Solar Billing – Net Energy Metering (NEM)

Your Net Energy Metering Breakdown

We think it’s great that you’re powering your home with the sun’s power! We are here to help you get the most out of net energy metering (NEM).

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

Curious how much you could save with a solar + battery system? Our friends at Silicon Valley Clean Energy have a Solar + Battery Assistant that can help.

How Net Energy Metering 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 from us on the generation part of your bill. PG&E will credit you on the delivery part of your bill.

SJCE charges are included in your monthly PG&E statement. All rate change selections should be made through PG&E by calling their customer support line at (800) 743-5000 or online in your PG&E account. Your rate selection will be communicated to us by PG&E.

Net energy graphic

All rooftop solar customers who applied for interconnection on or after April 15, 2023, will be placed on the new PG&E Solar Billing Plan. Read more about this new rate below.

Changes to Our NEM Program

We have recently updated our Net Energy Metering (NEM) polices in an effort to improve the Net Energy Metering (NEM) process to benefit our customers.

Before April 1, 2024	After April 1, 2024
Annual billing with option to enroll in monthly billing	All customers will be billed monthly
Customers received a check if they generated more electricity than they used	Net Surplus Compensation will be applied as an on-bill credit on your PG&E statement
Customers had to be enrolled in the program with 10 months of service before true-up occurred	All customers will true-up in the month of April regardless of when their service started
Customers have the option to enroll in TotalGreen, 100% renewable energy	Customers have the option to enroll in TotalGreen, 100% renewable energy
Customers also receive a true-up from PG&E for delivery the month their service was connected	Customers also receive a true-up from PG&E for delivery the month their service was connected

NEM Terms & Conditions

Benefits of Our NEM Program

Get Paid for Excess Solar Generation
We’ll pay $0.03575 per kilowatt-hour (kWh) for any excess solar you produce and put back onto the grid as of April 1, 2026. Our net surplus compensation rate is 25% higher than PG&E’s – this means you will get paid more for excess solar with us than if you were with PG&E’s bundled service.
Monthly Billing with Credit Rollover
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.

We bill you monthly, so you don’t end up with a year’s worth of charges in an annual true-up. Excess credits rollover month-to-month. Any money owed at your annual true-up in April will come as a credit applied to your bill. This credit will apply to any part of your bill, including delivery or gas charges.
Opportunity to Sign Up for TotalGreen
When you need additional electricity not produced by your panels, you can ask us to source it from 100% renewable resources through our TotalGreen service. TotalGreen costs an extra $0.01 per kWh or about $4 more per month for the average San José home with solar panels.

As a NEM customer, the extra premium for TotalGreen applies when you draw power from the grid and when you send it back to the grid. So, the $0.01 per kWh premium for TotalGreen applies to your charges and credits.

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.

Each month, net energy – the difference between the energy produced by a customer’s generating system and the amount of electricity supplied by SJCE – is calculated. Customers who generated more energy than they consumed will receive credits to be used on future charges from SJCE in the same true-up period. Customers who consumed more than they generated will receive a charge less any available credits.

Monthly billing provides customers with greater visibility into how their solar systems are functioning. Customers can better track charges over time and won’t be caught off guard with a large bill. 75% of our solar customers consume more energy than they generate, and the average residential customer owes $600 at annual true-up.

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

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.

SJCE True-Up

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 who generate more energy than they consume will receive net surplus compensation in the form of an on-bill credit on their PG&E statement.
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.

PG&E True-Up

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.

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.

New Net Energy Metering Customers

On December 15, 2022, the California Public Utilities Commission (CPUC) issued a ruling that changes the way new solar customers will be compensated. The new program is the Solar Billing Plan (SBP), which succeeds the NEM (Net Energy Metering) programs.  This plan is designed to improve grid reliability by incentivizing solar customers to export electricity to the grid during on-peak hours, when their exported electricity will be credited at the highest rates. Under the new Solar Billing Plan, the CPUC expects new solar customers to save roughly $100 per month on their electricity bill when compared to customers who do not have solar installed.

If you applied for solar after April 14, 2023, you will be on the Solar Billing Plan. The program contracts last for 20 years and feature the following: 

Credit for Excess Export: When your solar system generates more energy than you use, you are credited for this surplus electricity production at the standard Energy Export Credit (EEC) rates. These rates can be found on PG&E’s website here.

Monthly credit rollover: Some months, your system will generate more energy than others, so your Energy Export Credit (EEC) will roll over each month to help offset any generation charges throughout the year.

Annual cash-out: If you generate more energy than you use at the end of the 12 months, you will be credited at Net Surplus Compensation (NSC).

Existing Solar Customers

If you applied for solar interconnection before April 14, 2023, you will remain on your existing NEM tariff until their 20-year legacy period expires, effective at the date their system was connected to the grid. During this period, existing solar NEM customers will receive the same retail compensation rates that they currently receive. After your 20-year NEM period ends, you will be enrolled in the new Solar Billing Plan.

Transitioning from NEM 1.0

If you are transitioning from NEM 1.0, the Solar Billing Plan will be valuable, but the credit amount for the power you produce has changed. Compared to NEM 1.0, most solar producers will earn less for their power and consequently see an increase in their electric bill.  If your solar system produces more energy than you typically consume annually, the San José Clean Energy Solar Billing Plan pays more for your excess production than PG&E will.

Solar Billing Plan Breakdown

Under the Solar Billing Plan, imported electricity charges (when you use power from the grid) and exported electricity credits (when your solar system sends excess energy to the grid) will be calculated separately. Imported electricity charges will be based on your regular SJCE electric generation rate schedule. Every kWh consumed at home from the grid will be charged based on your regular SJCE generation rate, and every kWh exported to the grid from their solar system will be credited at the separate EEC rate. To view the EEC rates, please visit PG&E’s charts here.

Credit balances can accumulate and be carried monthly as an Export Credit Balance until the SJCE Annual Cash Out. While Export Credit Balances can offset monthly SJCE charges within the 12 months leading up to the Annual Cash Out, this credit balance does not apply to the Annual Cash Out.

Solar customers on or before April 14, 2023	Solar customers after April 14, 2023
If you applied for interconnection with PG&E on or before April 14, 2023, you will stay on NEM 2.0 for the duration of your 20-year legacy period. At the end of your legacy period, you will switch over to the new Solar Billing Plan/ E-ELEC rate on April 15, 2024.	If you applied for interconnection on or after April 15, 2023, the new rules affect you. When you apply for interconnection, PG&E will give you a “permission to operate” or PTO date.
If you reach the end of your legacy period on NEM 1.0, you will transition to Solar Billing Plan/ E-ELEC rate. You will not get another legacy period on NEM 2.0.	If you have a PTO date between April 15, 2023, and December 14, 2023, you will enroll in the Solar Billing Plan/ E-ELEC rate one year after your PTO date. This means you will be compensated under the previous NEM rules for one year (NEM 2.0).
	If you have a PTO date after December 14, 2023, you will automatically enroll in the Solar Billing Plan/ E-ELEC rate.

Give us a call at 833-432-2454 or email us at info@sanjosecleanenergy.org if you have questions.

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