What Is a Solar PV System and How Does It Save on Energy Bills?

Photovoltaic modules represent the visible face of a solar energy setup, yet they require integration with additional elements to effectively power your building. While solar panels produce voltage and current in sunlight, they function as direct current (DC) sources akin to batteries. To harness electricity from PV modules for residential and commercial purposes, their output needs conversion into alternating current (AC) through an inverter.

How a Solar PV System Reduces Your Power Bill

There are two primary ways solar panels can trim your monthly energy expenses:

They produce electricity for your devices, offsetting your overall consumption and reducing your utility bills.

Depending on local regulations, excess solar energy can be sold back to the local utility company, earning you credits on your power bill. This option is particularly useful when your solar panels generate more electricity than you can use, such as on weekends or if your business operates only on weekdays.
In New York City, solar panels offer an additional benefit by helping you avoid penalties for exceeding emission limits set by Local Law 97 of 2019. This law imposes fines for surpassing annual CO2-equivalent emissions limits for buildings. By using onsite solar power, you can eliminate these penalties. For instance, a commercial PV array generating 300,000 kWh/year could reduce building emissions by 86.7 metric tons of CO2-equivalent annually, resulting in savings exceeding $23,200 in emission penalties.

Moreover, when paired with heat pump systems, solar panels contribute to further savings by reducing reliance on fossil fuels like natural gas or propane. Since heat pumps operate solely on electricity, they can utilize the output of an onsite solar array. This integration can replace traditional combustion-based heating systems for space heating and hot water, offering both environmental and financial benefits.