Mastering the complexities of Pacific Gas & Electric (PG&E) billing is essential for California solar owners. One of the most critical yet frequently overlooked decisions you can make is selecting the optimal true-up bill month choice for PG&E NEM 3.0 customers.
Every 12 months, PG&E issues an annual true-up bill. This reconciliation process calculates exactly how much electricity your solar panels sent to the grid versus how much power your household pulled from the grid. Depending on the month this cycle ends, you could either receive a small check or be slapped with a massive, unexpected utility bill.
In this comprehensive 2026 guide, we will break down the mechanics of the annual true-up under the harsh new NEM 3.0 framework. You will learn why spring true-ups are historically the safest option, how battery storage fundamentally changes the equation, and exactly how to contact PG&E to change your billing cycle.
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How the PG&E Annual True-Up Works
When you install solar in California, you are placed on a specialized 12-month billing cycle. Every month, you receive an energy statement that shows your net grid usage. However, instead of paying for your electricity consumption every month, the charges (or credits) are tallied up and carried forward.
At the end of your exact 12-month cycle, PG&E issues a true-up bill. If you drew more electricity from the grid than your rooftop solar panels produced, you must write PG&E a check for the balance. If you produced more energy than you used, PG&E wipes your credit balance to zero and issues you a small Net Surplus Compensation check.
By default, your true-up month is determined by the day you were granted Permission to Operate (PTO) by PG&E. If your solar was turned on in October, your true-up month is October forever—unless you intervene.
NEM 3.0 Impact on True-Up Credits
Under the old NEM 1.0 and NEM 2.0 structures, energy sent to the grid was credited at a 1-to-1 retail rate. You could easily over-produce in the spring and use those valuable credits to offset heavy air conditioning usage in the summer.
Under the new NEM 3.0 (Net Billing Tariff) rules effective since 2023, the value of energy exported to the grid has been slashed by roughly 75%. PG&E now credits your solar exports at a variable, wholesale rate. This means it takes roughly four solar panels worth of exported energy to pay for just one panel's worth of grid consumption.
Consequently, relying on seasonal credit banking is a mathematically flawed strategy under NEM 3.0. A poorly timed true-up month can leave you exposed to devastating true-up bills because your exported energy is virtually worthless during peak daylight hours.
The Best True-Up Months in California
Because the value of grid exports is so low under NEM 3.0, the strategy for choosing a true-up month centers entirely around risk mitigation. The goal is to start your 12-month billing cycle right before your highest usage season, so you can pay off any massive energy deficits with whatever small solar credits you generate later in the year.
- April and May: Setting your true-up in late spring is highly recommended. It allows you to enter the heavy summer air conditioning season at the start of your billing cycle. Any massive deficits accrued in July and August can slowly be chipped away by cooler, sunny days in the autumn and winter.
- March: A late winter true-up is also acceptable. It ensures that the heavy burden of electric space heaters or heat pumps during winter does not crash into a true-up deadline when you have zero credits banked.
By placing your true-up right before your consumption spikes, you give yourself the maximum runway (an entire year) to offset those charges before the final check is due.
The Worst Months to True-Up
Conversely, the worst time to face a true-up bill is immediately after your season of highest consumption. If your home uses massive amounts of air conditioning, a September or October true-up is incredibly dangerous.
If your true-up lands in October, the massive energy deficit you racked up in July, August, and September becomes due immediately. You have no subsequent months of cool, sunny weather to generate offsetting credits. You will be forced to write PG&E a check for thousands of dollars right before the holiday season.
The same logic applies to winter. If you heat your home with electricity, a February true-up will force you to pay for all of your December and January heating usage immediately, with zero runway to recover.
Why Battery Storage is Now Mandatory
While shifting your true-up month can mitigate the shock of an annual bill, the only true defense against PG&E under NEM 3.0 is a home battery system, such as a Tesla Powerwall 3 or an Enphase IQ Battery.
Because PG&E pays you pennies for energy sent to the grid, the smart strategy is to never send energy to the grid. Instead, your solar panels should charge your home battery during the day. When the sun goes down and PG&E switches to expensive peak rates (4 PM to 9 PM), your home seamlessly pulls power from your own battery.
By self-consuming 100% of the energy you generate, you render the true-up month largely irrelevant. You will simply pay your standard $15 monthly grid connection fee, and your annual true-up balance will remain essentially at zero.
How to Request a True-Up Month Change
PG&E allows solar homeowners to change their true-up month exactly once during the lifespan of their account. The process is administrative but requires speaking directly with the solar department.
To initiate the change, call the PG&E Solar Customer Service Center at 1-877-743-4112. Explain that you wish to execute your one-time true-up month adjustment. They will process the request on the phone.
Warning: Changing your true-up month will trigger an immediate, early true-up bill. For example, if you change your cycle from October to April, PG&E will instantly true-up your account for the period between your last true-up and the current date. Ensure you are prepared to pay any standing balance before making the call.
Frequently Asked Questions
Q: What is a PG&E true-up bill?
A: A PG&E true-up bill is an annual reconciliation of your solar energy production versus your household consumption. It determines if you owe money for excess grid usage over the year or if PG&E owes you for excess generation.
Q: Can I choose my PG&E true-up month under NEM 3.0?
A: Yes. As a PG&E solar customer, you have a one-time opportunity to contact customer service and manually change your annual true-up month to better align with your energy usage patterns.
Q: What is the best true-up month for California homeowners?
A: For most homeowners, setting the true-up month at the end of spring (April or May) is ideal. This allows your system to build up excess energy credits during sunny spring months before the heavy air conditioning usage of summer depletes them.
Q: How does NEM 3.0 change the true-up process?
A: Under NEM 3.0, export rates for excess solar sent to the grid are drastically lower. This makes your true-up balance highly dependent on battery storage rather than simply over-producing solar power during the day.
Q: What is Net Surplus Compensation (NSC)?
A: If you produce more energy than you consume over the entire 12-month true-up cycle, PG&E pays you for the excess at the Net Surplus Compensation rate, which is typically a low wholesale rate (around 3 to 5 cents per kWh).
Q: Will changing my true-up month affect my NEM 3.0 status?
A: No. Simply changing your billing true-up month is an administrative adjustment and does not void your grandfathered NEM status or alter your foundational interconnection agreement.
Q: Can I pay my true-up balance monthly instead of annually?
A: While the final reconciliation happens annually, PG&E encourages solar customers to make monthly payments toward their estimated true-up balance to avoid a massive, unexpected bill at the end of the year.
Q: What happens to my true-up credits if I sell my home?
A: When you sell your home and close your PG&E account, an immediate true-up is triggered. Any accumulated credits will be paid out to you, and the new homeowner will start with a fresh 12-month billing cycle.
Q: Why is a winter true-up month risky?
A: If your true-up lands in February or March, you risk owing a massive sum right after winter, when solar production is lowest and household heating usage (if electric) is highest, giving you no sunny months to offset the debt.
Q: How do I request a true-up month change with PG&E?
A: You can request a true-up month change by calling PG&E's dedicated solar customer service line. Keep in mind that doing so will trigger an immediate, early true-up bill for your current cycle.
Sources & Reference Standards
- PG&E Solar Billing Guidelines: https://www.pge.com
- California Public Utilities Commission (CPUC) NEM Data: https://www.cpuc.ca.gov
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