What Does True-Up On My Electric Bill Mean?

New solar owners may be perplexed by the True-Up Statement. This page aims to answer some of the most common questions that new solar users have.

Homeowners that switch to solar will notice a difference in their utility cost. Your utility will continue to send you monthly statements, but you will not be charged for your electricity usage until the anniversary of the date the utility turned on your solar system. The utility will send you a “True Up Statement” at that point. Your annual utility bill, as well as a description of your net electricity use, will be included in the True-Up Statement.

Background on net metering

All utility customers have a meter that records how much electricity they use and when they use it so the utility can properly bill them. When the sun shines, solar users generate their own energy, transmit any excess energy back to the grid, and normally buy electricity from the utility when the sun isn’t shining. When the sun isn’t shining, you pay the utility for the energy you use from the grid, minus the credit you get for the solar energy you send back to the grid. “Net metering” is the term for this procedure.

What happens when the sun is shining

  • Your solar panels will most likely create more electricity than you require during high solar production months. Your excess energy will be sent back to the grid during those months “It will be saved as a credit that you can use in the future.
  • Your credit is determined at the same amount as the retail rate at which the utility sold your additional energy to your neighbors (retail rate), minus a few cents to cover various utility programs.
  • Yours is an excellent example “The net energy consumption will be negative.

What happens when the sun isn’t shining

  • You will most likely use electricity from the grid during poor solar production months and whenever the sun isn’t shining.
  • During those months, any extra energy credits you previously accrued will be forfeited “The money that has been banked will be used.
  • Yours is an excellent example “The net energy consumption will be positive.

Your month-to-month statement from the utility

You will always be charged monthly for grid usage and connection fees, no matter what. Your net energy usage will also be listed on your monthly statement. It will seem as a credit or a charge. Until True-Up, these charges and credits are carried over.

Your annual True-Up statement

On the anniversary of the date your solar system was turned on, the utility sends you a True-Up statement. For a 12-month period, the True-Up reconciles all of the accumulated energy costs, credits, and compensation.

  • The amount will display on the True-Up statement if a balance is due after all credits and charges have been reconciled.
  • If your system produced more energy than you consumed over the 12-month billing cycle, you will receive a little credit on your True-Up bill, ranging from 2 to 4 cents per kilowatt-hour “The bank account is depleted, and you must begin the annual cycle all over again.
  • ‘The’ “The true-up rate is lower than the rate you get for unused solar energy throughout the year. The utilities lobbied in 2016 to eliminate the True-Up rate. They’re now lobbying to reduce the rate at which your excess energy is paid for the rest of the year, and we’re fighting back.

Consumer tip: Make sure to set aside funds every month for your True-Up bill

Keep in mind that you may need to pay a True-Up, so put some of your solar savings aside for that. You will prevent an unexpected bill this way.

Important Data Points on Your True-Up Bill

The following will be included in your True-Up statement:

  • The amount of electricity generated by your solar system over the course of a year (measured in kilowatt hours, or kWh).
  • How much electricity did you buy from the grid and how much was covered by your net metering credits?
  • The retail electricity rate was utilized to calculate the value of the accumulated credit.
  • The quantity of any remaining solar energy credits, as well as the amount you owe.
  • You must pay the utility company the total amount due.

What is the Difference Between My Monthly Bill and My True-Up Bill?

Consumers frequently inquire why they still receive a monthly utility statement after installing solar and knowing they will receive an annual True-Up charge. The utility’s monthly statements include the minimum monthly due delivery charges. Additionally, the monthly bill provides a snapshot of current and year-to-date charges and credits, allowing homeowners to follow their progress toward the yearly True-Up.

A Learning Curve at True-Up

It’s crucial to spend a few minutes learning the differences between a conventional bill and the statement you’ll get if you go solar, on both a monthly and annual basis. If you still have issues about your bill, contact your local solar installer for more information to ensure you’re comfortable with the paperwork you receive from the utility.

What’s the deal with my exorbitant true-up fees?

True-Up balances can happen for a variety of reasons, most of which can be prevented or at the very least budgeted for.

The first is the expense of being connected to the electrical grid on a yearly basis.

These expenditures and associated fees cannot be avoided, and they will appear on a True-Up statement.

Second, the domestic solar system was not designed to completely offset the homeowner’s energy consumption.

This is due to a number of factors.

One is that a rooftop may not be the best location for solar panels.

