First Solar Bill Explained Calculator

See your first 3 months of solar bills side-by-side — connection charges, export credits, NEM bank balance, and why you still got a bill.

$
kW
Line ItemBefore SolarMonth 1
(Apr — partial)
Month 2
(May — full)
Month 3
(Jun — full)
Connection charge$10.00$10.00$10.00$10.00
Solar production516 kWh1,152 kWh1,257 kWh
Grid import charges$140.00$77.76$11.26$25.92
Export credits (14¢/kWh)-$0.00-$11.26-$25.92
NEM bank balance (rolling)$11.26$37.18
Net bill due$150.00$87.76$10.00$10.00
Annual Settled Picture
$162.16 / year
Annual production12,556 kWh
Annual savings$1,757.84
Grid export0 kWh
Grid import301 kWh
Why you still got a bill in month 1
Your system was only active for ~15 days of month 1, producing 516 kWh instead of a full month. The connection charge ($10/mo) never goes away regardless of solar — it pays for poles, wires, and meter infrastructure.
What's the "bank balance" on your bill?
Under full retail NEM, excess solar credits are "banked" — they accumulate month over month. At your annual true-up, the utility settles the balance. Your Jun bank balance of $37.18 will grow in summer and draw down in winter.

How to Use This Calculator

Enter your pre-solar bill

Enter your average monthly electric bill before solar was installed. This establishes your baseline consumption in kWh and the savings potential for your system.

Enter system details

Enter your system size (from your installation contract or monitoring app), select your city for seasonal production data, and choose the month your system was activated — the PTO (Permission to Operate) date on your utility approval letter.

Select your net metering type

This is the most important input for post-solar bill accuracy. Check your utility's net metering policy: Full retail NEM means exported kWh credit at the same rate you pay to import. Avoided cost means exports earn only 3–5¢/kWh. No NEM means excess solar has zero monetary value.

Read the month-by-month table

The table shows all bill line items across three months — including the connection charge that never disappears, solar production, grid charges, export credits, and the NEM "bank balance" that accumulates under full retail net metering.

Anatomy of Your Post-Solar Bill

Most solar owners are surprised by their first bill. Here's every line item explained:

Line Item What It Means Goes Away With Solar?
Customer/connection charge Fixed monthly fee for grid access — poles, wires, meter No — always there
Energy charges Electricity you imported from the grid (kWh × rate) Partially — solar offsets this
Solar export credit kWh you sent to grid × export rate (NEM type) N/A — appears after solar
NEM bank balance Accumulated credits rolled over month to month N/A — only with retail NEM
Annual true-up Annual reconciliation of credits vs charges N/A — replaces monthly billing
Delivery charges Distribution infrastructure costs Usually no
Demand charge Commercial accounts only — peak 15-min power draw Partially with battery

The 3 Most Common Post-Solar Bill Confusions

"Why did I still get a bill?"

You will almost always get a bill after going solar — just a much smaller one. The connection charge ($5–$25/month depending on utility) covers your physical grid connection and never goes away regardless of solar production. Additionally, if your system doesn't fully offset 100% of consumption, you'll still pay for grid imports at night and on cloudy days.

"What's this bank balance I'm carrying?"

Under full retail NEM, when you export more than you import in a month, the excess credits don't convert to a cash payment — they roll into a "bank" on your utility account. This bank accumulates through summer (high production) and draws down in winter (high consumption). At your annual true-up date, the utility settles the final balance — often at a lower "avoided cost" rate for any remaining credit, depending on your tariff.

"Month 1 was disappointing — is my system working?"

Month 1 is almost never representative. Your system was only active for a portion of the billing period — often 15–20 days. Production is prorated. The connection charge represents a larger fraction of a shorter production period. Give it 3 full months before judging system performance. Use your monitoring app (Enphase Enlighten, SolarEdge, SMA) to verify daily production matches your installer's estimates.

How Post-Solar Bills Are Calculated

Monthly production = System kW × Location PSH × Month factor × System efficiency × Days Net bill = Connection charge + (Grid imports × Import rate) - (Exports × Export rate) Example: 8 kW system in Denver, June install Month 1 (partial, 15 days): 8 × 5.0 × 1.20 × 0.86 × 15 = 620 kWh produced Month 2 (July, full): 8 × 5.0 × 1.15 × 0.86 × 30.44 = 1,206 kWh produced If home uses 1,000 kWh/month: Month 2 grid import: max(0, 1000 - 1206) = 0 kWh Month 2 export: max(0, 1206 - 1000) = 206 kWh → $28.84 credit at $0.14/kWh Month 2 bill: $10 connection + $0 import - $28.84 credit = $-18.84 (bank credit)

FAQ

Typically 2–3 months after installation. Month 1 is always partial (PTO usually happens mid-cycle). Month 2 is your first full solar month. If you installed in spring or summer, month 2 will look great. If you installed in winter, expect smaller first-year savings that grow dramatically the following spring. The clearest picture comes after your first full 12-month cycle — your annual true-up will show total savings vs. pre-solar costs.
Yes — under most retail NEM programs, credits accumulate as bill credits, not cash. They roll over month to month within your annual true-up period. If you have a large credit balance at true-up, the utility may pay you at a lower "avoided cost" rate (4–8¢/kWh), not the full retail rate. This is a key design consideration: avoid over-sizing your system if your utility's true-up rate is unfavorable. A battery + right-sized system beats a large export strategy in most modern tariff designs.
The annual true-up is a once-a-year bill that settles your NEM account — typically on your anniversary month of solar activation. The utility looks at 12 months of solar production vs. grid imports and calculates what you owe or are owed. If your system produced less than it consumed, you pay the difference at the import rate. If it produced more, the utility pays you — but usually at a low avoided-cost rate. Many homeowners owe $0 or a small amount at true-up. The connection charge is typically billed monthly throughout the year regardless.
Two reasons compound in winter: (1) Solar production drops 40–60% from its summer peak as days shorten and sun angles flatten. (2) Home energy consumption often rises with heating, less daylight, and more time indoors. Even a well-designed system that fully offsets summer consumption will only cover 50–70% of winter consumption in most US climates. This is normal and expected — your system is sized to annual average, not winter-specific production.
Avoided-cost NEM (3–8¢/kWh for exports) instead of retail NEM (~14¢/kWh) lengthens payback by 1–3 years in most cases — it doesn't eliminate solar's value. The key is right-sizing: a system that covers ~80–90% of your consumption with minimal export is still highly profitable. The economics change when systems are massively over-sized with lots of export. California NEM 3.0 (2023) is the most aggressive example — it drove up battery additions because storing solar for self-consumption is now worth more than exporting it.

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