Net Energy Metering and Tracking

PG&E's Net Energy Metering (NEM) program provides customers the ability to offset the cost of electricity with energy that their renewable generating system exports to the grid. For a customer that participates in the NEM program, PG&E will install a meter that measures 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 billing month. After 12 billing cycles, the corresponding credits and charges are reconciled, and any remaining charge is then billed to the customer. Visit the Net Energy Metering and Billing page for more information.

Typically, a renewable generating system produces more energy during peak hours and summer months. This production may exceed the household’s or business’ requirements, in which case the surplus energy generated produces bill credits for use during off-peak hours and winter months when the system may not meet the customer’s energy needs. In addition, if a customer has generated more energy than they consumed in total over a 12 month period, they may be compensated for the excess electricity.

The NEM program has a limit set by the Legislature. This limit is based on 5% of PG&E’s aggregate customer peak demand. The total generating capacity of all the renewable generators that qualify under NEM are added together until the 5% limit is reached. The method for calculating aggregate customer peak demand was changed recently through California Public Utilities Commission (CPUC) Decision 12-05-036. For this reason, the percent of the NEM allowable capacity that has been met to date may be lower than numbers reported prior to D. 12-05-036.

The table below shows the latest number of NEM customers in PG&E's service territory and the combined capacity of their generating systems. These amounts are only estimates for tracking purposes and do not replace PG&E's CPUC reporting requirements.

DateNEM Installations – NumberNEM Installations CEC ACEstimated Percent of Aggregate Peak Demand*
March 31, 2014114,6391,050.0 MW2.18%

The figures above are updated quarterly.
* Based on PG&E’s four year annual average, 2007 through 2010, non-coincident aggregate customer peak demand of 48,177 MWs, per Advice Letter 4122-E.