How to Read Your Electric Bill After Installing Solar

After making the switch to solar, many California homeowners are surprised to find they still receive a monthly electric bill.

But rather than signaling a problem, this post-solar statement is an essential tool for understanding your system’s performance and how your utility company—whether SCE, SDG&E, or another—charges for electricity under solar-specific programs like Time-of-Use (TOU) billing and Net Energy Metering (NEM 3.0).

Let’s break down exactly how to read your electric bill after going solar and what each section means for your energy savings.

Why You Still Receive an Electric Bill

Even with solar panels, you remain connected to the grid. This allows you to draw electricity when your panels aren’t producing enough—such as at night or on cloudy days—and to send excess energy back to the grid when your panels produce more than you use.

That relationship is what makes net metering possible, and it also explains why your electric bill doesn’t disappear entirely.

Depending on your utility provider, your monthly bill may include:

• A minimum connection fee, just for staying tied to the grid.
• Charges for energy used beyond your system’s production.
• Credits for surplus energy your panels sent to the grid.

Understanding Your Meter and Net Energy Metering (NEM 3.0)

Your smart meter plays a critical role in tracking the energy you use and produce. It records both imports from and exports to the grid.

Under California’s current NEM 3.0 policy, the compensation for exported energy has changed. Instead of one-to-one credit, you now earn credits based on the value of solar at the time it’s exported.

To learn more about these policy shifts, review Key Changes in NEM 3.0 or What Is NEM 3.0 True-Up? to understand how these updates affect your monthly or annual

savings.

Time-of-Use (TOU) Billing and Why Timing Matters

Most California utilities have moved to TOU billing, which means the rate you pay (or earn) for electricity changes throughout the day. Energy used during peak demand hours (typically late afternoon and early evening) costs more than during off-peak times.

Solar owners benefit by adjusting energy usage to align with TOU schedules—running dishwashers or EV charging in off-peak hours can maximize savings. For example, if you’re a Southern California Edison customer, review their latest TOU structure in this guide to SCE TOU Billing 2025. SDG&E customers can consult SDG&E TOU Billing to understand how seasonal rates might affect your bill.

What the Bill Looks Like After Solar

Your post-solar electric bill will typically include:

• Monthly service charges (around $10–$15).
• A running balance of energy credits earned and used.
• A summary of total kWh produced, used, and exported.
• Generation charges for energy pulled from the grid.

If you produce more than you consume in a billing period, your account may show a credit that rolls over.

Annually, your utility may “true-up” your account—reconciling total usage, generation, and any remaining balance. You can learn about that process in Transitioning to NEM 3.0.

Interpreting Your Energy Usage and Production

One of the most valuable sections of your electric bill is the detailed energy usage graph. This section may show:

• Daily kWh usage versus production.
• Peak vs. off-peak consumption.
• Net energy credits applied.

These visuals help you understand when you rely on the grid and how much power your system is offsetting.

Some homeowners choose to add solar battery storage to minimize reliance on the grid during peak hours and store excess energy for later use.

Common Charges That May Appear

Here are some items you might see on your bill:

• Delivery and distribution charges: The cost of maintaining the grid infrastructure.
• Public purpose programs: Fees supporting statewide energy assistance.
• DWR bond charges: Legacy costs from California’s energy crisis.
• Minimum delivery charge: A base fee for being connected to the grid, even if you’re a net generator.

Even if your solar system meets most of your needs, these charges ensure you’re contributing to infrastructure and support programs.

How to Maximize Savings With Your Solar Bill

To ensure you’re getting the most out of your solar system:

• Monitor your solar production monthly. Many systems come with an app or dashboard.
• Shift heavy usage to off-peak hours. TOU savings depend on timing.
• Evaluate your net metering credits regularly. See if battery storage might enhance your benefit.
• Schedule seasonal maintenance to keep your system running efficiently. Our article on solar panel maintenance costs can help you weigh the pros and cons of routine service.

Managing Your Monthly vs. Annual Billing Schedule

New solar customers under NEM 3.0 may be offered monthly or annual billing options. Monthly billing lets you pay as you go, while annual billing defers most payments to a “true-up” bill at the end of the year. There’s no one-size-fits-all answer, but homeowners who use consistent energy or have added solar battery storage may benefit more from one option than the other.

You can dive deeper into this in our guide: Monthly vs. Annual Billing Schedule.

Final Thoughts: Your Solar Bill Is a Tool, Not a Burden

While your solar electric bill may look different than expected, understanding it empowers you to track your savings, optimize your energy use, and plan upgrades like EV charging or battery storage with confidence. If you’re not sure how your current bill compares to expectations, it might be time for an energy audit, or a system performance check to ensure you’re getting the most from your investment.

At New Day Solar, we’re here to make the post-solar transition easy. Whether you’re curious about your meter, need help with TOU billing, or want to know if battery storage is right for you, we’re ready to help.

Contact us today to schedule a system evaluation or get your solar questions answered.