A true-up is the periodic settlement of your solar account, usually once a year, in which the utility reconciles the credits you earned from exports against the energy you bought. Under many net metering and net billing plans, credits roll over month to month and only the remaining balance is settled at true-up. Excess credits are often paid out at a low wholesale or avoided-cost rate, carried forward, or forfeited, depending on the tariff. Some utilities collect energy charges monthly and settle only small items at true-up, while others bill a large balance once a year. Knowing your true-up month and rules helps avoid a surprise bill and avoids oversizing a system whose surplus would earn little.
Related terms and pages
- Net metering: Billing in which solar power you export offsets power you buy, kWh for kWh, at the retail price.
- Net billing: Billing in which exported solar is credited at a rate below what you pay for power.
- Net metering by state