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    Do I Still Get a Utility Bill With Solar? Yes — Here's What's On It

    Last verified 2026-09-08. Figures carry their sources at the foot of this page.

    Mandatory
    Monthly billing requirement
    CPUC D.22-12-056 (Date of Issuance 12/19/2022; adopted 12/15/2022), p. 136 — all Net Billing customers pay incurred charges every month, no exceptions
    12 months
    Annual true-up cycle
    Runs on the system's interconnection anniversary, not the calendar year — D.22-12-056 at 134
    A few cents/kWh
    Net Surplus Compensation (annual surplus payout)
    D.22-12-056, Appendix A, p. A-2 — the Commission's consumer summary states only "a few cents per excess kilowatt-hour," no specific numeric range given. Separate from, and typically smaller than, the hourly export-credit rate used on your regular monthly bill.
    4 fixed charges
    Non-bypassable charges
    Public Purpose Programs, Nuclear Decommissioning, Competition Transition, Wildfire Fund — apply no matter how much you export (D.22-12-056 at 115-119, Ordering Para. 1(f))
    20 years
    Legacy NEM 1.0/2.0 grandfathering
    From original interconnection date. Set by D.16-01-044 and left unchanged for standard NEM 1.0/2.0 customers by D.22-12-056 (Finding of Fact 235, p. 229). Not the same as the Net Billing Tariff's own 9-year rate-lock for new NEM 3.0 customers (D.22-12-056, Ordering Para. 1(i), pp. 239-240).
    $94
    SCE one-time interconnection fee
    Systems under 1 MW; $800 at 1 MW and over — sce.com, fetched 2026-09-08

    Yes. Under the tariff structure now governing nearly every new California solar installation — the Net Billing Tariff, generally called "NEM 3.0" — you get a bill every month and you pay it every month. The California Public Utilities Commission said so directly in Decision 22-12-056, the order that created this tariff: "this decision requires residential customers and nonresidential customers to pay their bills monthly, meaning customers must pay all incurred charges every month" (D.22-12-056, p. 136). The Commission's own consumer summary is blunter: "most Net Billing customers will still pay electric bills in most months of the year" (Appendix A, p. A-2).

    That surprises people who installed solar expecting the old near-zero-bill experience, or who heard "annual true-up" and assumed nothing arrives until next year. Both expectations describe the prior NEM 1.0/2.0 tariff, not the one governing systems interconnected under Net Billing. Two things are true at once here: you get billed monthly, and you also have an annual true-up. They're not the same event, and confusing them is where most of the panic starts.

    This page walks through what's actually on that monthly bill, what the annual true-up settles separately, why the dollar amount jumps around by season, and which parts of the bill solar can never zero out no matter how much you produce.

    Why you didn't get the near-$0 bill you may have expected

    If you talked to a solar company before 2023, or you heard about solar from a neighbor whose system predates that, the mental model you got was probably NEM 2.0: export credits offset imports one-for-one in dollar terms, and most months landed near zero. That system still exists for people grandfathered into it, but new applicants have not been eligible since the Net Billing Tariff took over.

    The replacement tariff was adopted deliberately, after a multi-year rulemaking (R.20-08-020), specifically to end the near-zero-bill outcome for new solar customers. The Commission's decision requires monthly payment of all incurred charges — not a rolling balance that only gets settled once a year (D.22-12-056 at 136). If your installer told you "you won't get bills anymore," that statement was accurate for systems installed years ago and is not accurate for a system installed today. That gap between what was pitched and what the tariff now requires is the single most common source of the "wait, why am I still getting billed" moment — and it's a communication failure on the sales side, not a sign the solar itself is malfunctioning.

    Worth noting: this isn't unique to any one installer or company. It's the tariff every customer under PG&E, SCE, and SDG&E who interconnected after the NEM 2.0 cutover is subject to, regardless of who sold or installed the system.

    Two different clocks: the monthly bill and the annual true-up

    These run on separate schedules and settle different things, and treating them as one event is where the confusion compounds.

    Monthly billing nets that month's grid exports against that month's grid imports, applies any bill credits you've banked from prior months, and charges you for whatever's left. If you have leftover credit after a light-usage month, it doesn't get paid out — it rolls forward to next month's bill (D.22-12-056 at 134-136).

    Annual true-up is a full reconciliation, once every 12 months, on the anniversary of your system's interconnection date — not January 1, not your billing cycle start. If you owe more than your banked credits cover across the full year, you pay the difference. If you exported more than you used across the full year, you get paid a small per-kWh amount called Net Surplus Compensation — "a few cents per excess kilowatt-hour," per the Commission's own description (D.22-12-056, Appendix A, p. A-2). That rate is set and tracked separately from the routine hourly export-credit rate applied to your regular monthly bill, and is typically the smaller of the two.

