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What is Net Energy Metering (NEM)?
NEM allows customers that install on-site renewable energy systems, such as solar panels, to receive bill credits when their systems deliver power to the grid.
How Net Energy Metering Works
When you use electricity from the grid (for example, at night), your meter records the amount you consume. This information is used to determine your monthly electricity charges. When you generate electricity in excess of what you need, your meter will record credits you can use to offset your grid-supplied consumption and reduce your monthly electricity bill.
If your renewable energy system produces more electricity than you consume over a billing period, CleanPowerSF provides bill credits based on your CleanPowerSF retail electricity rate. These bill credits are carried over to the following month to help offset the cost of electricity you consume from the grid over the course of the year.
As depicted in the figure above, the principle change under CleanPowerSF's NEM program is that CleanPowerSF provides the generation credits and charges on your electricity bill. Everything else remains the same. PG&E continues to provide credits for electric delivery charges and CleanPowerSF customers will continue to be able to participate in the different types of PG&E NEM offerings, including, for example, Virtual NEM, Virtual NEM for Multifamily Affordable Housing, and NEM Aggregation.
What are the benefits of Net Energy Metering with CleanPowerSF?
Comparison of CleanPowerSF and PG&E’s Programs
True-Up/Invoices and Bill Credit Value
CleanPowerSF NEM charges and credits will be based on your existing CleanPowerSF electricity rate schedule. Any charges you owe to CleanPowerSF will be settled monthly to avoid a large bill at the end of the year, especially if you consume more energy than you use. Any net credits you generate in a month will be carried forward to offset any charges you may incur in subsequent months until the Annual Settlement period.
Every year during the April billing cycle, CleanPowerSF will conduct an Annual Settlement process to determine whether you are a “Net Electricity Generator” or a “Net Electricity Consumer” during the previous twelve months.
If you consume more electricity from CleanPowerSF than you generate from your renewable energy project during an Annual True-up Period will be a Net Electricity Consumer. At the end of the True-up Period, any bill credit balances that may be remaining at that time will be reset to zero starting with the beginning of the next True-Up Period.
If you generate more electricity from your renewable energy project than you consume from CleanPowerSF during an Annual True-up Period you will be considered a Net Electricity Generator. As a Net Electricity Generator you will be eligible to receive Net Surplus Electricity Compensation for any net electricity production during the prior twelve-months. Any outstanding bill credit balances remaining in your account will be reset to zero at the beginning of the next True-Up Period.
CleanPowerSF will pay customers their Net Surplus Electricity Compensation amounts at the end of the Annual True-Up Period by check. In lieu of receiving a payment from CleanPowerSF, Net Electricity Generators may elect to roll-over their entire Net Surplus Electricity Compensation amount as a bill credit for use during the next Annual True-up Period.
Net Surplus Electricity Compensation Rate (Cash Out Rate)
The Net Surplus Electricity Compensation rate will be applied to each kilowatt-hour (kWh) of net electricity produced during the true-up period.
If you do not own the rights to the Renewable Energy Credits (“RECs”) associated with the renewable energy project or you want to retain them for your own use, the Net Surplus Electricity Compensation rate is $0.069 per kWh.
If you own the rights to the RECs produced by your renewable energy project and you want to transfer the RECs with the net electricity produced to CleanPowerSF, the Net Surplus Electricity Compensation rate is $0.089 per kWh.
How do I get started?
Already a PG&E NEM customer and ready to enjoy the benefits of NEM with CleanPowerSF? Sign-up for CleanPowerSF early enrollment online or call (415) 554-0773.
To participate in CleanPowerSF’s NEM program, you must also be a PG&E NEM customer. If you are developing a new solar project, you must apply to interconnect your solar project to PG&E’s grid. For more information on PG&E’s solar program requirements, please visit PG&E's NEM applications.
For CleanPowerSF customers interested in installing solar, the City and County of San Francisco wants to help make it easier for you to do so. Learn more about the incentives and resources available with GoSolarSF.
If you have any further questions about Net Energy Metering with CleanPowerSF, please send those questions to us by email at: cleanpowerSF@sfwater.org