electricity you buy from the utility, but it won’t remove every line item on the bill.
What should your business look at first?
You don’t need to guess where your biggest opportunity is; start by reviewing your electricity data. Review the following items on your commercial electricity bill:
- Electricity consumption
- Monthly consumption patterns
- Highest demand
- The charges that fluctuate from month to month
- Commercial rate plan
This information will help you understand your load’s financial implications and determine whether solar, battery storage, or a combination of both is the right solution for you.
Solar comes first
Solar can reduce the electricity your business buys from the utility, lowering your bill. Battery storage is an additional option for businesses with high peak demand. Some businesses may only need solar, while others may benefit from combining solar and storage.
Tampa Bay Solar offers a free energy audit to help you choose the option that works best for your business.
FAQ
Why is my Florida business electric bill so high?
Several charges make up your electric bill, and solar can help reduce some of them, mainly energy charges.
What is the difference between kW and kWh?
kW is kilowatts, a unit for measuring power; kWh is kilowatt-hours, a unit for measuring energy.
How long does it take to start seeing savings after going solar?
Most businesses start seeing savings as soon as the system turns on.
Our Service Areas
Hillsborough County: Tampa, Brandon, Riverview, Valrico, Plant City, Apollo Beach, Sun City Center
Pinellas County: St. Petersburg, Clearwater, Largo, Pinellas Park, Dunedin, Tarpon Springs, Seminole
Manatee County: Bradenton, Palmetto, Lakewood Ranch, Ellenton, Holmes Beach
Sarasota County: Sarasota, Venice, North Port, Osprey, Nokomis, Englewood
Pasco County: Wesley Chapel, New Port Richey, Zephyrhills, Dade City, Land O’ Lakes, Hudson
