Net Energy Metering and Tracking
The Net Energy Metering programs will be re-designed in the next couple of years, as PG&E gets closer to reaching the predetermined NEM cap. Customers who are already participating in an eligible NEM program will be allowed to continue taking service on their current program for a transition period of up to 20 years before they have to take service on the new net energy metering rates.
PG&E's Net Energy Metering programs provide customers the ability to offset the cost of electricity with their own renewable generation and current customers will automatically be allowed to continue with their current program for a transition period of up to 20 years before they have to switch on to the new NEM Program.
Here you can find more information on the Transition rules and timeline as well as track PG&E’s progress towards the net energy metering cap set by State Legislature.
Note: The transition to a new NEM program is directed by the California Public Utilities Commission (CPUC) and pursuant to Assemble Bill 327.
Program Transition Details
- Do customers need to take any action?No. Existing NEM customers will be automatically placed on the new NEM program rates after the Transition period.
- What is the Transition period?If you are a customer already participating in a NEM program at the time the cap is reached or before July 1, 2017, whichever occurs first, you will be ‘grandfathered.’ This means that you will continue to be eligible under your original applicable NEM program for 20 years from the original interconnection approval date ("Permission to Operate Letter") until the date of your annual true-up bill (or 12th month bill) in the 21st year of participation. For example, if a customer had a NEM interconnection date in July of 2010, they would be eligible to stay on their current NEM program through their annual true up in July of 2030.
- Who does the Transition Period apply to?The Transition period applies to customers who take service on either the current
Net Energy Metering (NEM), Virtual Net Energy Metering (NEMV), or Virtual Net Energy Metering for Multifamily Affordable Housing (NEMVMASH) programs before July 1, 2017, or when the respective Cap has been reached.
- When does eligibility for the Transition period end?Eligibility to be grandfathered and take advantage of the transition period will end either July 1st, 2017, or at such time when the cap is reached, whichever happens sooner.
- What would disqualify a customer’s system from the Transition period?If the renewable generator is modified or repaired after the Cap has been reached, the customer can remain eligible for the entire transition period only if the generator capacity increase is less than 1 kW or less than 10% of the originally approved generator capacity.
However, if the capacity increase is greater than 1 kW or 10% of the originally approved generator capacity, the customer cannot utilize the prior NEM program for the entire system. The customer would have the following two options:
• Meter the added capacity separately under the successor NEM program, or
• Elect for the whole system to take service under the successor NEM program
- What if a customer transfers ownership of the renewable generator?If the renewable generator is transferred to a new owner, operator, or PG&E account at the original location, it will not lose eligibility for the original 20 years transition period unless the customer has elected to transition to the successor NEM program sooner.
- Will customers have the option to transition to the new NEM program sooner?Yes. The successor NEM program will be developed by the CPUC in the next couple of years. At that time, customers will have the option to move to the successor NEM program prior to the expiration of your 20 years transition period. If the customer elects an early transition, they cannot later move back to the previously applicable NEM, NEMV or NEMVMASH program.
- How is the NEM Cap Calculated?The NEM program has a limit set by the Legislature. The NEM cap is based on the earlier of the cutoff date of July 1, 2017, or when the total generating capacity of all renewable generators has exceeded 5% of PG&E’s aggregated customer peak demand cap or the 2,409 MW capacity limit as added by AB 327.
- Where can I find more information on the Transition rules?For full details on the Transition rules, please review the NEM tariff.
The table below shows the latest number of customers in PG&E's service territory taking service under NEM and the combined capacity of their generating systems.
Monthly AB 327 Net Energy Metering (NEM) Program Limit Report¹
|Data updated as of September 2014|
|Total Available MW Cap||2,409 MW||5% of|
|Applications Received in September 2014|
(New requests for NEM interconnection)
|Total NEM Applications in Queue as of September 2014|
(Total pending requests for NEM interconnection)
|Cumulative NEM Installations²|
(Projects approved for NEM interconnection)
|NEM Installations and Applications in Queue|
(Cumulative MW installed under NEM + NEM MW in Queue)
|Remaining MW to Cap|
(NEM Cap minus (Cumulative MW installed under NEM + NEM MW in Queue))
¹The purpose of this report is to adhere to Public Utilities (PU) Code Section 2827(c)(4)(C), which directs each large electrical corporation to file a monthly report with the California Public Utilities Commission detailing the progress toward the NEM program limit. This report includes all systems either seeking interconnection or interconnected under the NEM program pursuant to PU Code Section 2827 (e.g., solar, wind, fuel cells using renewable fuels, etc.)
²Includes cumulative installations approved for NEM interconnection since NEM inception in 1996 (does not include systems that terminated NEM interconnection with the utility).