If you’ve spent any time learning about net metering, chances are you’ve come across something called the solar true-up bill — or if not, you probably will at some point. Even so, it’s one of those things that doesn’t get much attention upfront, but can catch you off guard if you’re not prepared for it. And while most homeowners are familiar with their monthly utility bills, the true-up bill works a little differently. So in this article, I’ll explain exactly what it is, how it ties into net metering, and what you can expect.
What is a Solar True Up Bill?
A solar true-up bill is a statement from your utility that sums up all the energy you’ve sent to the grid and taken from the grid over a 12-month billing cycle. Essentially, it settles the difference between what your solar system produced and what your home used over the year.
A typical solar true-up statement includes several important data points:
- The total amount of electricity your system produced
- The total energy your home consumed
- Net energy metering credits earned and used
- Any remaining balance due or credit surplus
- Charges for grid access, delivery, or other fixed fees
If the process sounds a bit confusing — sending energy to the grid, pulling it back, then settling the balance — that’s because it’s not like your typical utility bill. It’s all part of a system called net metering, which is the foundation of how your solar true-up bill works. Net metering is a billing system that credits you for the extra energy your solar panels generate and send to the grid. On sunny days when your system produces more than you use, those extra kilowatt-hours don’t go to waste. Instead, they get banked as energy credits. Then, when your system isn’t producing enough (like at night or during cloudy days), you draw electricity from the grid and use up those credits. Ideally, the goal is to break even. To balance out what you send and what you take. But unless you’ve got a solar setup that perfectly matches your usage patterns, there will likely be some leftover difference. That’s what the true-up bill is for. It calculates all of it, once a year.
When is a Solar True Up Payment Made?
Your true-up payment is due at the end of your solar billing year, which is based on the month your system was activated, not the calendar year.
So, if your solar system went live in April, your true-up bill will arrive the following April.
Can you change your true-up month or payment date?
That depends entirely on your utility provider. I know that some companies, like PG&E, allow you to change it once. There may be others, but it’s always best to check directly with your utility to be sure.
What is the Difference Between My Monthly Bill and My True-Up Statement?
Under a typical electric billing setup, you’re charged each month based on how much energy you used during that billing period. Plain and simple.
But if you’re on an annual true-up schedule, it works a little differently.
Your utility will still send you a billing statement each month, but mainly to show a running tally of your energy credits and debits so you can keep track. You’re allowed to accumulate and spend those credits throughout the solar billing year.
That said, you typically won’t have big charges to pay — just the fixed monthly costs like connection or meter fees and service charge, which often range from $15 to $30 depending on the utility.
Because of that, your bills can feel pretty low most of the year, until the annual true-up arrives with the full reconciliation.
If your system didn’t produce enough, and especially if you’ve been steadily drawing more from the grid than expected, it’s absolutely possible for the final true-up bill to total in the hundreds or even thousands of dollars
So, it’s no surprise that many homeowners are caught off guard by the amount they’re charged with — unless, of course, they’ve been keeping an eye on those monthly statements.
How is a Solar True-Up Bill Calculated?
Calculating a solar true-up bill involves simple addition and subtraction, based on a few core principles:
- If you used more power than your system produced (and burned through all your credits), you’ll owe the utility.
- If you sent more than you used and still have credits, some utilities may pay you a small rate for the surplus — or simply roll it into the next cycle, depending on the program.
Let’s crunch some sample calculations.
Example 1: You Overproduce (You Earn a Credit)
| Month | Energy Used from Grid | Energy Sent to Grid | Net Usage | Credit/Debit |
| January | 600 kWh | 300 kWh | +300 kWh | Owe for 300 |
| February | 500 kWh | 450 kWh | +50 kWh | Owe for 50 |
| March | 400 kWh | 600 kWh | -200 kWh | Earn credit |
| April | 300 kWh | 700 kWh | -400 kWh | Earn credit |
| May | 200 kWh | 800 kWh | -600 kWh | Earn credit |
| June | 250 kWh | 750 kWh | -500 kWh | Earn credit |
| July | 300 kWh | 600 kWh | -300 kWh | Earn credit |
| August | 350 kWh | 500 kWh | -150 kWh | Earn credit |
| September | 400 kWh | 400 kWh | 0 | Break even |
| October | 500 kWh | 300 kWh | +200 kWh | Owe for 200 |
| November | 600 kWh | 250 kWh | +350 kWh | Owe for 350 |
| December | 650 kWh | 200 kWh | +450 kWh | Owe for 450 |
Total Yearly Grid Usage: 5,050 kWh
Total Energy Sent to Grid: 5,850 kWh
Net Energy: -800 kWh
In this example, you’ve produced more than you’ve consumed. You’re likely eligible for a net surplus compensation, although at a lower rate than you’d normally pay for electricity.
