Understand Net Energy Metering and your bill
PLEASE NOTE: On Dec. 13, 2021, the California Public Utilities Commission (CPUC) issued a proposal to modify the state’s Net Energy Metering (NEM) program. The Commission is currently reviewing the proposal. Until the Commission votes to approve any changes to the NEM program, the proposal has no legal effect and could change. Under the December 13 proposal, existing NEM customers would maintain their current billing structure for 15 years from when their system was interconnected (i.e. turned on).
This fact sheet provides additional information on the changes and why they are being proposed.
What is net energy?
PG&E’s Net Energy Metering (NEM) program helps your business reduce monthly electric costs with the energy generated by your own private rooftop solar energy system. A special net meter measures the difference between the amount of electricity your system generates throughout the month and the amount of electricity PG&E supplies. We calculate your bill using this difference, called net energy.
What to expect from your bill
Customers in the NEM program are automatically placed on a 12-month billing cycle.
Monthly statement: Each month, your PG&E Energy Statement shows the amount due for that billing period including monthly minimum delivery charges. The statement also shows a summary of your year-to-date solar charges and credits and how you are tracking towards True-Up.
Annual statement: After 12 months, you will receive the final statement of your billing cycle, the True-Up Statement. This statement provides your net energy charges and credits over the entire year and shows any final balance due.
View examples of the monthly and True-Up bill with detailed explanations. Visit How to Read Your Bill.
Understand how NEM works for your property
The electricity that your renewable system generates serves your property’s energy needs and reduces your monthly electric bill. We automatically supply additional power to your property when needed day or night. When your system generates more electricity than your property can use, the surplus energy exports to our electric grid.
Play a short and helpful video
Learn about surplus energy payments
California State Assembly Bill 920 allows PG&E to make payments to NEM customers who generate more electricity than they use over their 12-month billing cycle. The compensation received is called Net Surplus Compensation (NSC). The NSC rate is based on a 12-month average of the market rate for energy. The rate is about two to four cents per kilowatt hour (kWh). As an NEM customer, you are enrolled in this program automatically. If you qualify, the NSC you earn appears on your annual NEM True-Up statement. Learn more about Getting Credit for Surplus Energy.
PLEASE NOTE: Virtual Net Energy Metering (VNEM) works differently than NEM. VNEM applies when you live in multi-unit buildings with a common renewable generating system. Learn about VNEM and how it's billed. Download A Guide to Understanding Your VNEM Statement and Bills (PDF, 2.5 MB).