In the wonderful world of solar energy, a true-up payment is one of the many ways in which you can be compensated for producing emission-free power on your roof or property and sharing it with the utility.
Applicable to those with grid-tied solar panels, in this article, we will define solar true-up payments, break down how they work, and outline everything you need to know and expect when collecting your first solar true-up payment.
PG&E’s True Up bill can come as an unwelcome surprise to solar customers in California. This annual bill reconciles your energy usage and solar production for the previous 12 months Depending on how much energy you produced versus consumed, you may end up owing PG&E money Here’s what to know about paying your True Up bill
What is the True Up Bill?
PG&E’s True Up bill is an annual statement sent to solar customers enrolled in net energy metering (NEM) programs It compares
- The amount of energy your solar panels exported to the grid
- The amount of energy you pulled from the grid
If you exported more than you imported PG&E will credit your account. But if you consumed more than you produced, you’ll be billed for the net usage.
The True Up period runs from your prior year’s True Up bill date to your current bill date. It covers 12 months of energy use.
When Will I Get My True Up Bill?
True Up bills are sent annually, around the same date each year. Check your prior year’s statement for your individual True Up date.
For example, if you got your 2021 True Up bill on March 15th, you can expect your 2022 bill around March 15th. Mark your calendar so the bill doesn’t surprise you.
How is the True Up Amount Calculated?
PG&E calculates your True Up as follows:
Total energy imported from PG&E grid
- Total energy exported to grid from your solar
= Net usage amount
If your exports exceeded imports, you’ll get a credit. If imports exceeded exports, you get a bill for the net usage.
Usage is calculated at the applicable retail electric rate. Exports are valued at the wholesale rate.
Can I Pay My True Up Bill in Advance?
Yes, you can prepay your True Up bill before the statement even generates. This avoids getting hit with a large bill all at once.
Log into your PG&E account online or use the mobile app. Go to Billing > Payment Options. Select Pay As You Go and enter the amount you want to prepay.
PG&E will draw from this prepayment to cover your True Up charges when the bill generates. Any unused portion gets credited back to your account.
What if I Can’t Afford to Pay the Full Balance?
First, understand why your True Up bill is higher than expected. Increased usage, installing EV charging, or changing rates can all impact your balance.
If you can’t pay in full, call PG&E to set up a payment plan. They’ll break the balance into smaller installments over several months. Make sure to pay these payments on time to avoid collections.
Are There Payment Assistance Options?
If your household income qualifies, PG&E offers payment assistance programs such as:
- CARE: Offers 30-35% discount on energy bills for low income households
- FERA: Provides 18% discount for households slightly above CARE limits
- RELIEF: Grants debt relief for CARE/FERA customers with past due balances
Enrolling reduces your energy rates, lowering True Up bills. You can apply online or by phone.
Can I Dispute My True Up Charges?
Definitely reach out to PG&E if you believe your True Up charges are inaccurate. Provide details on why you think the calculation is wrong.
PG&E will investigate usage data from your smart meter. If they find the bill is incorrect, they’ll adjust the amount owed and reissue a statement.
How Do I Avoid High True Up Bills?
To keep your True Up bill low in future years:
- Track your usage vs. production monthly to catch any usage spikes
- Shift discretionary usage to daytime when solar is producing
- Consider adding battery storage to capture excess daytime solar
- Size your system to cover 100% or more of your annual usage
- Ensure your system is producing optimally and not underperforming
With some planning and adjustments, you can take control of your annual True Up bill! Monitor your usage, make payments on time, and leverage payment assistance programs if eligible.
Solar True-Up Payment Definition
By definition, a solar true-up is the annual payment that an energy utility will send a solar producer for the accumulation of credits not yet redeemed on monthly bills. Whereas the precise details of how specific utility solar programs work vary across the country, most true-up payments follow generally the same structure, format, and procedures. In some areas, true-up payments may not exist when bill credits are allowed to roll over indefinitely.
How is a solar true-up calculated?
Unlike monthly net metering credits, the excess electricity credits redeemed in a solar true-up payment are typically calculated using “avoided cost rates.” According to the Solar Rights Alliance, this will typically translate to two to four cents per kilowatt hour, which is significantly lower than average US retail electricity prices (roughly $0.17 per kilowatt at the end of 2023).
How to Understand My PG&E True Up
FAQ
Can you make payments on your true up bill?
PG PG&E recommends this practice to avoid a large bill at the end of your True-Up period.
How does the true up bill work?
This is what the utility company sends to solar users on the anniversary of the day their system was turned on. The True-Up reconciles all the cumulative energy charges and credits and compensation for an entire 12-month period.
How to lower true up bill?
Solution 1: Increase the number of solar panels on your current system. If your real-up bill is higher than you thought it would be, you aren’t making enough power to save the most money.
What happens if my true up bill is negative?
What does a negative Total True-Up Adjustment amount on the first page of your bill mean? It means that you either sent more energy to the grid than your property used or you still have energy export credits that can be used to offset charges. You can use these credits to offset current charges.
What is a true-up Bill?
In other words, the true-up bill adds up all of your annual energy costs, credits, and any net generation compensation you may be owed for the billing cycle and makes sure they add up. If there is still a balance due after the utility company reconciles your credits, that will show up on the true-up statement.
What happens if a balance is due on a true-up Bill?
After all credits and charges are added up, if there is a balance, it will show up on the True-Up statement. Should your system have made more energy than you used in the 12 months that were billed, you will get a small credit on your True-Up bill. The credit will be between 2 to 4 cents per kilowatt-hour for any leftover energy.
Do I have to pay my utility balance before true-up?
NEM1 and NEM2 customers don’t have to pay their utility bill until True-Up, but we don’t think you should wait. If you see a balance on your monthly statement, pay it then. This avoids any surprises at True-Up. As stated earlier, NEM3 customers are already required to pay any balances monthly. Your True-Up statement will include:
What is a true up statement?
What is a True Up? What is a True Up? After a year, you will get a True-Up Statement, which is the last bill for your billing cycle. The statement shows your net energy charges and credits for the whole year and any outstanding balances.
How do I know if my PG&E bill is true-up?
The statement also tells you how you are tracking towards your True-Up. Just look at your “Solar True-Up Tracking” box. It also contains a snapshot of your current and year-to-date charges and credits. As a solar or renewable energy customer, you receive a monthly PG&E bill.
What is your annual true up Bill?
That charge for supplemental electricity usage is what is known as your annual true up bill. It might sound confusing but it’s actually pretty simple. The amount of energy your solar system produces and how much electricity your home uses are added up on your annual true up statement.
