Solar Bill With Charges + Federal Tax Credits Expire Dec 31

You just bought your dream home. Solar panels were already installed. You check your utility bill and see—much to your surprise—that you're generating more electricity than you're consuming. Your new graph shows all those beautiful green energy bars flowing from your roof. Yet there's still a charge on your bill. A $6.27 charge to be precise.

If you're scratching your head wondering if something is wrong, you're not alone. Thousands of new solar homeowners face this exact confusion every month. The good news? That $6.27 bill is actually proof that your solar system is working beautifully—and that bill is completely reasonable.

Let me explain why, in plain English, so you understand exactly what's happening with your solar panels and your electricity bill.

The Hidden Truth About Solar Billing: It's Not Just About the Electricity You Use

When you have solar panels connected to the grid, you might assume that if you generate more electricity than you consume, you shouldn't have to pay anything. Logical thinking, right? But utility billing is more complicated than that.

Your electric bill isn't just one number. It's actually a combination of several charges bundled together—and only part of that bill is based on the electricity you actually use.

Why You Still Pay Even When Your Panels Generate More Power

Here's the reality: Solar panels can eliminate your usage charges, but they cannot eliminate mandatory fixed fees.

Think of it like this: your utility company has costs that exist regardless of how much power flows through the grid. They need to maintain the infrastructure that keeps the power flowing to your home 24/7—whether you're using electricity or generating it.

These costs don't disappear just because your solar panels are working hard. Someone still needs to maintain the power lines, the transformers, the poles, and the substations that allow you to stay connected to the grid. These infrastructure costs are bundled into your bill as fixed charges.

The Four Main Charges on Your Electric Bill (And How Solar Affects Each One)

1. Energy Usage Charges (The Part Solar Eliminates)

This is the charge for kilowatt-hours (kWh) of electricity you actually consume. This is what solar panels eliminate most directly.

When your panels generate more power than you use during daylight hours, that excess energy flows to the grid. Through a system called net metering, your utility credits you for that excess power. Those credits then offset the electricity you draw from the grid at night or on cloudy days.

However, California switched to a new net metering system called NEM 3.0 in April 2023. Under this system, the credit you receive for excess solar energy is based on the "avoided cost" of electricity—not the full retail rate. This means if you send power back to the grid at 2 PM (when lots of other solar panels are also sending power), the utility pays you less per kilowatt than you'd pay to draw power at 6 PM (peak demand hours).​

The impact is significant: under NEM 3.0, solar exports are credited at an average of just $0.08 per kWh—down roughly 75% from the $0.30 per kWh rate under previous net metering programs. This is why even with high solar production, you might still have some energy charges if the timing of your production doesn't perfectly match your consumption patterns. To fully understand how this affects your long-term savings, explore battery storage solutions that can help maximize your returns by storing excess daytime production for evening use.​

Learn how to addresses NEM 3.0 timing mismatch solution.

2. Base Services Charge (The Fixed Monthly Fee—This Is Probably Your $6.27)

As of November 2025, Southern California Edison (SCE) customers are now charged a Base Services Charge of $24.15 per month for regular residential customers.

This is the big one. This monthly fixed fee covers the cost of maintaining the grid infrastructure that keeps your home connected to the electrical system. It's not based on how much power you use or generate—it's a flat fee that applies to everyone.​

This charge was approved by the California Public Utilities Commission under Assembly Bill 205, which was passed in 2022. The intent was to separate fixed grid maintenance costs from variable energy usage costs to make rates more predictable and encourage electrification.​

For low-income households enrolled in assistance programs:

• CARE customers: $6.00 per month
• FERA customers and deed-restricted affordable housing: $12.08 per month​

If your bill is $6.27, it's likely composed of this Base Services Charge (prorated for partial month) plus some small non-bypassable charges (explained below). This is an excellent outcome for a new homeowner's first solar bill.

3. Non-Bypassable Charges (Small Per-kWh Fees You Can't Avoid)

These are per-kilowatt-hour charges of typically $0.01 to $0.04 that fund grid maintenance and public policy programs. They're called "non-bypassable" because they apply to all electricity—both power you buy from the grid AND power your solar panels generate and send back to the grid.

