What is the method that is used to come to a final amount owed?
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Every house has an electric meter that reads the amount of power delivered to the house. The power company checks the meter (usually once a month), to see how much power you used to charge you appropriately. With the advent of smart meters, many utility companies in the US will also charge different rates depending upon the time of day–for example you’ll pay more during the hottest part of the day when power use is at a maximum than you will in the middle of the night. The purpose behind time based rates is to encourage people to spread their power usage out.
If you have solar, then you will get a bill for your utility company’s minimum delivery charge. At the end of the year they calculate the total credits and usages and give you a final bill. If you used more than the minimum delivery charge then you pay the difference then. If you used less, then you don’t get any money back, but do not owe any more. With PG&E at least (although I suspect they all do this), you get a credit for energy you produce in excess of you usage. This will count against you usage (in your favor), but they will not give you money if your credits exceed you usage.
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