Electric Bill After Going Solar

NEM 1 & NEM 2: The Traditional Solar Billing Model

How It Works

If you started your solar project before April 2024, you’re likely under NEM 1 or NEM 2. These policies are similar:

• You export excess solar to the grid and receive credits at full retail rate.
• You’re billed monthly, but your true-up happens once per year.
• At true-up, you either:
  • Get paid or roll over credits if your solar produced more than you used
  • Or pay the difference if you consumed more than you generated

Example:

• Your solar produced 12,000 kWh in 12 months
• You used 11,500 kWh in the same period
• You have a 500 kWh credit applied or rolled over

Your Monthly Payments

You’ll still have a small PG&E/SCE/SDG&E connection fee—usually $10–$15/month. That shows up on each statement year-round. But your real costs happen at true-up—once per year.

Real‑World Example

A homeowner installs a 6 kW system sized to offset their annual usage. During sunny months, they bank credits. In winter, they draw from the grid. At year-end, they might owe $200–$300 or receive a small refund—depending on their usage pattern. With accurate sizing, most end up spending less than $500/year on electricity after solar.

Enter NEM 3 (Net Billing): The New Model

What Changed?

NEM 3 rolled out in 2023 for new solar adopters. It’s a significant shift:

• Credits for solar exports are wholesale-based (4–8 cents per kWh) — much lower than retail
• True-up switches to monthly billing
• Solar + battery systems are required for meaningful savings
• You pay or get credited every month

Monthly Billing Explanation

1. Solar production happens midday
2. Excess solar gets credited at wholesale rate
3. Battery stores energy for later use (evening/early morning)
4. Grid charges may apply if you pull more than you produce/store
5. You pay—or get credited—each month, not just annually

Connection Fees

Yes, you still pay ~$10–$15/month for grid access. That doesn’t change.

How Much Will You Actually Pay After Solar?

Under NEM 1 / NEM 2

• Expect less than $500 per year in true-up charges for a properly sized system
• Monthly bills will be low until true-up, then you pay the difference (or get a refund)

Under NEM 3

• You’ll still see a statement each month
• Usually your bill is in the $0–$50 range if your system and battery are sized well

With overproduction and efficient storage, annual cost remains under $500.

Key to Keeping Your Costs Low? System Design

1. Proper Solar Sizing

Make sure your panels produce around 100–120% of your annual usage. Oversized? You send more to the grid at low credit rates. Undersized? You need to buy from PG&E more often.

2. Battery Storage Ratio

Essential under NEM 3:
2–2.5 kWh usable battery capacity per 1 kW solar
This ensures:

• Excess solar is stored, not oversent to the grid
• Enough nighttime energy to minimize grid use
• Monthly net-bill stays near zero

3. Tier‑1 Equipment

Top-quality panels, inverters, and batteries (like Neovolta, Enphase) maintain efficiency and longevity.

4. Grid Connection Costs

Connection fees aren’t going anywhere—you’ll pay them monthly regardless. A well-sized system makes sure your total usage and draws are nominal.

Common Billing Scenarios

Scenario A: Annual NEM (NEM 1/2)

• 12-month true-up
• Example: $20/month + $250 annual true-up = ~$490/year total

Scenario B: Monthly NEM 3

• 12 times your monthly summary + $15 connection fee
• Example: $0 net-bill most months, $40 credits in high production, small $20 charges in winter

Annual Total: still under $500

What Happens if You Undersize Your Battery?

Without sufficient storage:

• You export more solar power at wholesale rates
• You end up buying energy at retail rates
• That mismatch eats into your savings
• Monthly bills creep up—and your investment loses its punch

A 10 kW system needs at least 20–25 kWh of usable battery to prevent this.

What If You Oversize?

You’ll store and use much more of your solar production—especially beneficial under NEM 3.
You might pay slightly more upfront, but you’ll avoid costly grid draws more often.
Over time, savings compound—especially with rising PG&E rates.

Real‑World Fresno Example

Let’s say you’re a typical Fresno homeowner:

• 8 kW solar system
• 20 kWh battery
• Annual usage: 12,000 kWh
• PG&E rate: ~$0.43/kWh retail, $0.22 average with NEM 3
  Result?
• Monthly bills hover around $5–$25
• Small annual net charges for connection or low usage months
• Total yearly outlay: ~$240–$300

That beats the $260–$300/month electric bill you had before… by a mile.

Upgrades for NEM 1/2 to NEM 3

If you’re under old net-metering rules, you can still stay there—your rates are grandfathered for 20 years.
But if your system is old or small, it may not cover rising usage. Adding a battery:

• Allows you to lower true-up charges
• Helps you upgrade your system
• Preps you if you ever leave or modify your solar agreement

Conclusion: Your Solar Bill Depends On…

1. Which NEM policy you’re under
2. System size and battery storage
3. Usage habits and consumption times

But no matter your policy, a well-designed system keeps annual electricity costs under $500/year—a far cry from the $200–$900/month PG&E charges.

Ready to Lock In Low Energy Costs?

At Supreme Solar and Electric, we build systems that work with your utility policy—not against it. Whether you’re under NEM 1, 2, or 3, we’ll:

• Design a system that offsets usage throughout the year
• Size your battery for maximum night-time coverage
• Show you exactly what your monthly and annual bills will look like

Get your free custom proposal today —and let’s get your solar bill as close to $0 as possible.

📞 Call or text (559) 549-5638
📩 Request a quote now — and say goodbye to unpredictable energy bills!