A solar quote that promises to “eliminate your electric bill” skips a line on that bill. Almost every utility charges a fixed monthly amount that has nothing to do with how many kilowatt-hours (kWh) you use. Solar panels reduce the kWh you buy. They do not touch the fixed part.
The Short Answer
Maximum monthly savings from solar = your bill − the charges that do not depend on kWh
Three kinds of charges sit outside solar’s reach:
| Type | How it works | Does solar reduce it? |
|---|---|---|
| Fixed monthly charge (customer, service or basic charge) | Added to every bill | No |
| Minimum bill | A floor under your total bill | No. It can raise a solar customer’s bill |
| Solar-specific fee | Charged only to customers with solar | No. It exists because you have solar |
2026 Examples From Seven Utilities
| Utility (state) | Charge | Amount | Type |
|---|---|---|---|
| Alabama Power (AL) | Capacity reservation charge, Rate Rider RGB | $5.41 per kW of solar per month | Solar-specific |
| Idaho Power (ID) | Service charge, Schedule 6 (on-site generation) | $15.00 a month | Fixed |
| Dominion Energy (SC) | Minimum bill, Solar Choice rider | $13.50 a month | Minimum bill |
| Ameren Missouri (MO) | Residential customer charge | $9.00 a month | Fixed |
| Georgia Power (GA) | Metering charge, RNR-11 tariff, single-phase | $5.97 a month | Solar-specific |
| Dominion Energy (VA) | Administrative fee, new net metering customers | $1.00 a month | Solar-specific |
| Duke Energy (NC) | Minimum bill, Residential Solar Choice | $22 (Duke Energy Carolinas), $28 (Duke Energy Progress) | Minimum bill |
Figures come from each utility’s tariff or a commission release, with two exceptions. The Virginia fee comes from a summary of an April 2026 commission order. The North Carolina amounts are those described in a March 2023 commission order, and we could not check the current rider sheets. Each figure applies to that utility only, not to its state.
How Each Type Affects You
Fixed monthly charges
Every customer pays these, solar or not. They set the lowest bill a solar home can reach. With Idaho Power’s $15.00 service charge, a home that buys no net energy still pays $180 a year.
Minimum bills
A minimum bill works differently. If your usage charges for the month are below the minimum, you pay the minimum.
Formula: bill = the larger of (your normal charges) or (the minimum bill)
Most households never notice a minimum bill because their usage charges are well above it. Solar customers are the ones who reach it. In a sunny month where your charges would have been $6, a $13.50 minimum means you pay $13.50.
Solar-specific fees
The largest example in our sample is Alabama Power’s capacity reservation charge of $5.41 per kW of installed solar capacity each month.
| System size | Monthly charge | Annual charge |
|---|---|---|
| 6 kW | 6 × $5.41 = $32.46 | $389.52 |
| 7.2 kW | 7.2 × $5.41 = $38.95 | $467.42 |
| 10 kW | 10 × $5.41 = $54.10 | $649.20 |
The charge grows with system size and is owed whether or not the system exports anything. A larger system produces more savings per month but also a larger fee, so the fee belongs in the sizing decision.
Why a Higher Fixed Charge Cuts Solar Savings
Utilities sometimes raise the fixed charge and lower the per-kWh rate so that an average customer’s bill stays the same. For a home without solar, nothing changes. For a home with solar, savings fall, because each kWh the panels offset is now worth less.
Here is an illustration. The figures are invented to show the effect. They are not any utility’s rates.
A home uses 1,000 kWh a month. Its solar system offsets 800 kWh.
| Rate design A | Rate design B | |
|---|---|---|
| Fixed charge | $15 | $30 |
| Energy rate | 14.5¢/kWh | 13.0¢/kWh |
| Bill without solar | $15 + 1,000 × 14.5¢ = $160.00 | $30 + 1,000 × 13.0¢ = $160.00 |
| Solar savings | 800 × 14.5¢ = $116.00 | 800 × 13.0¢ = $104.00 |
| Bill with solar | $44.00 | $56.00 |
The bill without solar is $160.00 either way. Solar savings drop by $12.00 a month, or 10.3% ($12 ÷ $116). Over a year that is $144.
This is why rate cases that propose a higher fixed charge matter to solar owners even when the headline says bills are unchanged. It is also why a payback estimate made today can change later: you cannot lock in your utility’s rate design.
How to Find These Charges
- On your bill: look for “customer charge,” “service charge,” “basic charge” or “facilities charge.” Our guide to reading your electric bill shows where they sit.
- In the tariff: find your residential rate schedule and any net metering or net billing rider. Minimum bills and solar fees are listed there.
- Ask your installer which fixed charges, minimum bills and solar fees the savings estimate includes. If the answer is none, the estimate is too high.
- Check pending rate cases. A proposed change to the fixed charge is worth knowing before you sign.
Putting It Into a Payback Estimate
Subtract these charges before you calculate savings:
First-year savings = (kWh used at home × energy rate) + (kWh exported × export credit) − (solar-specific fees × 12)
Then check the result against the minimum bill for low-usage months. The fixed charge does not appear in the formula because you pay it with or without solar. It only caps how low your bill can go.
Our solar payback guide walks through the rest, and the export credit comparison covers the other half of a solar tariff.
Limitations
- The seven utilities are examples we could document, not a survey. Many utilities have different or no solar-specific fees.
- Charges change in rate cases. Figures were checked on October 7, 2026 against sources we had already read. Confirm current amounts in your utility’s tariff.
- The rate design illustration uses invented figures.
- Taxes and riders are left out of the examples.
- This is general information, not financial advice.
Sources
- Alabama Power, Rate Rider RGB
- Idaho Power, Schedule 6: Residential Service On-Site Generation
- Dominion Energy South Carolina, Solar Choice rider to Residential Rate 5, effective July 2026
- Missouri PSC, “PSC Approves Agreement in Ameren Missouri Electric Rate Case,” April 23, 2025
- Georgia Power, RNR-11 tariff
- Virtue Solar, “Net Metering Protected: SCC Rules on Dominion NEM 2.0 in VA,” May 5, 2026
- NCUC, Order Approving Revised Net Metering Tariffs, Docket E-100, Sub 180
Frequently asked questions
Can solar panels eliminate my electric bill?
Usually not. Most utilities bill a fixed monthly charge that applies regardless of usage, and some set a minimum bill or a fee for solar customers. Solar can reduce the per-kWh charges, but those fixed amounts remain.
What is the difference between a fixed charge and a minimum bill?
A fixed charge is added to every bill on top of usage charges. A minimum bill is a floor: if your total charges fall below it, you pay the minimum. A minimum bill only affects customers whose usage charges are very low, which can include solar customers.
Do solar customers pay extra fees?
Some do. Alabama Power bills $5.41 per kW of installed solar each month. Georgia Power lists a $5.97 monthly metering charge under its solar tariff. Dominion Energy Virginia adds a $1 monthly fee for new net metering customers. Many utilities charge nothing extra.
How do fixed charges affect solar payback?
They lower the savings solar can produce. When a utility raises its fixed charge and lowers its per-kWh rate to collect the same revenue, each solar kWh offsets less, so payback takes longer even though a non-solar bill stays the same.
