You invested in solar to lower your electricity costs, so receiving a surprisingly high electric bill or annual True-Up can be frustrating. Fortunately, a higher bill doesn’t necessarily mean your solar system isn’t working.
In many cases, the system simply isn’t producing enough electricity to offset your home’s current consumption. Your energy usage may have increased, utility rates may have changed, the original system may have been undersized, or an equipment problem could be reducing production. Finding the right solar solution starts with determining which of these issues is affecting your Fresno home.
Is Your Solar System Undersized?
An undersized solar system doesn’t produce enough electricity to cover the amount your home consumes. For example, if your household uses 12,000 kWh annually but your solar system produces 9,000 kWh, you still need to purchase approximately 3,000 kWh from the utility. Your solar is providing value, but it isn’t offsetting all of your electricity needs.
Sometimes a system was undersized from the beginning. A smaller solar system generally costs less, which can make a proposal appear more competitive. However, if your home needs the production of a 10-kW system, installing an 8-kW system for a lower price won’t provide the same results.
This is why solar proposals should be compared based on expected production and energy offset, not price alone.
Has Your Electricity Usage Increased?
One of the most common reasons homeowners with solar in Fresno experience higher bills over time is increased electricity consumption. Solar systems are typically designed around the home’s electricity usage at the time of installation. If your energy needs increase later, your solar production doesn’t automatically increase with them.
An electric vehicle, pool or spa, heat pump, electric appliances, additional air conditioning, home addition, or more people living in the household can all increase electricity usage. Even changing how you use your air conditioner after installing solar can make a difference.
For example, you may have kept your thermostat higher before solar to control costs. After installing solar, you might feel more comfortable running the air conditioner longer or setting the temperature lower. That additional electricity still needs to come from somewhere. When planning a solar system, it’s important to consider future needs such as EV charging, electrification, pools, or home additions whenever possible.
Why Can Your NEM 2 True-Up Increase?
Some homeowners experience a higher True-Up even when their overall electricity consumption hasn’t changed dramatically and their solar system is producing normally.
For NEM 2 customers, when electricity is produced and consumed matters.
Time-of-Use rates can make electricity more expensive during certain periods, particularly approximately 4 PM to 9 PM. Unfortunately, household electricity consumption often increases during these hours just as solar production begins declining.
If you’re purchasing significant amounts of electricity from the utility during expensive peak periods, your True-Up may increase even if your total annual energy usage hasn’t changed substantially.
That’s why evaluating a high solar bill requires looking at more than annual kilowatt-hours. You also need to understand when your home is drawing electricity from the grid.
Could Battery Storage Lower Your Utility Costs?
If your solar system produces enough electricity overall but you’re purchasing expensive electricity during peak hours, battery storage may help. A battery can store excess solar energy generated earlier in the day and make it available later. Instead of purchasing as much electricity from the utility during the 4 PM to 9 PM peak period, your home can use energy produced by your solar system earlier.
For some existing NEM 2 homeowners, battery storage may be enough to address the problem. However, a battery can’t compensate for a solar system that simply doesn’t produce enough electricity. If household consumption has increased substantially, additional solar production may also be necessary.
Do You Need More Solar and a Battery?
When an existing system can no longer meet a home’s electricity needs, additional solar paired with battery storage may provide a more complete solution. For some homeowners with existing NEM 2 systems, this can be accomplished with a non-export solar addition. The existing solar system continues operating under its current agreement, while the new panels provide additional electricity for the home and battery rather than exporting excess production to the grid. This approach can increase the amount of electricity available while also helping the homeowner use that energy more strategically.
Make Sure Your Solar System Is Working Properly
Before adding equipment, make sure a high electric bill isn’t being caused by a problem with your existing system. Compare your current electricity consumption with what you used when the solar system was installed. Check whether your system is producing approximately what it should and when you’re purchasing the most electricity from the utility.
The system itself may also need to be inspected. An inverter, optimizer, breaker, panel, or another component could be affecting production. Depending on what the evaluation finds, the right solution might be additional solar, battery storage, both, or simply a repair.
Find the Right Solution for Your Solar System
If you’ve had predictable electric bills or True-Ups for years and suddenly experience a significant increase, don’t ignore it. Something has likely changed.
Your household may be using more electricity, Time-of-Use pricing may be increasing your peak energy costs, the original system may no longer be large enough, or your solar equipment may not be producing properly.
At Supreme Solar and Electric, we evaluate existing residential solar systems by looking at production, household consumption, utility rates, net metering agreements, and future energy needs. From there, we can determine whether maintenance, battery storage, additional solar, or a combination of solutions makes the most sense.
A high electric bill doesn’t necessarily mean your solar investment isn’t working. It means it’s time to determine whether your home’s energy needs and your solar production are still properly matched.
Ready to learn how to improve production, reduce utility costs, and improve energy efficiency? Call the Fresno solar experts at Supreme Solar today!