    One practical option buried in the decision: you can request a one-time change to your true-up anniversary date, specifically so summer-banked credits can be applied against winter bills instead of expiring against an arbitrary date (D.22-12-056 at 136, Ordering Para. 1(h)). SDG&E specifically was ordered to develop a standard process for handling these requests, with a 120-day compliance deadline from the decision's adoption (D.22-12-056 at 240, Ordering Para. 3). Ask your utility directly for the current procedure — whether the timing of your true-up date is working against you is worth a direct call either way.

    Why the bill amount swings so much month to month

    A $14 May bill and a $210 December bill from the same household, same system, isn't a red flag — it's what the tariff and California's solar seasonality produce together.

    California solar systems typically produce two to three times more electricity in summer than in winter, a point the Commission's decision cites directly in explaining why it rejected utility proposals for a monthly (rather than annual) true-up: annual reconciliation "allow[s] for the natural cycle of solar conditions" (D.22-12-056 at 135-136). In practice: spring and summer months bank large surplus credits from afternoon exports. Fall and winter draw those credits down, and once they're exhausted you're paying cash, at that month's time-of-use rate, for whatever you import.

    There's a second reason the swing isn't a clean wash even in a break-even year: exports and imports are valued differently depending on the hour. A kWh you export at 1pm is worth a different bill credit than a kWh you import at 7pm, because time-of-use export and import rates aren't set to mirror each other (CALSSA's point, adopted by the Commission at 135). So even a system that produces exactly what the household consumes over a year can still generate real net charges in individual months, purely from the timing mismatch between when you're exporting and when you're drawing power back.

    The four charges solar cannot zero out

    This is the part of the bill worth understanding before you're surprised by it: certain charges apply to every kilowatt-hour you import from the grid and cannot be offset by exported-energy bill credits, no matter how large your system is or how much you've banked.

    The Commission's decision confirms four specific non-bypassable charges: the Public Purpose Programs Charge, the Nuclear Decommissioning Charge, the Competition Transition Charge, and the Wildfire Fund Non-Bypassable Charge (D.22-12-056 at 115-119, formally adopted at Ordering Para. 1(f), p. 239). That last one replaced an older DWR Bond Charge that expired in 2020.

    These exist because they fund obligations the state has decided every customer shares in — low-income rate assistance and energy efficiency programs, retired nuclear plant decommissioning, stranded generation costs from utility restructuring, and wildfire fund contributions — regardless of whether that customer happens to have solar. A system that exports more than it imports over a year will still see these line items on months where it drew any power from the grid at all, even a small amount overnight.

    This is normal and it is not a billing error. If your installer implied a fully solar-powered home would see literal $0 bills forever, that implied a level of self-sufficiency (24/7, zero grid draw, including at night) that grid-tied solar without a large battery doesn't achieve — and even then, these four charges attach to any imported kWh.

    Connection fees, minimum bills, and other fixed charges

    Beyond the four non-bypassable charges, most residential rate schedules carry their own fixed or minimum-bill structure that solar doesn't remove.

    The Commission's decision is explicit that it did not invent a new minimum bill for Net Billing customers — it simply confirmed that, as was the current practice in NEM 2.0, "net billing tariff customers will be subject to any minimum bill or fixed charge that is contained in a customer's applicable rate" (D.22-12-056 at 128; adopted at Ordering Para. 1(g), p. 239). In other words: whatever minimum applies to the underlying rate schedule you're on (PG&E's E-ELEC, SCE's TOU-D-PRIME, SDG&E's EV-TOU-5, and similar plans) still applies after solar. For reference, a prior Commission decision, D.15-07-001, set a minimum bill of $5/month for CARE customers and $10/month for non-CARE residential customers on the non-generation portion of the bill (cited at D.22-12-056, p. 128 and Finding of Fact 136, p. 227) — that figure comes from the NEM 2.0 era, and whether the exact dollar amount carries forward unchanged on today's rate schedules wasn't independently confirmed for this page. Check your utility's current tariff sheet for the number that applies to your account.

    Separately, there's a one-time application fee to interconnect in the first place — not a recurring bill item, but worth knowing about upfront. SCE publishes a $94 fee for systems under 1 MW (residential systems are almost always well under this) and $800 for systems 1 MW and larger (sce.com, fetched 2026-09-08). That's paid once, at installation, not monthly.

