How to Decipher Your Solar True-up Bill

Solar panels offer so many benefits! In fact, many California homeowners wish they had installed them years earlier. They do have a bit of a learning curve though, and it’s important to know what to plan for to avoid any surprises—like with your true-up bill.

What is a solar energy true up bill and how does solar true-up work? Curious about solar power incentives in Los Angeles, Orange County, Western Riverside County, Western San Bernardino County, or anywhere else in CA? Let’s dig in.

Net Energy Metering (NEM)

With PG&E solar and renewable energy, you are enrolled in the Net Energy Metering (NEM) program to track your home’s energy use and production with a specially programmed meter. This meter is checked monthly and informs the data in your monthly statement.

What Is a Solar True-up Bill?

When you have solar panels, your monthly statements look different from a home reliant on the electric grid:

• Monthly Statement:

Indicates how much electricity your home used versus how much it produced in the last month. This is not a bill.

• Annual True-up Statement:

Sent after your first 12 months and annually thereafter, this is a reconciliation of all your energy production (the electricity your solar panels generated) and use (the electricity you pulled from the grid) for that year, and a bill or refund for the difference. 

Net Surplus Compensation Program

During the summer months when sunlight is plentiful, California homes with properly-sized solar panels will typically produce more electricity than they need, resulting in a credit for the surplus. In darker, colder months, some homes will use more energy than they produce, creating a deficit that is filled by the local power grid.

Oftentimes, the surplus and deficit between summer and winter will more or less cancel each other out. The month-to-month variability is part of why you receive one annual true-up bill.

Reading Your True-up Statement

Your monthly statements tell you how much energy you’re using or producing, but if you aren’t reviewing them, you could be surprised by a hefty annual bill. With a little extra awareness, this can be easily prevented. Let’s review the highlights of a typical true-up statement:

Account Summary Sections

While these headers might not be an exact match for those on your solar true-up statement, they should be close enough to make a useful comparison. With any questions, reach out to your provider!

• Credit Balance (typically from the previous statement)

This is the amount credited to your account after your previous monthly statement.

• Electric Monthly Charges

The fee for the grid electricity your home used since your previous statement.

• Total NEM Charges

These are the total charges for grid electricity to your account since your last billing cycle, minus the credits you’ve accumulated through your solar panels.

• Total Amount Due

This is the amount due to your utility provider on the pay by date. It includes taxes and fees.

If any of these numbers are negative, it is a credit to your account and not something you owe. A positive number, however, indicates that payment is owed. If you have any lingering questions or concerns about your monthly statements or annual true-up bill, we recommend reaching out to your utility provider.

Looking to Lower Your True-up Statement?

Solar panels installed within the last 5-10 years are typically well-suited to your home’s needs, unless you’ve made any major changes in your energy consumption. While there is no average true-up bill, your monthly statements should be relatively consistent without any major unexplained changes.

For example, it’s common for California homeowners to have a pool, but if you’ve put in a pool since your solar panels were installed, you could be creating a major deficit in your energy production with your new pool heater or filter.

Wondering why your true-up bill is so high? Eager to learn how to lower your true-up bill? Unsure if your home’s solar panel system is the correct size for your electricity needs? As trusted solar contractors, we are here to help you correctly access the needs of your home and help you take full advantage of solar panel incentives in Los Angeles and throughout the state of California.

With an energy assessment, we can build a comprehensive profile of your home, project your energy savings, and more, empowering you to make the best decision for your home.

Ready to feel confident about your home’s energy use? Schedule an energy assessment with the Greencat pros! Call 323-208-9071 or contact us online today.