Net Energy Metering Billing
PG&E's solar (≤ 1 MW) and small wind (≤ 50 kW) Net Energy Metering (NEM) program provides customers the ability to offset the cost of their electricity with energy their generating system exports to the grid. Below is information about how NEM billing works as well as information on Assembly Bill 920 (AB 920), recently passed legislation that adds a compensation option for net-generating customers.
How NEM Billing Works
1) After a customer installs an eligible solar or wind generating system (solar, wind, etc.), and upon receiving approval from PG&E to interconnect to the grid, PG&E installs a bi-directional "net meter" on a customer’s property that measures the net energy—the difference between the amount of electricity supplied by PG&E and the amount of electricity exported to the grid over the course of a month.
2) The customer’s account is enrolled in the NEM program and put on an annual 12 month billing cycle.
3) The meter is read monthly and an amount is calculated based on the net energy recorded (in kilowatt-hour). If a customer exported more electricity than they drew from PG&E in a given billing cycle, the amount is deemed a credit. If a customer received more electricity from PG&E than they exported, the amount is deemed a charge.
- a) The rate at which the charge or credit is calculated is based on the customer's otherwise-applicable-rate schedule which is requested in the customer's Interconnection Agreement. It is the same electric rate schedule that the account would be eligible for without a generating system.
- b) If a customer has selected a time-of-use or seasonal electric rate schedule, the account may reflect a credit, even if the customer is not a net generator. The reason is that on some electric rate schedules, the rate per kWh is higher during certain times of the day and/or certain times of the year (e.g. summer season). If the customer is generating more than they are consuming during these periods, the rates at which they are credited are higher than the rates they may be charged for consuming more than they generate.
Example illustrating how NEM billing works, (does not reflect an actual customer’s usage or rate)
| Summer/Peak Winter/Off-Peak | $0.30 per $0.12 per | kWh kWh | x x | -500 (kWh) 1000 (kWh) =500 kWh (net) | = = = | -$150 $120 -$30 |
4) The charge or credit and the applicable meter reads are detailed in the customer's monthly NEM Statement. While this statement is not a bill, it allows a customer to keep track of their accumulating charges and credits. The customer will also continue to receive their regular PG&E bill for other applicable charges such as minimum charges, meter charges, customer charges, demand based charges and gas charges.
5) After 12 billing cycles, the corresponding charges and credits are reconciled, this is called the annual true-up bill.
6) Any remaining charges must be paid and any excess credits are typically zeroed out. However, once the AB 920 program goes into effect in 2011, if the customer is a "net generator," i.e., they provide more electricity (kWh) to PG&E’s grid than they receive from the grid over the 12 month annual billing cycle they may:
- a) Receive compensation for the surplus generation;
- b) Receive credit for the surplus generation and apply it toward subsequent kilowatt hours (kWh) supplied by PG&E, or;
- c) Not participate in either option.
As provided in AB 920, the details regarding these options will be developed and finalized in the coming months. PG&E will provide updated information as it becomes available.
What's New with NEM Billing - Assembly Bill 920
The California Public Utilities Commission has reached a decision with regard to Assembly Bill 920 (AB 920). Learn More.
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