Sunprint
At a glance
A true-up is the annual settlement of a solar account at PG&E, SCE and SDG&E. What it does depends on your plan. The CPUC moved new solar customers to monthly bills under the Solar Billing Plan so they "are not surprised by a large annual bill after their true-up date." Homes still on net metering, NEM 1.0 or 2.0, which can stay on it for 20 years from when the system was connected, settle most of the year's energy charges at once.
NEM vs. the Solar Billing Plan
- Each month you pay the Base Services Charge and any non-energy charges.
- Energy charges and credits pile up for 12 months.
- At true-up, what you owe is due. Leftover credits are reset to zero.
- If you sent out more kWh than you used, you get net surplus pay for the extra.
- You pay each month; credits roll forward to later months.
- At true-up, if you sent out more kWh than you used, the export credits on the extra are taken back.
- You get net surplus pay for those kWh instead.
- At PG&E, credits left over after that roll into the next year.
One more difference under the Solar Billing Plan: PG&E and SDG&E split credits into two buckets. Credits for the energy part can only pay energy-part charges, and credits for the delivery part only delivery charges, so your statements show two running balances.
Net surplus pay: about 3 cents a kWh
If you sent more kWh to the grid than you used from it over the 12 months, the extra is paid at a net surplus compensation rate, set from wholesale power prices under a 2011 CPUC decision. It's automatic. At PG&E it has stayed close to 3 cents:
PG&E net surplus pay, by true-up month
Cents per surplus kWh, January 2025 to November 2026
Source: PG&E net surplus compensation rate table. The rate is a 12-month average of daytime wholesale prices for your true-up period.
That's far less than the retail price you pay for power. On the Solar Billing Plan, PG&E warns, it can also be lower than the export credits you earned along the way, so you may owe money back. The CPUC's consumer guide notes that systems are typically sized to about 80 to 85% of last year's use. If a community choice provider buys your power, PG&E says it may not pay net surplus at all; ask your provider.
What PG&E, SCE and SDG&E call it
| Utility | What it's called | When | If you sent out more than you used |
|---|---|---|---|
| PG&E | True-Up Statement | End of your 12-month cycle | Credit adjustment for both the energy-produced and energy-delivered parts, then net surplus pay |
| SCE | Annual settlement bill | The month your system started | "EEC Adjustment" on the extra kWh, then Net Surplus Compensation |
| SDG&E | True-up bill | Every 12 months | Annual True-Up Adjustment at an average export rate, then an Excess Generation Payment |
Solar Billing Plan customers. Sources: PG&E Solar Billing Plan guide, SCE Solar Billing Plan page, SDG&E Understanding Your Solar Bill page.
In PG&E's own example of a Solar Billing Plan home that sent out more than it used:
PG&E's own illustration from its Solar Billing Plan guide.
At SDG&E the takeback uses an average export rate for all its Solar Billing Plan customers; for September 2026 it was 11.0 cents per extra kWh, 8.67 for the generation part and 2.33 for delivery. SCE's example: a home that used 900 kWh from the grid and sent out 1,000 keeps its credits for 900, and the other 100 are paid at the surplus rate.
Why a true-up bill can be big
More people in the house, big new appliances, an electric car or a pool, and on the solar side, system size, roof direction and weather.
On net metering, most energy charges wait for the true-up. A summer of air conditioning or a new EV can build a balance month by month that only comes due at the end. Credits earned in sunny months can cover darker ones, but at PG&E any credits left at the end are reset to zero; they don't carry into the next year.
Since March 2026, PG&E's net metering customers also pay the monthly Base Services Charge, about $24, instead of the old Minimum Electric Charge, and solar credits can't pay it. SDG&E lets net metering customers pay its Base Services Charge monthly or wait until the true-up.
Avoiding a surprise
- Read the year-to-date box. Monthly statements at PG&E and SDG&E show your running charges and credits, and SDG&E shows an estimated true-up adjustment.
- Spread it out. PG&E offers payment arrangements for a true-up bill.
- Don't oversize. Extra kWh at the end of the year earn net surplus pay, about 3 cents.
What a free quote call gets you
- One verified local installer
- The installed price for your roof
- Your payback years from that price
- Free, with no obligation
See what solar could save you
About a minute, and no phone number needed. If the number looks good, a free quote call gets you the exact price.
Common questions
What is a solar true-up bill in California?
The annual settlement of a solar account at PG&E, SCE or SDG&E. On net metering it reconciles a year of energy charges and credits; on the Solar Billing Plan it mainly adjusts credits if you sent more power to the grid than you used over the year.
Why is my PG&E true-up bill so high?
On net metering, energy charges carry forward for 12 months and come due on the true-up statement, so a year of higher use, a new EV or appliance, or less solar output shows up all at once. PG&E offers payment arrangements for true-up bills.
What happens to my solar credits at true-up?
On PG&E net metering, remaining credits are reset to zero, and any net surplus is paid at the surplus rate. On PG&E's Solar Billing Plan, credits left after the true-up roll into the next 12-month period.
How much is net surplus compensation?
At PG&E it was between 2.68 and 3.40 cents per kWh for true-ups from January 2025 to November 2026, based on a 12-month average of daytime wholesale prices.
Do I get a true-up on the Solar Billing Plan?
Yes, once a year: PG&E calls it a True-Up Statement, SCE an annual settlement bill and SDG&E a true-up bill. If you used more power from the grid than you sent out, there's usually no adjustment.
Related guides
- California solar calculator
- NEM 3.0 in California, explained
- NEM 2.0 vs. NEM 3.0
- The Base Services Charge
- Why is my PG&E bill so high?
- Solar batteries in California
Utilities change their bills and rules; check your own statement for your plan and true-up month. Sources: PG&E: solar bill · PG&E: NEM bill · PG&E Solar Billing Plan guide · PG&E net surplus rate table · SCE: Solar Billing Plan · SDG&E: Understanding Your Solar Bill · SDG&E: Base Services Charge · CPUC: net metering and net billing · CPUC: Solar Consumer Protection Guide. Reviewed October 2026.
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