Solar EnergyA Guide To Understanding Your Electricity Bill

Your electric bill is typically not considered an optional bill to pay. You want electricity? Then you have to pay for it. It’s just one of those bills you can’t avoid and typically don’t look forward to getting, especially when you’ve had the A/C cranking through the hot summer months.

We wanted to take a deeper dive into your bill for Albuquerque residents, so they can understand it better. It can be a little bit confusing to understand each charge and how they pertain to you as a consumer, so we thought it would be good to look at a few key elements.

Blocked Electric Billing

You’re charged per kilowatt-hour in blocked billing in intervals of 450 kWh. A kilowatt-hour is a basic measurement of electricity usage of 1000 kilowatts for 1 hour of use.

Here is a typical breakdown of blocked billing charges:

  • Block 1: 0-450 kWh hours is $0.0779432/kWh
    Block 2: 450-900 kWh hours is $0.1240339/kWh
    Block 3: 900 kWh+ hours is $0.1495326/kWh, depending on where you live

When you have unusual usage, such as having company over or an electric device is left on, you really pay for the extra electricity used. If you’re already out of block 1, you will pay very high rates for this additional usage. But when you go solar, your solar panels will produce energy, so you’ll only pay for what your system didn’t produce, which is usually in block 1—the cheaper rate.

Most things you buy are cheaper by the dozen. If you buy in bulk, the more you should save on your energy bills, right? However, it’s more like buying 2 cars at the dealership and they ask you to pay 30% more on the second car. That’s crazy!

Fuel Cost Adjustment

This portion of the bill shows the actual costs of producing energy: non-renewable or renewable. Non-renewable sources of energy production include coal, oil, and natural gas. Renewable energy, including solar and wind, is currently $0 on the bill, but the cost for this service is recovered through the renewable energy rider, more on that in the next section.

I wanted to point out this portion of the bill because it directly shows the amount of energy being used from the source type, non-renewable energy.

According to the U.S. Energy Information Administration describes non-renewable energy this way: “These energy sources are called nonrenewable because their supplies are limited to the amounts that we can mine or extract from the earth.”

There is a limited supply of the traditional sources of energy we use, however, New Mexico receives an average of 310 sunny days each year! Limited sources of non-renewable energy, but unlimited sunshine in our state.

It must be noted as well, that our state is taking aggressive steps to have 100% renewable energy by 2045.

To give you an idea of what the use of energy is across the U.S., see chart below.

Renewable Energy Rider

What exactly is the renewable energy rider fee you’re paying?

The utility company passes along the fee to create clean sources of energy onto their customers. In a way, you’re already paying for renewable energy to be used in your community, without having the personal benefits of having solar (no more electric bill).

As of February 2020, you’re charged $0.0076413 per kWh of the total usage you used in the billing month.

Once you have solar though, the renewable energy rider is removed from your billing, giving you extra savings.

What Does Your Electricity Bill Look Like After Going Solar?

When a person goes solar, they typically “trade” their electric bill for a solar bill (loan) at a fixed rate. Many times, their monthly solar payment will be less than their average electric bill cost—giving them instant savings! When they stay tied to the grid (which we recommend), then the only charge they have from the utility company is about an $8 fee to stay on the grid. Plus, once you finish paying off your solar loan, you eliminate that bill, with only the grid fee left to pay. WOW, what a savings!

Know Your Usage Anytime

When you go solar, you have an energy production software that is not controlled by the utility company. You have real-time access to it through web-based monitoring, so you can track your production any time you’d like.

When you get your electric bill after you go solar, you can confirm the usage numbers from the utility company with the solar production numbers on your app. You don’t have to take their word for it anymore, and you’re in FULL control of your system. It takes the guessing game out of your bill with 3rd party verification of your usage. It’s very accurate and confirms that your solar system is working properly as well.

If you go over the energy produced by your system, you’ll be billed by the lower billing blocks by the utility company per 450 kWh.

Net Metering – Renewable Energy Credit

“Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a PV system on their roof, it may generate more electricity than the home uses during daylight hours.” –SEIA

This is a wonderful benefit to those who go solar. If you don’t use all the energy your solar system produces, you can “save” it for later use!

Let’s show you an example of Steve Poulin’s bill, co-owner of Poulin Solar Pro. He recently went solar after moving to his new home!

Steve’s solar system produced 1082 kWh. Since his house only needed 1042 kWh, he made 40 kWh more than he needed (as seen in the 40 in parentheses in bill above), as a credit. He is “banking” the extra 40 kWh for later.

In essence, Steve’s meter is SPINNING BACKWARDS! He says he can’t WAIT to see his July bill.

How many of you are waiting to see your July bill?

Final Thoughts

It’s one of the few bills we have little control over. Every house has a cost for electricity, so investing the cost into your own system, plus all the federal and state credit, makes sense from an investment perspective.

