what is true up charges in electricity bill

A true-up statement is an annual statement that combines all of a customers annual power charges and credits into a single invoice. It reconciles all the cumulative energy charges and credits and compensation for an entire 12-month period. The statement provides a customers net energy charges and credits over the entire year and shows any final balance due. If there is an outstanding balance after all charges and credits have been reconciled, it will display on the true-up statement. The true-up bill gathers and reconciles a customers yearly, cumulative energy costs, credits, and any net generation compensation for the billing period. The amount of true-up charges each year is determined by the difference between the amount of electricity a customers system generates throughout the month and the amount of electricity they use. The true-up bill might be perplexing for many property owners, but it is an essential part of the billing process for solar customers.