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Why is my electric bill so high if I have solar panels?
Originally published December 20, 2024 · Updated September 2026
If your monthly electric bill or your True-Up bill is still high or keeps increasing even though you have solar panels, there are several possible reasons. Your solar system may not be producing properly, your electricity use may have increased, you may be using more power during expensive evening hours, or your utility rates and fixed charges may have gone up.
Here’s how to figure out what is happening. These steps apply to solar customers throughout California, including PG&E, Southern California Edison (SCE), and SDG&E customers.
1. Are my solar panels producing enough electricity?
Log into your online solar and/or battery monitoring app and check to see that they are working as you expect. Here are some tips on how to monitor your solar panels.
- If your panels and/or battery are working fine, then move on to steps #2 and #3 below.
- If it looks like the panels or battery are not working correctly: contact your solar company right away. If your solar company went out of business, here are steps you can take.
Most solar systems installed in the last 5-8 years come with an online portal that you can log into and see how much energy your solar panels are producing. Information to access this monitoring portal is usually provided by your solar company, so contact them if you need help figuring this out. If you have an older system without this feature, then your solar company might need to help you determine if your panels are working properly.
2. Am I using more electricity than I used to?
If you are running electric appliances more often, or have added electric appliances recently, this could be the main reason for a higher bill.
Here are the steps to figure out if your electricity use has increased, and this is a downloadable spreadsheet that can help you make these calculations:
A. Pick two date ranges to compare. Example: compare 7/1/23 to 6/30/24 with 7/1/24 to 6/30/25.
B. For each date range:
- Use your solar monitoring app to download the total electricity that your solar panels made (total production).
- Look at your monthly utility bills to get two numbers:
—> The amount of electricity you bought (grid consumption).
—> The amount of electricity you sent to the grid (solar exports).
- Subtract your solar exports from your total solar production. This number is the solar energy you consumed at your home (self-consumption).
- Add your self-consumption to your grid consumption. This is the total consumption.
C. Compare your total consumption between the two date ranges to see if your electricity use increased.
Your utility doesn’t measure how much of your solar energy you consume at home. They only measure how much excess solar you send to the grid, and how much of their energy you buy from the grid. We think this is good, because it is none of the utility’s business what you do behind your electrical meter. But it does make it a little harder for you to measure your electricity consumption. Companies like Emporia sell products that allow you to monitor your home consumption easily. You can decide for yourself if that’s worth the expense.
3. Has my 20-year net metering protection expired?
If you got solar before April 2023, then you are on a net energy metering plan, also known as NEM or net metering.
Under NEM, you get credited for the extra solar energy you share with your neighbors. The credit is roughly equivalent to whatever the utility’s rate is at the time you made your solar.
If you are on NEM, the State of California guarantees you can stay on your NEM plan for 20 years from the date the utility turned on your system.
However, after your twenty year protection is up, you will be moved to the Solar Billing Plan, also called NEM3 or NBT. At that time, the credit for your extra solar energy will be reduced by more than 80% or more. So your extra solar energy will not offset your evening electricity use as much and your bill will go up.
If you got your solar on or before 2006, this may be a reason why your bill is going up.
4. Am I using too much electricity during peak hours?
Most solar owners are required to be on a Time of Use (TOU) plan in which rates are higher in the evening, and cheaper in the middle of the day and late at night.
That means if you have recently started using more electricity roughly between 4pm and 9pm (this varies by utility), your bill might increase. That’s even if your overall electricity use has not changed much.
For example, let’s say you have an electric car that you used to charge after 9pm. If you, for whatever reason, began charging your car at 4pm, that could cause your electricity bill to increase by a lot.
You can lower your bill by avoiding using lots of electricity during those evening hours.
Not everyone can do that, however, which is why we dislike mandatory Time of Use. If that’s your situation, then it’s possible a battery could be a solution for you. Tips for buying a battery.
5. Have my utility fixed charges increased?
Starting in 2026, most customers of PG&E, Edison, and SDG&E will pay a new $24/month “base service charge”, regardless of how little energy you buy from the grid. Customers of municipal utilities such as SMUD have already been paying similar monthly charges.
We call these charges utility taxes, and they will increase your bill even if your solar is working fine and you are not using more electricity. We are opposed to high utility taxes, have fought them, and will continue to fight them.
Bottom line: so long as your panels are working, you are likely saving money
Your electricity bill would likely be much higher without your solar system, but we know that it is still frustrating to see your electricity bill increase. The most important thing is to ensure your system is working correctly. The next step is to reduce your electricity consumption if you can.
