## How Much Can I Reduce By Electricity Bill With Solar?

The introduction of net-metering has enabled solar to dramatically reduce electricity bills for residential and business customers across the world.

Below, we calculate how much a monthly electricity bill can be reduced using a net-metering solar system.

- For this example, we take a 10 kilowatt system.
- We assume that there are a total of 4.5 peak hours of sunlight each day.
- This system will therefore generate 45 kilowatt-hours of power each day.
- We assume that the cost of electricity per unit (kilowatt-hour) is 14.38 PKR, plus 17% GST, which equates to 16.82 PKR.
- In a 30-day month, that equates to 22,707 PKR of power generated from solar panels and either consumed on-site or sold back to the electricity company. The electricity bill would reduce by an equivalent amount.

**Note:** With the addition of fuel cost adjustments, the actual cost of electricity tends to be higher than the 14.38 PKR (before GST) mentioned. As a result, the monthly savings can be even higher.