    What a normal post-solar bill should actually contain

    A legitimate monthly bill after solar installation will typically show, in some form: a basic service or meter charge, generation charges for any energy purchased from the utility, distribution and transmission delivery charges, the four non-bypassable charges above, a scattering of small regulatory line items (a CEC energy fee, a franchise fee), your net energy credit or charge for the billing period, and your running bank of banked bill credits carried from prior months. PG&E's own bill explainer groups these into three buckets — Energy Cost (about 50% of a typical electric bill), Energy Delivery (about 40%), and Public Purpose Programs (about 10%) — with named line items including the Base Services Charge, Distribution Charge, Wildfire Hardening Charge, Recovery Bond Charge/Credit, the Power Charge Indifference Adjustment (PCIA), and Competition Transition Charges (pge.com, fetched 2026-09-08). SCE and SDG&E structure their bills similarly, though this page could not independently pull an equivalent itemized list directly from either utility's own bill-explainer page — treat the Commission's decision (Table 5, p. 118) as the authoritative cross-check for what's allowed to appear.

    What should NOT be a permanent fixture: a bill that never shows any credit line, ever, even in July. If your system is sized and oriented reasonably and you're seeing full retail-equivalent charges in your peak production month with zero bill credit applied, that's worth a call to your utility to check the interconnection was completed and net metering is actually active on the account — not a normal outcome of the tariff itself.

    Why your neighbor's bill looks completely different

    If a neighbor with solar has a visibly different-looking bill than yours — different credit structure, different rate schedule name, no true-up mentioned at all — the likely explanation is that they're on a different tariff generation, not that either bill is wrong.

    Customers who interconnected under an earlier NEM tariff (1.0 or 2.0) keep those original terms for 20 years from their interconnection date — a legacy period the Commission originally set in D.16-01-044 and left unchanged for standard NEM 1.0/2.0 customers in this decision (D.22-12-056, Finding of Fact 235, p. 229). That's a different figure from the nine-year period mentioned elsewhere on this page: nine years is how long the Net Billing Tariff locks in its own terms for a new NEM 3.0 customer once they interconnect, tied to the original customer rather than the system, with a narrow exception for a surviving spouse or domestic partner (D.22-12-056, Ordering Para. 1(i), pp. 239-240). Two different tariff generations, two different clocks — don't let one get mistaken for the other.

    There's a related wrinkle for anyone interconnecting soon: PG&E and SCE customers (not SDG&E, whose already-higher rates make the adder unnecessary) who interconnect before the end of 2027 get a temporary bump to their export credit rate for nine years, called the ACC Plus adder (D.22-12-056, Appendix A; Ordering Para. 1(b), pp. 237-238). Two neighbors who both installed under Net Billing, six months apart, can still see different effective export rates because of this one provision alone. None of this means one household's deal was better negotiated — it usually just reflects the interconnection date and the tariff version active on that date.

    When this concern doesn't actually apply to you

    Skip the worry if any of the following is true. You're on a publicly owned utility — LADWP, SMUD, MID, Anaheim, Roseville, Lodi, Imperial Irrigation District, or Turlock Irrigation District — none of which are bound by CPUC Net Billing rules; they set their own net metering terms, and some still offer arrangements closer to the old near-zero-bill model. You interconnected under NEM 1.0 or 2.0 before the Net Billing cutover; you're still inside your 20-year grandfathered term (D.16-01-044) and this tariff doesn't govern your account yet. Your bill shows a real, non-zero credit line in your peak production months and only turns to cash charges in fall and winter — that's the seasonal pattern working exactly as designed, not a sign your system is undersized. And if what actually alarmed you was the phrase "you'll still get a bill" itself — that's simply accurate for Net Billing, confirmed by the Commission's own order, and not evidence anyone misled you about how the tariff works, even if a salesperson oversold the near-$0 outcome that only applies to older tariffs.

    What's on a California solar bill: which charges bill credits can and can't offset (per CPUC Decision 22-12-056)

    ChargeOffsettable by export credits?Applies atSource
    Public Purpose Programs ChargeNo — non-bypassablePG&E, SCE, SDG&ED.22-12-056 at 115-119, Ordering Para. 1(f)
    Nuclear Decommissioning ChargeNo — non-bypassablePG&E, SCE, SDG&ED.22-12-056 at 115-119, Ordering Para. 1(f)
    Competition Transition ChargeNo — non-bypassablePG&E, SCE, SDG&ED.22-12-056 at 115-119, Ordering Para. 1(f)
    Wildfire Fund Non-Bypassable ChargeNo — non-bypassablePG&E, SCE, SDG&ED.22-12-056 at 119, fn. 339
    CEC Energy FeeYes — bypassablePG&E, SCE, SDG&ED.22-12-056, Table 5, p. 118
    Power Charge Indifference Adjustment (PCIA)Yes — bypassablePG&E, SCE, SDG&ED.22-12-056, Table 5, p. 118
    New System Generation ChargeYes — bypassablePG&E, SCED.22-12-056, Table 5, p. 118
    Local Generation ChargeYes — bypassableSDG&E onlyD.22-12-056, Table 5, p. 118
    Minimum bill / fixed charge (rate-schedule dependent)Depends on rate scheduleAll three IOUsD.22-12-056 at 128, Ordering Para. 1(g)
    One-time interconnection application feeN/A — one-time, not recurringSCE: $94 under 1 MW / $800 at 1 MW+sce.com, fetched 2026-09-08

