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Net Energy Metering (NEM) Basics and Your Bill

How Net Energy Metering (NEM) Works

Image Credit: PG&
Image Credit: PG&

It is important to understand how your bill will be impacted when you make the smart decision to upgrade your home to Solar.

A simple way to understand net energy is this: Energy you produce, minus the energy you consume, equals net energy. PG&E has a special billing program for your solar and renewable energy usage at home: the Net Energy Metering (NEM) program.

Each month, your NEM statement from PG&E shows the amount due for the monthly minimum delivery charges. The statement also shows a summary of your current and year-to-date charges and credits.

After 12 months, you receive your NEM True-up statement. This statement provides your net energy charges and credits over the entire year. It also shows any final balance due.

The electricity that your renewable system generates serves your home’s energy needs and reduces your monthly electric bill. We automatically supply additional power to your home when needed day or night. When your system generates more electricity than your home can use, the surplus energy exports to our electric grid.

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 three 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 NSC. View Getting Credit for Surplus Energy.

Visit PG&E to learn more about Net Energy Metering

Recent Changes to NEM in California

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