Rooftop Solar

How our Net Energy Metering (NEM) program works

SJCE customers with solar can learn about our NEM Program Benefits and billing and true-up processes.

For those considering installing rooftop solar, you will find a step-by-step guide and learn about available rebates and incentives to help with the process on our Going Solar webpage.

Upcoming NEM Webinar

Join us for an informational webinar about SJCE’s residential Net Energy Metering (NEM) program. SJCE’s Accounts Services Manager Mark Bachman will provide information about the enrollment phases along with an overview of our rooftop solar program.

Date: Tuesday, December 15, 2020

Time: 6:00 p.m. – 7:00 p.m.

Registration is required. Register today to save your spot.

Can’t make the webinar? Read on below, view the presentation slides or watch our virtual presentation.

SJCE NEM Program Benefits

Our Net Energy Metering (NEM) program is similar to PG&E’s, with a few benefits:

Option to be billed monthly or annually
Our Net Surplus Compensation rate is 25% higher than PG&E for customers that are annual net generators of power (set annually; currently $0.10565 per kWh)
Service by SJCE does not affect your rate plan or legacy NEM status, and SJCE honors all PG&E rate plans
Option to receive 100% renewable energy with TotalGreen
- If you are a TotalGreen customer, the extra $0.01/kWh premium applies when you are drawing power from the grid, but is credited back when you are generating power and sending it back to the grid.
- TotalGreen costs the average residential rooftop solar customer about $3 more than GreenSource per month.

How NEM Works

A special meter tracks the difference between the amount of electricity your solar panels produce and the amount of electricity you use during each billing cycle. When your panels produce more electricity than you use, you receive a credit on your bill. Bill credits will be carried over for use in subsequent billing period(s) throughout the Annual True-up Period (April to April each year) until such credits are exhausted.

Net energy graphic

Annual True-Up

Together, SJCE and PG&E provide your electric service. SJCE generates your electricity from clean sources. This includes usage not covered by your panels. PG&E delivers the electricity to you over its poles and wires. You have always paid for generation and delivery. You are not being double charged; SJCE replaces what you would have paid to PG&E for generation. For your convenience, your PG&E bill includes SJCE charges.

PG&E sends SJCE solar customers monthly statements that show a running balance of electricity used and generated. It is not a bill. Instead, every April, we settle the previous 12-months of SJCE charges and credits. We bill solar customers that use more electricity than their panels generate, and we send checks to solar customers that generated more electricity than they used. This once-a-year process is called a true-up.

Net Consumers are customers whose panels generate less electricity than they consume over the annual true-up period
Net Generators are customers whose panels generate more electricity than they consume

SJCE customers who are Net Generators during an Annual True-Up Period will be paid for the excess energy at the Net Surplus Compensation rate – 25% higher than PG&E’s rate.

True-Up Dates

Since both SJCE and PG&E provide your electric service, you have two true-up dates – one with SJCE for electric generation, and one with PG&E for electric delivery.

All solar customers will true-up for SJCE generation charges every April. Most Net Consumers will see their true-up charge on May bills and most Net Generators will be paid in June. Customers whose net surplus compensation is less than $100 will automatically receive a bill credit. Customers whose net surplus compensation is more than $100 will automatically receive a check in the mail.
For new customers, the annual true-up period for the first year will cover the period starting on the date that the customer began SJCE service through the customer’s April billing date. In cases where a customer has received SJCE service for less than 10 billing cycles in their first annual true-up period, the annual true-up period will be extended to the following April billing date. Therefore, customers may see significantly more than 12 months of SJCE true-up charges. This policy allows new solar customers to benefit from their NEM program for both summer months when excess credits are often generated and winter months when credits are often used up. If you wish to avoid more than 12 months of true-up charges, you can request to be trued-up with less than 10 months of service. Please use our online form to make that request or call 833-453-2454. This request must be made by April 1.

PG&E true-up dates depend on the following:

For customers that already had solar when they enrolled with SJCE, their PG&E true-up is the month of enrollment with SJCE.
For customers that installed solar after being enrolled with SJCE, their PG&E true-up is the month their system began operating. SJCE enrolled non-solar customers in February 2019.

The PG&E true-up charges will be listed in the details of PG&E charges section. SJCE true-up charges will be listed in the details of San Jose Clean Energy charges section. These sections are on separate pages.

Billing

SJCE charges are included in your monthly PG&E statement. Read our Understanding your NEM Bill flyer to learn more. Note the bill shown in the flyer is a sample NEM 2.0 bill and may look different from your bill. If you have NEM 1.0 and want to know more about what your bill will look like, or have questions, please contact Customer Service at (833) 432-2454 or customerservice@sanjosecleanenergy.org.

By default, SJCE residential and A1 non-residential NEM customers will be billed annually and receive monthly energy statements. All customers can choose to receive monthly billing by calling (833) 432-2454.

Changes to SJCE Service: Final True-Up

Both PG&E and SJCE will perform a true-up when your energy provider changes to SJCE or back to PG&E or if you move and close your account. This settlement will result in a balance due for any usage charges owed to-date, or alternatively will result in a forfeiture of any excess credits on your account at that time.

Customers whose cashout is more than $100, will be sent a check in the mail. You can request that this check be sent to a new address by using our online form or calling 833-453-2454. This must be done within 2 weeks of stopping service.
Customers whose cashout is $100 or less, must request a check be sent to them within 12 months of stopping service. You can request that this check be sent to a new address by using our online form or by calling 833-453-2454.

Additional Resources

NEM Terms & Conditions

Rooftop Solar FAQ

Rooftop Solar Update

In December 2022, the California Public Utilities Commission (CPUC) adopted a new tariff that will replace the Net Energy Metering (NEM) tariff.

The tariff currently in place is known as NEM 2.0. The last date to enroll in NEM 2.0 was April 14, 2023. The new tariff, known as the Net Billing Tariff (NBT), is expected to be implemented by December 2023. The CPUC plans to release more details on NBT later in 2023.

Read our blog for more information.