    When this is the wrong move

    This concern doesn't apply if you're served by a publicly owned utility — LADWP, SMUD, MID, Anaheim, Roseville, Lodi, Imperial ID, or Turlock ID — since none of them are bound by the CPUC's Net Billing rules and several offer terms closer to the old near-zero-bill model. It also doesn't apply if you're still inside your 20-year grandfathered window under an earlier NEM 1.0/2.0 tariff (D.16-01-044). And it's not actually a problem if your bill simply looks the way this tariff was designed to make it look: real charges in low-production months, real credits in high-production months, and a once-a-year true-up reconciling the two. The thing to actually worry about is different: a bill that shows full charges with no credit line even in your best production month, which usually means an interconnection or metering issue rather than the tariff working as intended — that's worth a direct call to your utility, not a reason to distrust the tariff itself.

    Frequently asked questions

    So solar doesn't eliminate my utility bill at all?

    It reduces it, and it can reduce it substantially, but under the Net Billing Tariff now governing new California installations, it does not eliminate the monthly bill itself. You'll see real dollar charges in months when your banked credits run out, most commonly fall and winter. Only very large systems paired with significant battery storage get close to a genuine $0 recurring bill, and even those still see the four non-bypassable charges on any month with grid draw.

    What's the difference between the monthly bill and the annual true-up?

    The monthly bill nets that month's usage against banked credits and charges you for any shortfall, with leftover credit rolling to next month. The annual true-up, on your interconnection anniversary, reconciles the full 12 months at once — you either owe a final balance or get paid a small per-kWh amount (Net Surplus Compensation) for any full-year surplus. They're on separate clocks and settle separately.

    Why do I get charged even though I exported more than I used?

    Two reasons. First, four specific charges — Public Purpose Programs, Nuclear Decommissioning, Competition Transition, and the Wildfire Fund charge — apply to every imported kWh and can't be offset by export credits, per CPUC Decision 22-12-056. Second, the rate you're credited for exporting at 1pm isn't the same as the rate you're charged for importing at 7pm, so even a break-even year in raw kWh terms can produce real net charges.

    Can I move my annual true-up date?

    The decision allows a one-time request to change your true-up anniversary, specifically so summer-banked credits can be applied against winter bills rather than sitting unused near an arbitrary cutoff (D.22-12-056 at 136). SDG&E specifically was ordered to develop a standard process for handling these requests (D.22-12-056 at 240, Ordering Para. 3). Ask your utility directly how to request it today.

    My neighbor's solar bill looks totally different from mine — did I get a worse deal?

    Probably not. Customers who interconnected under the earlier NEM 1.0/2.0 tariff keep those terms for 20 years from their interconnection date (D.16-01-044) — not nine years, which is a separate figure describing how long a new Net Billing Tariff customer's own terms are locked in. So two similar homes can be on structurally different tariffs depending purely on interconnection date. PG&E and SCE customers interconnecting before the end of 2027 also get a temporary export-rate adder (ACC Plus) that SDG&E customers don't get, for reasons unrelated to system quality or contract negotiation.

    Is this the same everywhere in California?

    No. This entire structure — Net Billing, monthly billing, the four non-bypassable charges, the true-up mechanics — comes from CPUC jurisdiction, which covers PG&E, SCE, and SDG&E. Publicly owned utilities like LADWP, SMUD, MID, and several irrigation districts set their own net metering terms and are not required to follow this tariff.

    The bottom line

    Solar in California under the Net Billing Tariff means a monthly bill, not a monthly check. The Public Utilities Commission ordered it that way in Decision 22-12-056: pay what you owe every month, bank what you don't use, settle the full year once at true-up. Four charges — Public Purpose Programs, Nuclear Decommissioning, Competition Transition, and the Wildfire Fund charge — show up on every bill regardless of how much you export, and most rate schedules carry a minimum bill or fixed charge on top of that. None of that is a sign the system failed or the deal was bad. A bill that swings from $180 in January to $12 in July, with occasional small credits in between, is what correctly-sized solar looks like under this tariff. The version to worry about is a bill that never drops in peak production months, or one where the imported-kWh charges are climbing faster than the exported-kWh credits — that's a sizing or shading problem, not a billing structure problem.

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    Do You Still Get a Utility Bill With Solar in CA?