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Net Energy Metering (NEM) and your bill.

After years of back and forth before coming to a proposed decision, on December 15, 2022, the California Public Utilities Commission (CPUC) voted unanimously to approve California's third iteration of net metering, or NEM 3.0.

On December 15, 2022, the CPUC voted unanimously to pass NEM 3.0. This decision will impact rooftop solar customers of Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric. The NEM 3.0 timeline began in August 2020 when CPUC initiated reform for the current version.

On April 15, 2023, the current NEM 2.0 program will be closing to new applicants and a new program, known as the Solar Billing Plan, will be available. To be eligible for NEM 2.0, Interconnection Requests (applications) and all required documents must be submitted by no later than April 14, 2023.

The NSC rate is based on a 12-month rolling average of the market rate for energy. That rate is currently approximately $0.02 to $0.03 per kWh (for up-to-date NSC data, follow these links: PG&E, SCE, SDG&E).

The NEM 2.0 tariff governs how rates are calculated for rooftop solar customers as their panels interact with the grid throughout the day. The NEM tariff allows customers to receive a financial credit on their electricity bills when their rooftop solar system sends excess electricity to the electric grid.

On April 15, 2023, new solar customers will be enrolled in the new Net Billing Tariff (NBT) where customers will be credited for electricity they export based on its value to the grid.

On average, NEM 1.0 residential customers consume significantly more energy, and NEM 2.0 customers consume slightly more energy, than average Californians. This may be partially due to these systems being installed on larger and/or more energy intensive homes than the average California home.