Current Tax Incentives

Federal Incentives

  • 26% federal tax credit—expires 12/31/20
  • 22% federal tax credit—valid calendar year of 2021

New Mexico State Incentives

  • 10% state tax credit—valid 3/1/20- 12/31/27
  • $0 State Sales Tax—current rules, subject to change
  • $0 Property Tax—you will still be charged property tax, just not on your solar system.


To learn more about whether going solar is a good option for you,

call us 505-880-2500, or click below to

Schedule a Free Solar Consultation

Click here

Even if you just see what your savings could be,

it is an eye-opening experience!


Poulin Solar Pro, 2021 © All Rights Reserved.
Privacy PolicyCookie PolicyTerms of Service

solar panels albuquerque|solar energy albuquerque|solar installation albuquerque|solar albuquerque|solar panel installation albuquerque|solar power albuquerque|solar panels installers|installation solar|solar system installers|solar panels albuquerque nm|solar power installers|install solar panels on home|solar panels and installation|roof and solar panel installation|solar solar panels|solar panel roof installation|solar panels solar panels|solar power panel installation|solar system installer near me|roof solar|solar power installer near me|solar energy panel installation|solar panel installers near me|solar panels for your roof|solar energy installers near me|roof solar panel|solar panels|solar panel system installation|recommended solar panel installers|solar panel systems near me|solar power system installers near me|residential solar panels near me|panel solar panel|solar for|solar energy system installer|solar installation for home|residential solar installation|the solar panel|adding solar panels|solar panels on house|solar system installation near me|solar panel in|best solar panel installation|pv installation cost|affordable solar panel|solar panel solar|solar installation service|installing solar power in your home|solar pv installer near me|cost of pv panels|solar power home installation|solar panels on roof of house|install solar panels on house|solar power system installation|solar system solar panels|solar panel fitters|solar panel for your home|add solar panels to house|solar panel location on roof|cost of solar pv panels|installation of solar energy|by solar panel|solar power solar|roof solar energy|best way to install solar panels|solar panels on|in roof solar panels|residential solar power|best solar companies in albuquerque nm|solar system roof|solar electric system installer & service provider|solar electricity installation|solar panels north east|solar panel about|with solar panels|a solar panel|residential solar installers near me|business solar panels|cost of solar pv|getting solar panels on roof|adding more panels to solar system|residential solar panel systems|solar power panel|best solar panels for roof|solar jobs albuquerque|using solar power at home|solar panel solar energy|solar panel on home|energy solar panels|on roof solar panels|solar consultation|solar panel fitters near me|energy saving solar panels|energy panels roof|pv panel installation|solar energy solar panels|solar panel for|about solar panel installation|solar panels home use|solar energy panels for homes|solar panel for residential|image solar panels|electricity panels for roof|install own solar panels|solar panel panel|solar panel with|cheap pv solar panels|residential solar reviews|getting started with solar power|solar add|electric solar panel cost|solar cell installation|adding solar panels to home|buying your own solar panels|solar sun panels|energy panels|roof sun panels|solar electricity at home|get solar panels|using solar energy at home|solar panel for home electricity|home solar energy|electric panels on roof|i solar panels|cost of solar power installation|residential solar energy|solar pv panel installation|get paid to install solar panels|solar panel roof requirements|best solar companies in new mexico|solar power solar panels|residential solar panel installation|cost of solar panel installation|solar power for homes cost|solar power panels for homes|residential solar power installation|best place to install solar panels|savings with solar panels|best way to use solar panels|solar panels info|business solar|solar for the house|solar on panels|solar energy in house|best solar panels for house|affordable solar power|solar panels for free|solar power and solar energy|solar installer requirements|solar power at home|affordable solar systems for homes|solar device|solar electric roof panels|adding solar panels to roof|solar panel designs|pv installers near me|benefit of solar panels to your home|solar power report|15 solar panels|best location for solar panels on roof|google solar panels|solar power costs 2019|learn to install solar panel systems|solar panels service|buy solar panels|solar panel electricity bill|the solar power|solar electricity panel|requirement for solar panel installation|solar pv reviews|learn to install solar panels|2019 solar panels|energy in solar panels|solar power system reviews|information on solar panel|solar panel is|solar installation quote|renewable energy installers near me|solar panel installers in my area|get solar power for your home|4 solar panels|to buy solar panels|best roof for solar panels|solar panels 2019|becoming a solar panel installer|solar panel install jobs|apa itu solar panel|percentage of homes with solar panels|solar panels for residential use|solar energy for your home|buy and install solar panels|home solar power system cost|benefits of solar panel installation|buy residential solar panels|cost to solar power your home|solar cell panels|cost of solar panels and installation|solar system installation for home|solar panels for your house|solar panel for house electricity|solar power solar energy|solar pro solar panels|solar powered|cost solar panel|price on solar panels for your home|best solar installation|best solar panels for residential|solar panel on roof cost|solar power system for house|solar prices|solar panel retailers near me|12 solar panels