Net Energy Metering (NEM)
Supporting California’s Clean Energy Goals
Generating your own electricity, reducing your carbon footprint and saving on your bill.
NEM Accounts that are Changing to the Solar Billing Plan
NEM 1.0 and NEM 2.0 customers, when your 20-year legacy period ends, your account will transition to the Solar Billing Plan. You will be notified by email and in My Energy Center before the transition.
Virtual Net Energy Metering and NEM Aggregation customers who submit an interconnection application after February 14, 2024, your account will transition to the Solar Billing Plan in early 2025.
How NEM Works
Net Energy Metering (NEM) measures your energy use in both directions: the surplus energy your system sends to the grid and the amount of energy your home or business uses from the grid to fill the gap between what your system generates and your overall energy usage.
If you generate more energy than you use, you can earn generation credits. These credits can be applied to your account to use on a later bill when you owe a balance – perhaps on cloudier months when your system doesn’t get as much sunlight, or when it’s hot out and you’re using more energy to run your AC.
At the end of every 12-month period, you will receive a “true-up” bill. This is when your account is reconciled, and you may need to pay off an outstanding balance. After true-up, your account automatically resets for a new 12-month period.
Choose a Plan that Puts You in Control
Choose a new pricing plan and see how you can save over your current plan. Connect to My Energy Center and go to “Compare My Pricing Plans” to see detailed descriptions and plan features.
Virtual Net Energy Metering (VNEM)
Virtual Net Energy Metering is similar to NEM but involves several customers sharing a single renewable energy system. This option is most applicable to properties with multiple tenants, like apartment complexes and office buildings.
For example: If you are a tenant in a four-unit apartment building, and your landlord installs a solar energy system with VNEM, you would be allocated a percentage of that system’s output. Let’s say your allocation is 5%. If that system generates more energy than your building needs, you will get the same percentage of generation credits (5%). The building’s usage would all be calculated through a single meter, but you’d still receive an individual bill.
Note: the existing VNEM program will be closed to new applications after February 14, 2024. Customers who submit an interconnection application after this date will temporarily take service on VNEM until their account transitions to the new Virtual Solar Billing Plan (VSBP) in early 2025. Learn more about the CPUC decision.
NEM Aggregation
NEM Aggregation is designed for customers with renewable systems on multi-metered properties. It allows you to “aggregate” your energy production and consumption into one account, so you can offset your non-renewable energy use with your renewable energy surplus.
A good example is a small farm: If the farmhouse is equipped with solar panels that generate surplus energy, that surplus can be used to offset the energy costs incurred by a water pump used for irrigation on another area of the property.
Note: the existing NEM Aggregation program will be closed to new applications after February 14, 2024. Customers who submit an interconnection application after this date will temporarily take service on NEM Aggregation until their account transitions to the new Solar Billing Plan Aggregation (SBPA) in early 2025. Learn more about the CPUC decision.
No, NEM doesn’t track all of the energy your renewable system generates. NEM only tracks the surplus energy that flows out of your home or business into the electric grid. We cannot track or advise how much overall energy your system produces.
To learn more about generation credits, annual true-up and how to read your bill, visit Understanding Your NEM Bill.
Per the methodology established by the California Public Utilities Commission (CPUC), when your renewable system exports excess energy to the grid, we compensate you with generation credits at the wholesale market value of that energy. Wholesale market value is applied to excess generation to align with what a utility would pay if it were to purchase renewable energy from a solar facility. The energy you buy from us is priced at the retail market value, which is typically higher than wholesale, although the pricing of both fluctuates with the market over time.
Many low-income households qualify for subsidized NEM billing through the California Alternative Rates for Energy, CARE or FERA program. Customers with electrical medical equipment may need a Medical Baseline plan with NEM.
We offer NEM pricing plans that are compatible with Medical Baseline, so you can keep your allowance and necessary measures can be taken to keep your health equipment running. Visit our Medical Baseline page for more information.