These small charges add up over the course of a billing period but are relatively minimal compared to base charges.

4. Taxes and Regulatory Fees

Your bill also includes sales tax and other regulatory fees that are required by law. These are typically small percentages applied to your total bill.

Why Your Solar System Producing "More Than You Use" Doesn't Mean Zero Bill

Here's the key misconception: "producing more than you use" and "having zero usage charges" are two different things.

Let's break down a real-world example:

Scenario: Your November 2025 Bill

• Solar panels generated: 650 kWh during the month
• Electricity you consumed: 520 kWh during the month
• Net generation: +130 kWh excess

On the surface, you generated more than you used. You might expect $0 owed. Instead, you got charged $6.27.

Here's why:

1. Timing mismatch: Those 650 kWh were generated mostly between 10 AM and 2 PM when the sun is strongest. But you probably consumed electricity spread throughout the day—and especially in the evening when solar production drops. So while you generated more total kWh, you didn't generate kWh exactly when you needed them.
2. NEM 3.0 credits: The 130 kWh you sent back to the grid during midday gets credited at the "avoided cost" rate (approximately $0.08/kWh in Southern California). That's only about $10.40 in credits. But the 520 kWh you consumed was purchased at retail rates (about $0.25–$0.35/kWh in SCE territory). The credits don't cover all your consumption.​
3. Fixed charges: Regardless of your energy usage, you owe the Base Services Charge ($24.15) and non-bypassable charges (varies but roughly $2–$5).

In this scenario:

• Your base fixed charges: ~$26
• Your energy charges (520 kWh × ~$0.30): ~$156
• Your solar credits (130 kWh × ~$0.08): -$10.40
• Result: ~$172 bill

But wait—you said your bill was only $6.27. This suggests a different situation happened on your first bill after purchasing. Let me explain that possibility.

Why Your First Month Might Show a Lower Bill

Your $6.27 bill might be explained by a few factors specific to new homeowners:

Scenario A: Partial Month Billing

When you purchased the home, the previous owner's account was closed and your new account was opened. This often triggers a proration—where you're only billed for the days you've been there as the account holder.

If you just closed 3 days ago, you've only been on the bill for a few days. The fixed charges might be prorated (roughly $24.15 ÷ 30 days = $0.805/day × 3 days = $2.42), plus small usage and non-bypassable charges totaling around $6.27.

Scenario B: Net Metering Account Transfer Delay

When you buy a home with existing solar panels, the net metering account needs to be transferred to your name. Until this happens, you might not be receiving full net metering credits on your bill.

Many new homeowners' first bill shows charges because the solar system hasn't yet been officially transferred in the utility's system. Once it's transferred (usually 2–4 weeks after closing), you'll see your net metering credits appear on subsequent bills. For more details on managing this transition, review comprehensive guides on the complete handoff process when inheriting an existing system.​

Scenario C: Delayed Billing Cycle

Utilities often delay bills for account transfers. Your first month might reflect fewer days of actual usage while the system caught up.

What You Should Expect on Future Bills

Don't worry—your $6.27 is likely an anomaly. Here's what to expect going forward in Southern California:

Scenario 1: Typical Winter Month (December–February)

• Base Services Charge: $24.15
• Non-bypassable charges: ~$3–$5
• Energy charges (assuming standard consumption): $40–$60
• Solar credits (winter production is lower): -$20–$30
• Typical winter bill: $37–$59

Scenario 2: Typical Summer Month (June–August)

• Base Services Charge: $24.15
• Non-bypassable charges: ~$3–$5
• Energy charges: $30–$50
• Solar credits (maximum production): -$50–$100
• Typical summer bill: May show a $0 charge or CREDIT that rolls forward

During peak solar production months, many Southern California homeowners see their bills drop to $0 or even show credits that carry over to future months. During winter, bills increase because solar production decreases while energy consumption (heating, holidays, etc.) increases. SCE's October 2025 rate increase of $22.06 per month for many customers makes solar even more valuable during these peak billing months.​

Read more about Homeowner's guide to buying solar panels in Southern California.

