--- description: Solar Energy Vs. Electric Utility: Solar is economical with a high initial investment but utility costs change with fuel costs and demand. title: Solar Energy Vs. Electric Utility: Which is Better? - Energy Theory image: https://energytheory.com/wp-content/uploads/2024/04/Solar-Energy-VS.-Electric-Utility-Which-is-Better-For-You.png --- [ Close Menu ](#) * [About](https://energytheory.com/about-us/) * [EV](https://energytheory.com/category/electric-vehicles/) * [FAQs](https://energytheory.com/category/faqs/) * [Glossary](https://energytheory.com/category/glossary/) * [Green](https://energytheory.com/category/green/) * [Renewable](https://energytheory.com/category/renewable/) * [Sustainable](https://energytheory.com/category/sustainable/) * [Energy Economy](https://energytheory.com/category/energy-economy/) * [Energy Services](https://energytheory.com/category/energy-services/) * [Solar](https://energytheory.com/category/solar/) * [Sustainable](https://energytheory.com/category/sustainable/) * [News](https://energytheory.com/category/latest-news/) * [Language](#) [ ![Energy Theory](https://energytheory.com/wp-content/uploads/2022/11/2e3rtgthghnm.png) ](https://energytheory.com/ "Energy Theory") ![en](https://cdn.gtranslate.net/flags/svg/en.svg)English [![es](https://cdn.gtranslate.net/flags/svg/es.svg) Spanish](#) [![fr](https://cdn.gtranslate.net/flags/svg/fr.svg) French](#) [![en](https://cdn.gtranslate.net/flags/svg/en.svg) English](#) [![it](https://cdn.gtranslate.net/flags/svg/it.svg) Italian](#) [![zh-CN](https://cdn.gtranslate.net/flags/svg/zh-CN.svg) Chinese (Simplified)](#) [![nl](https://cdn.gtranslate.net/flags/svg/nl.svg) Dutch](#) [![fi](https://cdn.gtranslate.net/flags/svg/fi.svg) Finnish](#) [![de](https://cdn.gtranslate.net/flags/svg/de.svg) German](#) [![hi](https://cdn.gtranslate.net/flags/svg/hi.svg) Hindi](#) [![ja](https://cdn.gtranslate.net/flags/svg/ja.svg) Japanese](#) [![pl](https://cdn.gtranslate.net/flags/svg/pl.svg) Polish](#) [![pt](https://cdn.gtranslate.net/flags/svg/pt.svg) Portuguese](#) [![ru](https://cdn.gtranslate.net/flags/svg/ru.svg) Russian](#) [ ![Energy Theory](https://energytheory.com/wp-content/uploads/2022/11/2e3rtgthghnm.png) ](https://energytheory.com/ "Energy Theory") ![en](https://cdn.gtranslate.net/flags/svg/en.svg)English [![es](https://cdn.gtranslate.net/flags/svg/es.svg) Spanish](#) [![fr](https://cdn.gtranslate.net/flags/svg/fr.svg) French](#) [![en](https://cdn.gtranslate.net/flags/svg/en.svg) English](#) [![it](https://cdn.gtranslate.net/flags/svg/it.svg) Italian](#) [![zh-CN](https://cdn.gtranslate.net/flags/svg/zh-CN.svg) Chinese (Simplified)](#) [![nl](https://cdn.gtranslate.net/flags/svg/nl.svg) Dutch](#) [![fi](https://cdn.gtranslate.net/flags/svg/fi.svg) Finnish](#) [![de](https://cdn.gtranslate.net/flags/svg/de.svg) German](#) [![hi](https://cdn.gtranslate.net/flags/svg/hi.svg) Hindi](#) [![ja](https://cdn.gtranslate.net/flags/svg/ja.svg) Japanese](#) [![pl](https://cdn.gtranslate.net/flags/svg/pl.svg) Polish](#) [![pt](https://cdn.gtranslate.net/flags/svg/pt.svg) Portuguese](#) [![ru](https://cdn.gtranslate.net/flags/svg/ru.svg) Russian](#) [Reviews & Comparison](https://energytheory.com/category/review/) # Solar Energy Vs. Electric Utility: Which is Better? Solar power provides a clean source of energy whereas traditional electric utility is extracted from fossil fuels which emits greenhouse gases. By [Olivia Bolt](https://energytheory.com/author/olivia%5Fbolt/)April 4, 20244 Mins Read ![Solar Energy VS. Electric Utility Which is Better For You](https://energytheory.com/wp-content/uploads/2024/04/Solar-Energy-VS.-Electric-Utility-Which-is-Better-For-You.png "Solar Energy Vs. Electric Utility: Which is Better?") As the electric needs are increasing day by day, the shift towards sustainable options is also growing. As we have already been using traditional power for ages the debate arises about solar energy vs electric utility. Today, let us dive into the comparisons and limitations of both power sources. ## **Solar Energy Vs. Utility Electric** One major difference is that solar power provides a clean source of energy whereas electric utility is extracted from fossil fuels which emits GHGs. The table below compares the **pros of solar power vs electricity**: | **Solar Energy** | **Utility Electricity** | | ---------------------------------------------------------------------------------- | ----------------------------------------------------- | | Clean source of energy does not emit GHG and does not require water for production | Usually available without any installation or setup | | Once invested, it will be a long-term saving and reduce power bills | Predictable and steady costs | | Some utilities provide selling excess electricity back to the grid | Reliable, electricity outrages are very rare. | | We can scale up and down as per our needs | Highly scalable as it is produced in large amounts | | It can be stored when there is no Sun exposure | Continuously available despite the weather conditions | Also, check out [What Questions to Ask about Solar Energy before Getting Panels?](https://energytheory.com/what-questions-to-ask-before-getting-solar-panels/) The below table shows us the **cons of both solar and electric** **utility**: | **Solar Energy** | **Electric Utility** | | ------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | | The energy savings depend on the intensity of the sunlight and geographical locations | When the fuel