cost|solar powered panels for houses|best way to use solar power at home|a solar panel on the roof of a house|purpose of solar panels|solar power solar power|the purpose of solar panels|buy solar panels near me|free solar installation|no 1 solar panel|solar energy things|solar system panel installation|solar cell solar panel|solar panel new|25 year warranty solar panels|adding solar to home|affordable solar energy|production cost of solar panels|solar panel requirements for home|pv panel|solar panel for home near me|price of photovoltaic panels over time|solar panel installation design|warranty on solar panels|solar panels reviews|benefit of solar panels|solar power is|solar installation notes|solar panel i|solar panel profile|youtube solar panel installation|article about solar panel|solar energy solar power|buying solar panels for your home|add solar to house|information on solar|solar for home electricity|solar panel report|the downside of solar panels|solar energy and solar panels|solar residential systems|advantages of solar panels on roofs|solar system residential cost|solar panel sunpower|benefits of solar panels on house|solar power system installation cost|cost of house solar panels|solar installation warranty|solar pv benefits|solar panels for residential home|get solar power|free home solar panels|solar cell installation cost|pv installers|solar panels location|cost of solar energy installation|power solar system|solar energy cost for home|solar panel shopping|best residential solar power system|news on solar panels|solar power for your home|cost of getting solar panels|solar panel pr|solar power for house cost|solar pv installation|benefits of residential solar panels|solar panel turkey|solar panels today|solar panel installation reviews|home solar panel system cost|solar panels system cost|sunpower system cost|benefits of buying solar panels|best solar panels for residential homes|solar for your home|solar panels albuquerque cost|solar pv installation cost|home solar panels reviews|solarenery|cost of solar panel for home|home roof solar panels|news solar power|30 solar panels cost|best residential solar system|price of solar panels 2019|solar panel fitting video|sun powered|rate of solar panel|solar panel system|solar panel home installation cost|sunpower solar panels price south africa|power solar cell|solar solar power|buy solar power|best place for solar panels|compare solar power systems|putting solar panels on your house|solar panel roof installation cost|solar power cost|downside of solar panels|solar panels for house roof cost|cheap solar panels for home|residential solar energy systems|solar panels not on roof|sun power pv|panel power|solar panel home system|solar panels electricity savings|solar sun solar panels|home solar energy systems|solar panels production|solar power in|solar system for the house|sun energy panels|compare solar panels|pv panel roof|solar panel costs 2019|solar panel notes|the real cost of solar panels|home solar reviews|powered by solar energy|real cost of solar panels|solar pv roof|new solar power|solar panels residential cost|solar panel power system|panel solar energy|sa solar panels|founder of solar panel|cost to add more solar panels|solar pv panel|6 solar panels|pnm renewable energy|solar system for home near me|solar panel 1|news on solar energy|cheap solar power system|cost of solar panels 2019|solar power service|cost of solar power system|solar panels shops near me|save money with solar panels|solar system cost for home|home power solar systems|cost of a solar cell|solar panel installation video|solar system for home electricity|solar installation design|system solar panel|a solar power|in roof pv panels|low cost solar system|solar panel cost by year|1 solar panel|9 solar panels|house of solar|solar power image|solar panel roof design|the solar installation company reviews|install solar panels to reduce the electricity bill|solar cell roof|cost of 1 solar panel|no cost solar panels|solar panels on home worth it|sun panel solar panels|buy solar|solar power for|buy solar pv panels|new solar energy|replacing solar panels|10 solar panels cost|22 solar panels|sunpower solar panels cost|power panel solar|paying for solar panels|8 solar panels|solar panels systems for your home|2 solar panels|solar home installation cost|solar panel cost savings|solar energy solar|solar panel costs over time|downside of solar power|pnm solar|solar power today|recycled solar panels for sale|things to know about solar panels|solar energy pro|residential solar power cost|the benefits of solar panels for homes|use solar panels as roof|3 solar panels|affordable solar panels for home use|solar panel installation quote|things to know about solar energy|solar energy rate|26 solar panels|cost of a solar system for a house|20 solar panels cost|solar installation cost|solar sun power|pros of solar|solar design installation|solar power for a house|sunpower solar power|requirements for solar panels|solar panels in new mexico|own solar panels|solar system on house roof|free solar panels albuquerque|solar system to home|best solar panels for your home|solar cell panel working|solar residential cost|solar pvs|affordable solar power systems|solar panels pros|school with solar panels|solar energy 2018|solar power rate|sun power electric|up solar panel|top solar installers|roof pv|the truth about solar panels|roof and solar panels|roof solar power|solar cost|solar panels cheap|solar power energy|buy solar panel system for home|solar system check|solar panels best deals|power solar energy|pv system installation|home solar project|solar panel plan|solar panels free installation|cost of solar for a home|electricity by solar energy|power from solar panels|solar panels discount|solar panels for buildings|buy solar energy|solar for house cost|sunpower solar energy|10kw pv system|home solar pv system|solar panel sales|solar cell rate|solar panels worth it|tax exemption for solar power|solar panels increase property tax|taxes on solar panels|solar tax|tax incentives for solar panels|