Dynamic Export Rate Pilot Program
A new program that provides customers the opportunity to reduce energy bills by purchasing electricity when the price is lower and selling it back to SDG&E when the price is higher. Enroll now.
The Dynamic Export Rate Pilot will allow business customers with electric vehicles, battery storage, backup and other generators to manage their energy use and their budgets by purchasing electricity when pricing is lower during off-peak hours and selling excess generation back to SDG&E when pricing is higher, typically during on-peak hours between 4 p.m. and 9 p.m.
This innovative energy management program can provide savings for your business while enhancing grid reliability and reducing greenhouse gas (GHG) emissions. When energy demand rises, so does the need for generation by gas, leading to higher prices and higher GHG emissions. The Dynamic Export Rate allows customers the opportunity to take advantage of the California Independent System Operator (CAISO) day-ahead pricing and manage energy use during times of high demand when prices are higher.
How It Works
The Pilot launches on January 1, 2025. The CAISO day-ahead hourly prices will be published on sdge.com by 6 p.m. daily to allow you to plan and adjust energy management.
Electricity used (imported) is priced according to your pricing plan (EV-HP, AL-TOU or TOU-A). Bill credits for excess electricity sent back to the grid (exported) from your battery or generator are based on the day-ahead pricing plus a Generation Capacity Component (GCC) added by SDG&E during event hours. Imports and exports are netted at 15-minute kWh intervals to determine charges and credits.
GCC event hours are based on projected energy demand in SDG&E’s territory. When a GCC event hours are called, SDG&E adds a GCC to the CAISO Day-ahead price, increasing the customer's total compensation.
Reducing electricity use during event hours is voluntary with no penalties if you don’t reduce your use.
The Pilot will conclude after two years, ending on December 31, 2027. Data and insight gathered during this Pilot and others conducted across the state will help inform the feasibility of future dynamic pricing plans and will also be used to determine whether the Pilot’s Dynamic Export will continue. You will be provided at least 90 days’ notice ahead of termination of the Pilot rate, at which time you will continue on your already existing import rate (EV-HP, AL-TOU or TOU-A).
Potential Credits Earned
The chart below outlines the potential additional compensation a customer could receive by exporting during a GCC adder event. The chart outlines three different scenarios representing different generation capacities.
- Small Commercial customers: Scenario 1 is a 10 kW generator, Scenario 2 is a 20 kW generator, and Scenario 3 is a 30 kW generator
- Medium Commercial customers, Scenario 1 is a 60 kW generator, Scenario 2 is a 120 kW generator, and Scenario 3 is a 250 kW generator
- Large Commercial customers, Scenario 1 is a 250 kW generator, Scenario 2 is a 500 kW generator, and Scenario 3 is a 2150 kW generator
|
Customer Class |
Rate |
Illustrative Annual Average |
Illustrative Hourly Average |
||||
|
Average Compensation - Scenario 1 |
Average Compensation - Scenario 2 |
Average Compensation - Scenario 3 |
Average Compensation - Scenario 1 |
Average Compensation - Scenario 2 |
Average Compensation - Scenario 3 |
||
|
Small Commercial |
TOU-A |
$356.05 |
$794.63 |
$1,239.35 |
$2.37 |
$5.30 |
$8.26 |
|
Medium Commercial |
AL-TOU, EVHP |
$1,914.89 |
$4,904.70 |
$11,703.46 |
$12.77 |
$32.70 |
$78.02 |
|
Large Commercial |
AL-TOU, EVHP |
$5,756.84 |
$16,406.66 |
$100,211.97 |
$38.38 |
$109.38 |
$668.08 |
NOTES:
- Battery constraints, ramping constraints, warranty constraints and runtime constraints for various generation types are not considered.
- This chart is based on the top 150 system hours in 2023.
- Compensation amounts are based 3/1/2024 rates, and subject to change based on future rate charges.
Rate Details
Export pricing in the Dynamic Export Rate Pilot is based on the CAISO day-ahead hourly price and includes an added Generation Capacity Component during event hours.
- CAISO Day-Ahead Hourly Price: The CAISO day-ahead market hourly prices will be published daily by 6 p.m. on a dedicated page of sdge.com. If the CAISO day-ahead hourly prices are not published by SDG&E by 5 p.m. for the day-ahead market, the prior day’s CAISO day-ahead hourly prices will be the effective CAISO day-ahead hourly prices. CAISO market data posted or corrected after 5pm will not be used for Dynamic Export Rate Pilot calculations and after-the-fact rate adjustments will not be made.
- Generation Capacity Component (GCC): The GCC is an adder based on marginal generation capacity costs only and is applied to the top 150 system peak hours.
It’s easy to enroll in the Dynamic Export Rate Pilot Program
- Participants in the Pilot must have an active Electric Rule 21 interconnection agreement with SDG&E. Interconnection may involve fees and other upfront costs. Learn more and apply online.
- After your interconnection agreement is completed and approved, or if you already have a Rule 21 agreement to export, simply call the Business Customer Care Center at 800-366-7343 to enroll in the Dynamic Export Rate Pilot.
- The Dynamic Rate Export Pilot is scheduled to launch on January 1, 2025. You can enroll now, and your account will automatically transition to the Dynamic Export Rate beginning the first bill period following January 1.
Frequently Asked Questions
Energy used (imported) while in the Pilot will be priced according to your pre-Pilot rate schedule (EV-HP, AL-TOU, or TOU-A).
Participants in the Pilot must have an active Electric Rule 21 interconnection agreement with SDG&E. Interconnection may involve fees and other upfront costs. Learn more and apply online.
After your interconnection agreement is completed and approved, or if you already have a Rule 21 agreement to export, simply call the Business Customer Care Center at 800-366-7343 to enroll in the Dynamic Export Rate Pilot.
If you already have a Rule 21 agreement that does not include the ability to export, you will need to submit a new application.
If you do not already have a Rule 21 agreement with the ability to export, you first need to apply for Rule 21 interconnection. See more information for Rule 21.
During the Pilot, your bill will include an additional line item showing the Dynamic Export Rate Credit issued for any excess generation. If no credits were earned during the service period, the line item will show a value of zero. Look for the credit in the Electric Charges section of your bill. You can also call the Business Care Center at 800-336-7343 to request detailed information on your hourly usage and pricing.
The Dynamic Rate Export Pilot provides customers the opportunity to reduce energy bills by purchasing electricity when the price is lower and selling it back to SDG&E when the price is higher. This innovative energy management program can provide savings for your business while enhancing grid reliability and reducing greenhouse gas (GHG) emissions.
Yes, the export limit will depend on your generator capacity and your Rule 21 agreement.
Any generators approved under a Rule 21 interconnection agreement to export back to the grid are allowed in the Pilot. Electric vehicles, batteries, batteries + storage, hydroelectrical turbines, steam turbines, backup generators, and combustion turbines are all allowed in the Pilot.
Yes. You can unenroll but would need to maintain compliance with Rule 21 and forfeit your existing NEM/Solar Billing Tariff SBT compensation.
Program Resources
* Pilot participants must receive both electric generation and delivery service from SDG&E on the EV-HP, AL-TOU or TOU-A pricing plan and have a completed Rule 21 interconnection agreement with SDG&E. The pilot is not available to solar (NEM or Solar Billing Plan), Community Choice Aggregation (CCA) or Direct Access (DA) customers, as well as customers on legacy rates, conjunctive billing, or who are currently enrolled in any Demand Response programs. Actual savings may vary and will depend on various factors, including geographic location, weather conditions, equipment installed, usage rates and similar factors.