Making Sure Your Solar System Is Set Up Correctly

Since you just purchased this home, here are critical steps to ensure you're getting all the benefits you should:

1. Confirm Solar System Registration with Your Utility

Call Southern California Edison (or your local utility) and verify that:

• Your solar system is registered under your account (not the previous owner's)
• You're enrolled in NEM 3.0 (or NEM 2.0 if the system was installed before April 15, 2023)
• Net metering credits are being applied to your account

SCE Customer Service: 1-800-655-4769

Note: If your system was installed before April 15, 2023, and the previous owner obtained their interconnection approval before that date, you may be grandfathered into NEM 2.0 pricing, which provides significantly better returns (approximately $0.30/kWh instead of $0.08/kWh). This is a major advantage worth protecting, so confirm your NEM version immediately.​

2. Get a Solar System Inspection Report

Ask the solar company or the previous owner for the system inspection report. You want to confirm:

• Panel count and wattage
• Inverter specifications
• System age and warranty status
• Annual expected output
• Installation date (critical for determining NEM version eligibility)

3. Review Your Bill Carefully

Once the system is properly registered, your bills should show:

• Delivered Energy: kWh you purchased from the grid
• Delivered Energy: kWh you purchased from the grid
• Net Energy Metering Credit: kWh your system sent back to the grid and the dollar credit applied
• Base Services Charge: The $24.15 monthly fixed fee
• Non-bypassable charges: Small regulatory charges

If you don't see a "Net Energy Metering Credit" line item on your bill within 4 weeks of purchasing, contact your utility immediately.

The Bottom Line: Your $6.27 Is Actually Great News

That $6.27 bill you're seeing? It's probably the best first bill a solar homeowner could get. Here's why:

1. Your system is working: Your panels are generating power and feeding it back to the grid.
2. Your fixed costs are low: That $6.27 likely represents just the base services charge and regulatory fees—meaning all your energy consumption was covered by solar credits.
3. Your future bills will be predictable: Once everything settles, you can expect low to moderate bills in winter and low to zero bills in summer.
4. You're taking advantage of net metering: Even under NEM 3.0, net metering still saves Southern California homeowners significantly over the system's lifetime. The average SCE customer with solar saves $1,700 annually and achieves payback in 7.5 years, with 25-year lifetime savings of approximately $32,000.​

The confusion you're feeling is completely normal. Most new homeowners are surprised to learn that solar doesn't eliminate 100% of electricity bills. But understanding why—and knowing what to expect—means you can feel confident about your solar investment.

Your bottom line: You're not paying more; you're paying for the privilege of staying connected to the grid while your solar panels do the heavy lifting.

Next Steps: Maximize Your Solar Investment in Southern California

If you're curious about adding even more to your solar setup or want to understand optimization opportunities, consider these options:

Solar Battery Storage

Pairing your existing solar panels with battery storage can help you store excess solar energy for evening use, potentially reducing your bills even further. Southern California offers the Self-Generation Incentive Program (SGIP), which provides rebates for battery storage.​

2025 SGIP Rebate Levels for Residential Battery Storage:

• Equity-level rebates (low-income homes): $1,100/kWh for battery + $3,100/kW for paired solar
• General residential rebates: $150–$500/kWh depending on current step levels
• High fire-risk area rebates: $1,000/kWh
• Specific city programs: Up to $1,100/kWh​

For a typical Tesla Powerwall 3 (13.5 kWh), standard rebates range from $2,025–$6,750, while low-income households in equity programs can receive up to $13,500. For comprehensive information on battery integration, refer to complete guides on solar and battery storage solutions.