Solar installers and designers encounter a variety of issues, including steep inclines, chimneys, vents, and skylights.

Panels cannot be put safely if there are obstructions on the roof. Alternatively, panels are installed in locations with low efficiency rates, implying that they are not producing at full capacity. Another issue is that unethical sellers will undersell a system in order to lower the sticker price and entice inexperienced buyers. The difficulty with this is that purchasers will believe they are purchasing a complete system when, in fact, the system is only designed to offset a small proportion of overall energy consumption, resulting in a hefty True-Up payment.

Third, some people increase their electricity consumption after becoming solar, whether consciously or unwittingly.

An rise in electricity demand could result in a True-Up bill since systems are established based of a baseline energy unit, thinking it was built to offset usage by 100 percent.

Additional family members moving in or keeping the house at a colder temperature while running the A.C. could cause an increase in electricity consumption.

Finally, if a homeowner has a system installed without a suitable baseline energy usage, the system may not be designed to counteract the home’s actual energy demand.

Your solar installation firm will need a good 12-months of energy usage data to truly develop a system that responds to a home’s energy demand.

If the homeowner waits less than 12 months, the homeowner risks incurring a significant True-Up bill due to inaccuracies in the system design.

What does it mean to “true up bill”?

True-ups are annual payments paid by solar customers rather than monthly bills received by ordinary energy users. Credits for the energy returned to the electric grid by a customer’s solar panels are included in true-ups. Many folks are paying double or more this year than they did in 2019.

What is a true-up period, and what does it entail?

When extra kWh is rewarded at the net surplus compensation rate, the True-Up Period regulates how often a customer’s bill credits and charges are reconciled. An Annual True-Up interval is used in most NEM programs.

Is it possible for you to pay your true-up bill on a monthly basis?

PG&E does not presently offer a monthly reconciliation option for these expenses, but you can pay ahead when you receive your monthly statement, which will result in a credit on your account. To avoid a big bill at the end of your True-Up term, PG&E suggests this technique.

What does PG&E’s true up charge entail?

Your annual True-Up statement will be mailed to you as a Private rooftop solar customer at the end of the 12th month of your billing cycle. The True-Up statement reconciles all of the 12-month billing cycle’s accumulated energy charges, credits, and compensation. If you have a balance due after all charges and credits have been reconciled, it will appear on your 12-month billing cycle’s final PG&E bill. Any outstanding credits will be reset to zero before the start of your new 12-month paying cycle, as required by law.

What is the formula for calculating solar True Up?

The difference between the amount of electricity your system generates throughout the month and the amount of electricity PG&E distributes determines your true up costs each year. Your net energy is the difference between the two figures.

What’s the deal with my PGE true up being so high?

When consumption exceeds four times the baseline amount during a billing cycle, the High Usage Surcharge is applied. This High Usage Surcharge, along with your energy costs and credits, is reconciled during your Annual True-Up if you have a Net Energy Meter. The High Usage Surcharge is deposited in a bank account.

Why do I have to pay more for solar panels?

Your home consumes much too much energy. Appliances that are large. You could be wasting a lot more energy than you think if you routinely use a central air conditioner (which requires roughly 2,000 kilowatt hours of power per year), a heat pump, or a clothes washer or dryer.

What is NEM true-up and how does it work?

Your annual True-Up statement will be mailed to you as a private rooftop solar client at the end of the 12th month of your billing cycle. For the whole 12-month billing cycle, the True-Up Statement reconciles all cumulative energy charges, credits, and any compensation. If you have a balance due after all charges and credits have been reconciled, it will appear on your 12 month billing cycle’s last PG&E bill. Any outstanding credits will be reset to zero before the start of your new 12-month paying cycle, as required by law.

Is it worthwhile to invest in solar?

Is solar energy in California worthwhile? Yes, look at how many solar panels are installed on Californian homes! However, you must decide for yourself. Solar energy has a minimal carbon footprint, is clean and reliable, and can provide power even if the grid goes down. It also saves money for any budget. Solar is no longer a pipe dream, whether you’re a homeowner or a renter. It’s possible that this is your future!

Fortunately, we provide experienced solar panel installation services throughout California, including Los Angeles, San Diego, and San Bernardino.

For a free solar energy consultation, contact one of our Solar Energy Specialists now. It’s time to put some money down and see what all the fuss is about with solar power.