Example 2: You Underproduce (You Owe the Utility)
| Month | Energy used from Grid | Energy Sent to Grid | Net Usage | Credit/Debit |
| January | 700 kWh | 300 kWh | +400 kWh | Owe for 400 |
| February | 600 kWh | 250 kWh | +350 kWh | Owe for 350 |
| March | 550 kWh | 400 kWh | +150 kWh | Owe for 150 |
| April | 500 kWh | 450 kWh | +50 kWh | Owe for 50 |
| May | 450 kWh | 500 kWh | -50 kWh | Credit |
| June | 500 kWh | 550 kWh | -50 kWh | Credit |
| July | 600 kWh | 600 kWh | 0 | Break even |
| August | 650 kWh | 550 kWh | +100 kWh | Owe for 100 |
| September | 600 kWh | 450 kWh | +150 kWh | Owe for 150 |
| October | 650 kWh | 400 kWh | +250 kWh | Owe for 250 |
| November | 700 kWh | 350 kWh | +350 kWh | Owe for 350 |
| December | 750 kWh | 350 kWh | +400 kWh | Owe for 400 |
Total Yearly Grid Usage: 7,250 kWh
Total Energy Sent to Grid: 5,150 kWh
Net Energy: +2,100 kWh (deficit)
In this case, your solar system didn’t cover your entire usage over the year. You owe for the net 2,100 kWh at the utility’s current rate — say $0.30 per kWh — that’s $630 due at the time of true-up.
Why Is My True Up Bill So High?
If your true-up bill is so high, the most common reason is that your system didn’t produce as much energy as you consumed.
Other reasons include the following:
- Seasonal changes. Longer winters mean extra need for heating, and scorching summers often lead to extra AC use.
- Increasing household energy use. Maybe you bought an EV, added a pool pump, or had family move in. Or, you might have used energy during expensive peak hours (on time-of-use plans)
- Undersized solar system. This means your system wasn’t sized properly at the beginning.
What Happens If My True Up Bill Is Negative?
If your true up bill is negative, that means your system sent more power to the grid than you pulled. You’ve got a surplus!
And depending on your utility, they may:
- Pay you a small compensation. Most export rates are lower than the retail price of electricity, though, so don’t expect a massive check. Still, this is the best case scenario.
- Roll over the credit to next year
- Keep the excess without paying. This is the worst case scenario. Might seem unfair, but yes, most utilities wipe out any remaining credits after the 12-month cycle.
How to Lower Solar True Up Bill
One should realize that the goal isn’t to eliminate the true-up bill entirely, but to keep it predictable and manageable. Here’s what I recommend:
- Track your monthly statements. Watch how much you’re sending and using, and keep a close tab of it to spot unusual usage patterns or shortfalls early.
- Adjust your usage habits. Run heavy appliances during peak solar hours, and avoid drawing from the grid during peak hours.
- Consider installing a solar battery. If your utility offers limited or unfavorable net metering, a battery lets you keep more of what you generate, instead of sending it back for pennies. That stored energy can lower the amount you owe when your solar true-up bill arrives.
- Regularly monitor your system. Checking your system performance from time to time helps you identify issues early, like drops in production or inverter errors. If your system underperforms and you don’t notice, your true-up bill can climb quickly.
Build the Right Solar Setup, Lower Your True Up Bill
As I mentioned earlier, the best way to keep your solar true-up statement low is to match your solar production with your actual energy use. And that starts with smart planning and a design tailored to your home.
At Avail Solar, we take that seriously — not just in the design stage, but through the installation and maintenance too. Our goal is to make your solar transition easy and hassle-free, so you can go about your day without stressing over the details. Request a quote today!