cpuc.ca.gov/solarguide page 17
How Electricity Bill Savings Work
If you go solar, your electricity provider will enroll you in
its Net Energy Metering (NEM) program. NEM allows
you to get a nancial credit on your electricity bill when
your solar system sends electricity back to the grid after
rst powering the electricity needs at your house. Usually,
this credit is approximately equal to the retail rate of
energy. is means that you are credited on your bill about
the same amount that your electricity provider would have
charged you for electricity during that time.
NEM and Your Electricity Bill
Consuming and Exporting Electricity
Since the sun isn’t always shining, solar customers also rely
on electricity from their electricity provider. After your
solar system is interconnected to the grid, your monthly
electricity bill will summarize how much electricity you
took in or “consumed,” from your electricity provider, and
how much electricity your solar system sent to the grid or
“exported.”
Monthly Bill Charges, Credits, and Minimum Amounts
If you took in more than you sent out to the grid in any
given month, you will see an overall charge on your bill.
If you sent out more than you took in, you will see an
overall credit. Typically, you will be able to carry forward
credits to the next month’s bill, and electricity usage charges
will not be due until the end of a 12-month period. Note
that many electricity providers require solar customers to
pay a monthly minimum bill each month just like other
customers. is minimum bill may change over time.
Time-of-Use Rates
PG&E, SCE, and SDG&E solar customers are
required to go on a time-of-use (TOU) rate plan.
A TOU rate plan will charge dierent prices for
electricity depending up on the time of day. Prices
are typically higher between 4 p.m. and 9 p.m.,
called “peak” hours, and lower the rest of the day
and at night during “o peak” hours.
12 Month Settlement Bill
Typically, at the end of a 12-month period, you will
receive a settlement bill, also called a “true up” bill,
that settles all the credits and charges. Even though
going solar can reduce your electricity costs, most
customers still owe some money to their electricity
$
$600
$400
$200
$10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10
$560
This is an example of a settlement, or
“true up,” electricity bill. It could occur
in a different month for you.
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Example Of A Settlement, Or “True Up” Electricity Bill
provider at the end of the 12 months. See graphic to the
right that shows an example of an electricity bill over a
12-month cycle for a solar customer.
Some electricity providers give you the option to pay your
settlement bill monthly instead of annually. If you choose
the monthly option, your payments will be more evenly
distributed over the course of the 12 months, and you
will not have to worry about paying a potentially large bill
once a year. Be clear with your solar provider if you want
the monthly option and double-check with your electricity
provider that the correct option was chosen.
ough it's rare, if you sent out more electricity than you
took in over the course of the 12-month period, you are
typically eligible to be paid "net surplus compensation,"
which is around 2 to 3 cents per kilowatt-hour. Because this
rate is lower than the retail rate, it is generally not in your
nancial interest to install a solar system that produces more
energy than you would use over the course of a year.
Currently, PG&E, SCE, and SDG&E customers are
guaranteed NEM for 20 years from the time their solar
system starts operating. Your electricity rate, however, is
subject to change. Go to www.cpuc.ca.gov/electricrates
for more details on how electricity rates work.
If you still have questions aer reading this
section, you can nd help at the additional
resources on pages 20-21 of this guide.