price increases, the cost of power also rises up | | Other factors that influence cost-effectiveness are daylight hours, cloudy days, and weather conditions | Natural disasters or drastic weather can cause a power outage | | For a macro solar setup, the initial installation price is high | In some places, the grid may have high prices | | Solar panels at the production stage might have some environmental impacts | Conventional power plants produce electricity through the combustion of fossil fuels which causes pollution | With solar, one can depend on its power if the grid goes down. Globally, governments are encouraging by giving cash incentives and tax credits for solar power setups. One can sell back the excessive power generated to the grids. So **investing in solar panels would be an investment** for future power savings. On the other hand, traditional electric utility emits greenhouse gases. The power plants need land and huge amounts of water for the cooling process which is impacting natural resources. For residential purposes, **power is channeled from grids due to fuel scarcity which raises the prices.** **Also See:** [17 Best Electric Company in Arlington TX](https://energytheory.com/best-electric-company-in-arlington-tx/) ### **Solar Vs. Electricity Cost** Note that solar is economical with a high initial investment but utility costs change with fuel costs and demand. #### **Electric Utility** The cost of electricity on average is approximately [13.72 cents/ kilowatt](https://www.eia.gov/todayinenergy/detail.php?id=51438) in 2021\. Let us say, the **monthly bill is $137 per month**. As per the US Energy Information Administration, the [annual cost on average](https://www.sunsolarelectric.org/blog/157-solar-power-cost-vs-regular-electricity-cost) for April 2018 was: * Residential: 12.89 cents/kWh * Commercial: 10.44 cents/kWh * Transportation: 9.53 cents/kWh * Industrial: 6.58 cents/kWh * Other sectors: 10.23 cents/kWh As the latest observation **electricity prices have increased by 4.3% in 2021**. These costs are not constant, they change depending on the abundance of resources. #### **Solar Power** The monthly savings when a solar power system is installed under no shading condition would be approximately $83\. As per the National Renewable Energy Laboratory, the average household in the US when installing a **5 kWh system costs approximately $2.80/DC watt** excluding tax and fees. As the prices of solar modules drop, demand for this source increases. Compared to 2007 to 2014, **prices of modules on average are down by 78%** from approximately $3.25 /watt to $0.72/watt. When talking about solar vs electricity cost, **solar is cheaper**. The initial investment is slightly higher but, solar is a feasible option when paired up with government incentives and technological advancements. When it comes to the debate of solar energy vs electric utility, they have their own set of advantages and disadvantages. Utility electricity is highly reliable and expandable but the price ranges are subject to fuel prices. On the other hand, solar energy shows a positive environmental impact and has good saving options, however, it depends on geographical conditions. For more such review guides, keep exploring our blog posts. **Recommended:** [Difference Between Solar Energy and Wind Energy](https://energytheory.com/difference-between-solar-energy-and-wind-energy/) Share. 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She takes part in environmental conservation by recycling and avoiding single-use plastic. #### Related Posts [![Ultrastable and efficient Dion-Jacobson perovskite solar cells](https://energytheory.com/wp-content/uploads/2024/08/Ultrastable-2D-Dion-Jacobson-Perovskites-Achieves-19.11-Efficiency-300x200.png "Ultrastable 2D Dion-Jacobson Perovskites Achieves 19.11% Efficiency")](https://energytheory.com/ultrastable-2d-dion-jacobson-perovskites-achieves-19-11-efficiency/ "Ultrastable 2D Dion-Jacobson Perovskites Achieves 19.11% Efficiency") #### [Ultrastable 2D Dion-Jacobson Perovskites Achieves 19.11% Efficiency](https://energytheory.com/ultrastable-2d-dion-jacobson-perovskites-achieves-19-11-efficiency/) August 13, 2024 [![Solar Panels Vs Solar Shingles Major Differences & Comparisons](https://energytheory.com/wp-content/uploads/2024/08/Solar-Panels-Vs-Solar-Shingles-300x200.png "Solar Panels Vs Solar Shingles: Major Differences & Comparisons")](https://energytheory.com/solar-panels-vs-solar-shingles-major-differences-comparisons/ "Solar Panels Vs Solar Shingles: Major Differences & Comparisons") #### [Solar Panels Vs Solar Shingles: Major Differences & Comparisons](https://energytheory.com/solar-panels-vs-solar-shingles-major-differences-comparisons/) August 5, 2024 [![](https://energytheory.com/wp-content/uploads/2024/06/impact-of-coal-to-gas-policy-in-China-300x200.png "Impact of Coal-to-Gas Policy on Air Quality in Beijing, China")](https://energytheory.com/impact-of-coal-to-gas-policy-on-air-quality-in-beijing-china/ "Impact of Coal-to-Gas Policy on Air Quality in Beijing, China") #### [Impact of Coal-to-Gas Policy on Air Quality in Beijing, China](https://energytheory.com/impact-of-coal-to-gas-policy-on-air-quality-in-beijing-china/) June 10, 2024 [Add A Comment ](#) Leave A Reply [Cancel Reply](https://energytheory.com/solar-energy-vs-electric-utility-which-is-better/#respond) Save my name, email, and website in this browser for the next time I comment. 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