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How to read your electric bill

• Solar affordability

March 30, 2026

Receiving the first utility bill after a solar system is switched on is an exciting moment. From that first bill onward, you are a different kind of electricity customer. You produce energy as well as consume it.

This can lead to confusion because your utility bill won’t match the data in your solar monitoring app (like Enphase or SolarEdge) one-to-one. Below, we break down common utility charges and explain how to reconcile your app with your bill so you can see the full picture of your home’s energy production and consumption.

Common utility bill charges & terms

Primary charges: (On most bills.)

Rate: How much you are charged per kilowatt-hour (kWh).

Customer charge: A fixed monthly fee paid regardless of how much energy you use. Even if your solar offsets 100% of your energy, you will still pay this to stay connected to the grid.

Distribution/Transmission charge: The cost of delivering electricity to your home and maintaining the poles and wires.

Generation/Fuel charge: The cost of the actual energy or fuel used to create the electricity you pull from the grid.

Solar Specific Terms:

Net Metering / Net Billing: The system used to credit you for excess energy.

Export Credit: The energy you sent out to the grid.

Import / Delivery: The energy you pulled in from the grid (usually at night).

Other charges: These may not be on your bill depending on your electricity plan and your utility.

Storm charge: Recovery costs from major weather events.

Franchise charge: Paid to municipalities so the utility can operate locally.

Utility tax: Local taxes applied to utility service.

Demand charge: Based on the highest level of power (kW) you use during a billing period or peak window. More common for commercial customers, but some residential rate plans include it.

Peak / Off-peak charges (Time-of-Use): Electricity costs more during high-demand hours (peak) and less during low-demand hours (off-peak).

Tracking solar on your utility bill

In most cases, you won’t use all the electricity your system generates at the exact moment it’s produced.

• The solar energy you use instantly in your home is called self-consumption.
• The solar energy you don’t use immediately flows through your meter to the grid.
• When that happens, you typically earn an export credit (also called a net metering credit).*

*Export Credit rates can vary widely across the country

Why your utility bill and solar monitoring app don’t match

Your solar monitoring app shows total system production.

Your utility bill only tracks:

• Electricity you pull from the grid
• Electricity you send to the grid 

Your utility cannot see the solar energy you used directly in your home before it ever reaches the meter.

Example

Your utility bill shows:

• 906 kWh = Energy pulled from the grid
  378 kWh = Solar energy exported to the grid
  528 kWh = Net usage billed by the utility

Your solar monitoring app shows:

• 800 kWh total production

This means:

• 378 kWh was exported (credited)

• 422 kWh (800 – 378) was used instantly in your home

• Total home electricity use was 1,328 kWh (906 from grid + 422 from solar)

• Utility billed you only for 528 kWh after credits

 

Utility Bill Example: 

What to do if you think your electric bill is too high

If your bill seems higher than expected after going solar, work through this checklist:

1. Compare Total Usage (kWh), Not Just Dollars

Electricity rates can change seasonally. Always compare:

• This month’s kWh usage
• Same month last year (pre-solar if possible)

If your total usage increased, solar may be working correctly, and you may simply be using more electricity.

Common causes of increased electricity consumption:

• Extreme weather (heating or cooling spikes)
• New appliances
• Electrifying your home
• Electric vehicle charging
• Guests staying in the home
• Working from home more

2. Check Solar Production in Your App

Look at:

• Monthly production
• Compare to same month last year (if available)
• Look for error messages or offline alerts

If production dropped significantly:

• Check for inverter errors
• Contact your installer if needed

3. Confirm Your System Is Reporting Properly

Sometimes your monitoring system may be offline, or a single inverter may not be producing

4. Understand Seasonal Timing

Solar production is highest in spring and summer. Electric heating loads are highest in winter. It’s normal to build credits in sunny months and use them during darker months

5. Check Your Rate Plan

You may be on:

• Time-of-use rates
• Demand charges
• A different net metering structure

If you use most of your electricity at night, solar won’t offset that usage unless you have battery storage.

6. Review Budget Billing

If you are on budget billing, your monthly payment may not immediately reflect solar savings. The adjustment happens at your annual true-up, so many solar homeowners prefer to leave budget billing to avoid confusion.

7. Look at Consumption Monitoring (If Installed)

If you have consumption monitoring, check:

• Did your total consumption increase?
• Are there new high-draw devices?
• Are you using more electricity at night?

This is often the fastest way to identify the issue.

Standard solar apps only show Production. Consumption Monitoring devices allow you to see the full picture.

• Current Transformers (CTs): can be installed in your main panel so your solar app shows both what you make and what your house is using in real-time.
• Add-on Monitors (Sense, Emporia): These devices clip onto your main power lines to identify which appliances (like a faulty pool pump or old fridge) are “vampire” loads.
• Smart Panels (SPAN): These replace your standard breaker box and allow you to see exactly how many watts every single circuit in your house is pulling.

Who to contact with questions

• Billing questions- Utility customer service
• Production or equipment issues – Installer or solar manufacturer
• Monitoring questions- Monitoring provider

Need help understanding your utility bill? Contact our Solar Help Desk for additional guidance.