The True-Up Statement can sometimes be confusing to new solar owners. This article is intended to help answer common questions many new solar users have.
What is the True-Up Statement?
After you go solar, you will see some changes to your utility bill. You will continue to get a monthly statement from your utility. In addition, you will also receive a “True-Up Statement” from the utility on the anniversary of the date the utility switched on your solar system. The “True Up” Statement includes a summary of your net electricity use over the previous 12-month period, and either a credit or a balance to pay.
How your solar system works
The electricity that your solar panels make goes directly to power the appliances in your home.
Sometimes your home uses more electricity than your panels make. When that happens, you pull electricity from the grid.
Sometimes your panels make more electricity than your home needs. When that happens, that extra solar energy flows to your neighbors.
Solar users who have a battery do not send much extra energy to their neighbors. Instead, most of your extra solar will go into the battery to use later when the sun isn’t shining.
What happens when you send your extra solar to your neighbors
- Whenever you share your extra solar with your neighbor, the utility gives you a credit on your account.
- These credits are “banked” and applied against any charges you incur from the utility.
- The credit you get for that extra solar energy depends on your utility and when you got solar.
- Customers of PG&E, SDG&E, and Edison who got solar before April 2023 get a credit roughly equal to the utility’s electricity rate.
- However, those who went solar after April 2023 will see a much smaller credit.
- This may be different for customers of local publicly run utilities.
When your home uses more electricity than your panels make
- During less sunny times of year, and anytime the sun isn’t shining, you likely consume some electricity from the grid.
- When that happens, the utility will charge you for that electricity. The utility will apply any credits you have from the excess solar you shared, which will reduce how much you owe the utility.
What this looks like on your monthly utility statement
Your monthly utility statement will include the following:
- Monthly charges for grid usage and connection fees.
- The amount of energy you pulled from the grid and how much that cost.
- The amount of energy you shared with your neighbors and how much you got credited for it.
- Whether you owe the utility any money, or if the utility owes you a credit.
- All credits are rolled over to the following month and applied to any future charges.
Most solar owners who got their solar before April 2023 (NEM1 and NEM2) can defer paying any balance until True-Up. Our advice: don’t wait until True-Up. Just pay anything you owe every month.
Those who got solar after April 2023 (Solar Billing Plan) must pay any balance monthly.
What this looks like on your annual True-Up statement
The True-Up statement is what the utility sends solar users on the anniversary of the date your solar system turned on. It summarizes all of your credit and charges over that 12-month period.
- If you pulled more electricity from the grid than your panels made, then you will owe the utility money.
- If the opposite is true, you will receive a small credit on your True-Up bill. The credit will be between 2 to 4 cents per kilowatt-hour for any leftover energy.
- At True-Up, all of your credits are cashed out and you start over again. No credits roll over to the following year.
What is the Difference Between My Monthly Bill and My True-Up Statement?
The monthly bill allows you to stay on top of your solar panels and your electricity use throughout the year. The True-Up statement is useful for looking at the big picture.
Contact our Help Desk with any questions!
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