Net Energy Metering (NEM) is a program for SDG&E homeowners and businesses with solar electric or wind generating energy systems. Through interconnection with the power grid and your time-of use meter, the net difference between the energy generated by your renewable energy system and the energy you receive from SDG&E is measured.
If you produce more energy than you use, you can bank the credits and use them at a later time when your system is not fully meeting your electricity needs. You are allowed 100% of your total annual consumption of the energy that you have stored on the grid. At this time, you cannot “sell” any surplus energy you may have stored back to SDG&E at the end of your 12-month cycle.
This annual program automatically renews at the end of each 12-month cycle. If you receive both natural gas and electric service from SDG&E, you will receive two bills; one for natural gas and one for electricity.
You will need to continue paying both your gas and your electric bills each month. If you are a low-usage customer (under 20 kW,) then you have the option to pay your electric bill just once every twelve months.
On May 1, 2008, SDG&E introduced an optional time-of-use rate (Schedule DR-SES) that’s available for residential customers with solar electric generation systems. DR-SES differs from the standard, tiered residential rate that most solar energy homes are on.
The standard residential rate charges a fixed price per kilowatt-hour (kWh) that increases as electricity use builds during a monthly billing period. So when excess electricity produced by your solar system is credited to you, it’s for the same fixed price in the tier that it was produced.
With a time-of-use rate like DR-SES, the price of electricity varies according to on-peak, semi-peak and off-peak use time periods (see the table below). Depending on your energy usage throughout the day and the amount of electricity produced by your system, you may be able to reduce your annual energy costs
During on-peak hours, especially during the summer months when a solar system is likely producing electricity at its maximum output, the price of energy is much higher than it is at other times. This means that every excess kilowatt-hour your system generates is credited to your account at the higher rate during the on-peak period.
By reducing your energy consumption during the on-peak period, your solar system sends the energy you produced to SDG&E’s system and credits you. The higher credits you receive can offset the cost of electricity during times when your solar system is not meeting your full energy needs and you’re using electricity from SDG&E.
Keep in mind, if you use more on-peak electricity than your solar system produces, you’ll be charged the higher rate for the energy you use. It’s possible your bill could end up being higher than it would have been under the standard residential rate.
Before deciding to switch to this new rate, SDG&E encourages you to do a self-analysis of your energy use patterns. Estimate how much energy you use and how much energy your solar system produces during the various time periods provided in the chart below.
If your electricity use during on-peak hours (11 am – 6 pm weekdays) is lower than the amount your solar system is producing, this rate could help lower your annual electricity costs. A simple way to do this is to read your electric meter at 11 am; read your meter again at 6 pm and then subtract the first reading from the later reading.
The result will tell you how much energy you used from SDG&E (a positive number) or how much excess energy your solar system sent to SDG&E’s system (a negative number).
The time periods, seasons and costs below can help you to do your analysis to determine if this rate is right for you.
Time Periods |
|
Summer on-peak |
11 am - 6 pm, Mon - Fri, except holidays |
Summer semi-peak (except holidays) |
6 am - 11 am and 6 pm - 10 pm, Mon - Fri |
Summer off-peak |
10 pm - 6 am, Mon - Fri and all hours on weekends and holidays |
Winter semi-peak |
6 am - 6 pm, Mon - Fri, except holidays |
Winter off-peak |
6 pm - 6 am, Mon - Fri and all hours on weekends and holidays |
Seasons |
|
Summer |
May 1 – October 31 |
Winter |
November 1 – April 30 |
Kilowatt-hour costs |
|
Time-of-Use Meter Charge |
$3.81 per month |
Summer on-peak |
$0.29748 per kWh |
Summer semi-peak |
$0.19356 per kWh |
Summer off-peak |
$0.17344 per kWh |
Winter semi-peak |
$0.18628 per kWh |
Winter off-peak |
$0.17560 per kWh |
If you would like to apply, fill out the application linked below and e-mail or fax it according to the instructions on the form.
Note: there are two forms below. Most customers will need the ‘DR to DR-SES’ form.
As soon as we receive your request, SDG&E will schedule a technician to change your existing meter with a meter that measures the amount of energy you use and the amount of energy your solar system sends back to us.
Cash rebates may be available for eligible solar electric, photovoltaic or wind systems. Here are two incentive programs available to SDG&E customers.
If your system is 1000 kW or less then the Net Energy Metering (NEM) tariff may apply.
For additional rates and tariffs applicable to self-generation projects go to our Self-Generation projects rates and tariffs page.
Each customer installing a photovoltaic, solar electric and/or wind generating system is required to submit a set of documents for interconnection.
Please note that a different application is used for systems that will be generating greater than 30 kW.
Choose the application suitable for the size of the system being proposed.
- Am I eligible for Net Metering?
- What are the Benefits of Net Metering?
- How Does Net Metering "Store" My Electricity?
- Can I Use My Current Electric Meter for Net Metering?
- How Do I Sign Up for Net Metering?
- Will SDG&E Pay Me Full Retail Rates for My Excess Electricity Generation above 100% of my annual Consumption?
- Are there any special inspections or fees to get my system hooked up the electric grid?
- Will the electricity I might still need to buy from SDG&E cost me more than before I became a Net Metered customer?
- Whom do I contact with questions?
Any SDG&E residential or commercial electricity customer who generates at least some of their electricity is eligible for net metering. The two basic eligibility requirements are:
- Your electricity generating system must be powered by solar or wind energy or a combination of the two
- Your system must not exceed 1 Megawatt of peak power output.
You receive full retail rate for excess power
Net metering allows you to get full retail value for the electricity you produce. It does this by permitting you to put any excess electricity you generate back into the electric grid and retrieve it later, free of charge.
Your excess electricity now offsets electricity you would otherwise have to buy at full retail prices. This makes owning your own generating system even more cost effective.
You can only get the full retail value for electricity equal to 100% of your total annual consumption.
You can "store" power on the grid
Because you get credit for your excess power generation, there is no immediate need for batteries to store energy for use in the evening when your system is not generating power.
Net Metering allows you to use SDG&E's electric grid as a big battery. There could be times when your PV system will be producing more electricity than your home or business demands at that moment.
Under Net Metering, during these times, power is fed back into SDG&E's grid to be used by others and you can take this same amount of electricity back out of the electric grid at a later time. Net Metering permits you to "bank" your excess electricity and then withdraw it from the grid free for you use at a later time.
Generally, yes. Most residential and small commercial customers have simple meters that are already capable of turning in both directions.
For larger commercial systems, we may want two meters for net metering. A special billing meter to measure all the electricity flowing into your business from the grid and the excess you are putting into the electric grid, and, a net generator output meter to measure the electricity generated by your system.
When you decide to install a photovoltaic or wind generating system, contact SDG&E to request Net Metering. The sooner you contact us, the sooner you can get your system approved for connecting to the electric grid.
SDG&E is not required to purchase/credit you for any excess annual generation (more than 100% of your annual consumption).
There are no special fees required but before you connect to the grid SDG&E will perform an inspection to make sure the system is connected safely.
No, there are no extra charges for being a Net Meter customer and no charges are imposed on the electricity you generate.
Net Metering Team
San Diego Gas & Electric
PO Box 129831, CP52F
San Diego, CA 92123
- E-mail our Net Metering Team
- 1-858-636-5581
Ken Parks
San Diego Gas & Electric
8316 Century Park Ct, CP52F
San Diego, CA 92123-1582
- E-mail our Net Metering Project Manager
- 1-858-636-5581
General NEM Billing Inquiries
SDG&E does not recommend any particular systems, retailers, or products nor are we involved in the installation, pricing, or maintenance.