True-Up Bill: What Is It And Why It Matters

Going solar is one of the smartest long-term investments a California homeowner can make — but if you’ve recently received your annual True-Up Bill and it was higher than expected, you're not alone. Many solar users are caught off guard by this once-a-year bill, especially if they haven’t been actively monitoring their system or if their electricity usage has changed.

In this blog, we’ll break down exactly what a True-Up Bill is, why it can be unexpectedly high, and how to stay in control of your energy costs all year long so you’re not left with a surprise bill.

What Is a True-Up Bill?

A True-Up Bill is your utility company’s way of reconciling your energy production and usage over a 12-month period. Throughout the year, your solar system may generate more energy than you use during the day, which you send back to the grid. At night or during high-usage periods, you still draw electricity from the utility.

The utility keeps track of all this back-and-forth and settles the difference at the end of your billing cycle. If your system produced enough to cover your usage, your True-Up might be close to $0 — or even a credit. But if you consumed more than your system generated, you’ll owe the difference.

Why You Need to Monitor Your True-Up Throughout the Year

A major misconception is that once solar is installed, you can “set it and forget it.” Unfortunately, that’s not the case. Your True-Up Bill is building month-by-month behind the scenes, even if your regular utility bills show minimal or no charges.

You should:

• Check your system’s production monthly via your monitoring app or inverter portal.

• Track your energy usage compared to previous months or years.

• Log into your utility account regularly to view your estimated True-Up balance as the year progresses.

  
  

By doing this, you’ll be able to spot a potential problem early and make changes before a large balance builds up.

Why Is My True-Up Bill So High?

If your True-Up bill is significantly higher than you expected, there are several common reasons why:

1. Your Electricity Usage Has Increased

Many homeowners install solar, then start using more electricity — often without realizing it. You might’ve added:

• An Electric Vehicle (EV) that charges daily

• A new hot tub or pool equipment

• A heat pump, upgraded HVAC, or electric dryer

• A home addition, ADU, or extra occupants

All of these can easily push your usage beyond what your solar system was designed to handle.

2. Your Solar System Isn’t Being Monitored

Even the best solar systems can underperform if something goes wrong — such as:

• An inverter failure

• A tripped breaker

• Shading from new trees or roof debris

• Damaged or dirty panels

  
  

As the homeowner, you are your system’s first line of defense. At Planet Solar, sometimes different systems will send us alert notifications for major errors, but routine monitoring on your end is crucial to spot dips in production before they snowball into a large bill.

3. Utility Rates Have Risen

In California, utility rates have steadily increased, especially during peak evening hours when solar doesn’t produce. That means even a little extra grid use now costs more than it did just a year ago.

How to Stay Ahead of the True-Up Bill

The best way to avoid True-Up surprises is to stay proactive with your solar and energy use throughout the year. Here's how:

• Log Into Your Utility Account Monthly

  Most utilities provide a running balance or estimate of your current NEM usage. Set a reminder to check in once a month and see whether you’re on track.

  
  

• Track Usage Spikes

  If you suddenly see a jump in usage, review whether you’ve added any new appliances or changed habits — like running an EV charger more frequently or extending your HVAC run times.

  
  

• Monitor Your Solar System’s Performance

  Use your solar app to check that all panels are producing, and your inverter is online. Look for any performance drops or errors.

  
  

• Stay on Top of Seasonal Trends

  Summer AC usage or winter electric heating can dramatically shift your usage. Try to average out your usage and look for patterns that might indicate upcoming True-Up problems.

  
  

What to Do If Your True-Up Is Higher Than Expected

If you’re already facing a higher-than-expected bill, here’s how your solar company can help:

• Request a Solar Performance Audit

We’ll assess your system's health, check for underperforming panels, and ensure everything is operating correctly.

• Consider Adding More Panels

If your household has grown or your lifestyle has changed, your current system might not be big enough anymore. We can evaluate if there’s room to expand.

• Add Battery Storage

A solar battery allows you to store excess solar energy and use it during peak evening hours — when utility rates are highest. That reduces your need to pull expensive electricity from the grid and helps flatten your usage curve.

• Explore Usage Efficiency

Our team can walk you through ways to cut unnecessary energy use and improve your overall solar ROI.

Final Thoughts: Knowledge is Power — Literally

Your solar system is a powerful tool, but it works best when paired with smart energy habits and regular monitoring. True-Up Bills are manageable — and even avoidable — with the right awareness and action.

Need Help with a High True-Up Bill?

Let us help you get back on track. Contact Planet Solar for a free solar system review or expansion quote, and start taking full control of your energy future before next year’s bill arrives.

At Planet Solar, we’re here to help you understand your system, make informed energy decisions, and grow your setup when needed to fit your evolving lifestyle.

True-Up Bill: What Is It And Why It Matters