Qcells Partnership Advantage: American-Made Quality

If you ever need to expand or upgrade your solar system, look for installers offering Qcells solar panels through factory-direct pricing. Qcells represents the smartest solar panel choice for Southern California homeowners in 2025:

Qcells Performance Specifications (2025):

• Efficiency Rating: 19–22.5% (with newest Q.TRON models reaching 22.5%)​
• Durability: Panels retain 85%+ power output after 25 years; newest TRON series guarantees 91% output​
• Warranty: 25-year performance warranty and 25-year product warranty
• Cost: Competitive pricing at $0.70–$0.80 per watt
• American-made: Manufacturing facilities in United States support local economy
• Weather tolerance: Withstand 180 mph winds, superior low-light and high-temperature performance​

Qcells has become America's #1 choice for solar panels, combining German engineering with American manufacturing and competitive pricing that factory-direct partnerships provide.​

URGENT: Federal Tax Credit Expires December 31, 2025

Critical deadline alert: The federal solar tax credit landscape has changed dramatically. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, accelerated the end of the residential solar tax credit.​

Key changes as of November 2025:

• Residential solar installations completed by December 31, 2025: Qualify for 30% federal tax credit​
• Installations after January 1, 2026: NO federal tax credit available (ends entirely with no phase-down period)​
• Impact on system cost: For a typical 5 kW system costing $11,759, the 30% credit saves homeowners $3,528​
• Payback period difference: Systems installed before year-end achieve payback in 4.3–7.5 years; installations after January 1, 2026 extend payback to 6.1–9.3 years (roughly 1.8–1.8 years longer)​

This is one of the most significant policy changes for solar in a decade. If you're considering battery storage expansion, act immediately—installations completed by December 31, 2025 qualify for the 30% credit on battery costs as well.

Economic impact: Homeowners who wait until January 2026 will pay approximately $3,500 more for an identical system compared to installations completed in December 2025.​

Your Solar Journey Starts with Understanding

Buying a home with existing solar panels is a smart choice. Instead of paying $20,000–$30,000 to install a new system, you've inherited a working energy-generating asset that will likely save you $30,000–$40,000 over its 25-year lifespan—even with NEM 3.0 rates.​

That $6.27 bill? It's simply the cost of grid access—a small price to pay for reliable electricity and the satisfaction of knowing your home is generating clean energy.

Welcome to solar living. You're going to love it.

Ready to Learn More?

Questions about maximizing your solar investment? Interested in adding battery storage before the December 31, 2025 federal tax credit deadline or understanding your system better? Southern California homeowners have unique incentives and opportunities available right now—but many are time-sensitive.

Get Your Free Solar System Assessment Today‍

Understand your energy production, verify your NEM version, optimize your setup, discover available rebates, and learn exactly how much you'll save before these historic incentives expire.

Questions Solar Homeowners Often Ask

Q: Will my bill ever be $0?
A: During peak production months (June–August), your bill might drop to $0 or show credits. However, base services charges remain mandatory under current California regulations ($24.15 for standard residential customers), so you'll always have some minimum charge.

Q: Why is my bill higher in winter?
A: Solar production drops significantly in winter due to shorter days and lower sun angles. Meanwhile, energy consumption often increases due to heating and holiday usage. This creates a seasonal pattern where winter bills are highest and summer bills are lowest. For strategies to manage this, strategies exist to smooth seasonal fluctuations through battery storage, which can store summer excess production for winter use.​

Q: Do I need to do anything special to maintain my solar panels?
A: Solar panels are remarkably low-maintenance. Occasional cleaning (especially after dust storms) can help, but most homeowners simply let rain handle it. Annual professional inspections (often included with monitoring services) are recommended to ensure optimal performance.​

Q: What if I'm not seeing net metering credits on my bill?
A: Contact your utility immediately. This usually means the solar system hasn't been properly registered to your account. Most utilities have a 4-week window for this transfer when a home is sold. SCE's customer service number is 1-800-655-4769.

Q: Is my system grandfathered into NEM 2.0 or NEM 3.0?
A: This is critical. If your system received interconnection approval before April 15, 2023, you're protected under NEM 2.0 rates even if you're a new owner (pending proper transfer). If it was approved after April 15, 2023, you're under NEM 3.0. Verify this with your utility—the difference is approximately $0.22 per kWh in credits (huge over 25 years).

Disclaimer: Information current as of November 2025. Solar incentives, utility rates, and tax credits change frequently. Consult with local solar providers and tax professionals regarding your specific situation. This content is for informational purposes and should not be considered personalized financial or tax advice.