Myth or Truth: Does Solar Panel Panel Eliminate Your Electricity Bill? Understand the Minimum Consumption Fee.

In this post, we explain in a simple and direct way why solar energy drastically reduces the bill, but does not eliminate the minimum fee that every consumer needs to pay to remain connected to the electricity grid.

SUSTENTABILIDADEFINANÇAS

Vinicius Harteman Pena

4 min read

So, is that really true?

Published in 12/01/2025

Introduction

Who hasn't heard someone say, "Install solar panels and your electricity bill will drop to zero!"?
The phrase is beautiful, it catches your attention, and it even gives you a little pang of hope—after all, nobody deserves to open their energy bill and get a shock every month.

But is that really true?
Or is it just another one of those myths that circulate around, like "charging your cell phone at night ruins the battery"?

In this article, we're going to put this topic on the table (or on the roof 😄).

First of all: Solar panels are wonderful, BUT…

Solar energy is one of the best ways to save money and avoid the absurd increases in energy rates.
It's clean, renewable, and transforms your roof into a private mini-power plant. It's almost like printing money—only legally.

But there's a catch:
Even if you generate your own energy, you remain connected to the power company.
And that means he's going to pay her something.
But don't worry, we'll get there.

Myth or Truth: Does the solar system eliminate electricity bills?

Let's get straight to the point:

Short answer: MYTH (in most cases).

Even if you produce enough energy to cover all your consumption, you still need to pay the minimum utility fee. It's like a "connection" fee, a fixed amount charged just for being connected to the grid.

So yes:
You can reduce the bill significantly — like 80%, 90%, even 95%.
But to completely zero out, to see that wonderful feeling of R$ 0.00 on the bill... that only happens in very specific cases.

What is the Minimum Fare? The villain of the story (or almost)

The minimum fare is easy to understand:

It's a fee that the distributor charges even if you don't use any of their energy.

It exists because:

  • The network remains available to you.

  • The utility company maintains poles, wiring, and customer service.

  • You may need power from the grid at night or on cloudy days.

  • The infrastructure is in place 24/7.

So, even if your solar panel generates all the energy you need, the utility company charges this minimum fee to keep the "door open."

How much does this minimum fare cost?

This varies depending on the distributor, but it usually falls between:

  • R$30 to R$80 for residential consumers.

Some distributors charge based on "minimum kWh," while others charge a fixed price.
But in practice, there is always a basic value.

So why do they say it resets the account?

Because it's almost zero. — And for many people, that's already almost the same thing.

If someone was paying R$ 400 for electricity and now pays R$ 45, the feeling is that it's "zeroed out".
And in your wallet, the impact is practically the same.

But technically...
It's not zero, it's the minimum required value.

When can the bill get close to zero?

Now let's get to the bright side of the story.
If you install a well-designed solar system, choose the right equipment, and live in a region with good solar incidence (and practically the entire country of Brazil is like that), the cost will be very close to zero.

Here are the scenarios in which this happens:

1️⃣ A well-dimensioned system (neither too big nor too small)

If the professional accurately calculates your consumption and the system generates the exact energy you use in a month, you will practically not pay for any consumption.
Only the minimum fare.

2️⃣ House with good energy efficiency

If your consumption is low, even better.

People who:

  • use LED lamps

  • They have efficient appliances

  • They don't leave devices plugged in unnecessarily

  • They use air conditioning sparingly

… have even smaller minimum bills.

3️⃣ Region with strong solar radiation

The Northeast, Midwest, and Southeast regions are usually the top producers.
In these regions, even smaller systems deliver incredible results.

4️⃣ Well positioned roof

When the roof is at the right slope and preferably facing north, generation naturally increases.
It's free energy arriving in abundance.

5️⃣ Homes that generate more than they consume (accumulated credit)

Sometimes a house produces more energy than it uses.
This "surplus" becomes credit to be used in other months.

Even so, the minimum fare remains.
But the variable part of the calculation easily goes to zero.

And what happens when the bill is NOT low?

Not everything is rosy!
Here are the cases where the bill doesn't decrease as much:

1. Undersized system

If you install a system that is too small, it won't help:
You will remain dependent on the network.

2. Shadow barrier (trees, buildings, antennas)

Shadow is the enemy of solar generation.
Even a small shadow can significantly impact production.

3. House with very high consumption.

Swimming pool, lots of TVs, air conditioners, electric ovens, electric car chargers…
All of this may require a large system, increasing costs.

4. Poor installation or faulty equipment

It may generate less than it should, reducing the economy.

So, is it really worth installing solar energy even if it doesn't eliminate your electricity bill?

Yes. Absolutely!

The economy usually falls between:

  • 70% and 95% in residences

  • 60% and 85% in retail

  • 50% and 90% on farms and ranches

So, even paying that minimum fee, a solar system remains one of the best investments available.

And more:
It protects you from fare increases, which happen practically every year.

Practical example (for better visualization)

Imagine a house that pays R$ 350 for electricity per month.

After solar energy:

  • Generation covers 100% of energy consumed.

  • The bill then goes up to somewhere between R$35 and R$60 (minimum fee).

Savings: up to R$ 315 every month.

In one year:
R$ 3,780 saved.

In 10 years:
R$ 37.800.

And the system lasts 25 years or more.

It's pretty clear why so many people are joining, right?

But ultimately: Is it a myth or a fact that solar panels eliminate electricity bills?

Let's conclude with a simple and honest answer:

👉 Myth (in most cases).

You will ALWAYS pay the minimum fare.

👉 True (in some very specific cases).

Isolated rural consumers, those living off-grid, or those with old and rare contracts can virtually eliminate their electricity bill.

But for 99% of homes connected to the distributor, the answer is:

💚 The account doesn't reach zero, but it gets very, VERY close to it.

And in the end (literally 😄), that's what matters:
Save a lot of money, have more predictability, and use clean and sustainable energy.

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