Net Energy Metering (NEM)

We know that solar can be complex. Let’s break down NEM.

What is NEM?

If you have solar panels or other self-generation systems, like wind turbines, Net Energy Metering (NEM) allows you to offset the energy that you use each month with the energy that your system produces. Please note that NEM is closed to new solar customers as of April 15, 2023. New solar customers will be enrolled under the Solar Billing Plan.

Your electricity meter tracks both your consumption, or how much energy you use, and your generation, or how much energy your self-generation system produces.

With NEM, you receive bill credits when you generate more energy than you consume. These credits can help offset charges for energy that you will use in the future.

If you generate more energy than you consume over your annual true-up period, San Diego Community Power will pay you for that excess energy.

How Does NEM Work?

The difference between the amount of energy you use and the amount of energy your system generates is called net energy.

Community Power calculates your net energy each month and determines whether you’re a net generator (generating more energy than you consume) or a net consumer (consuming more energy than you generate).

Your net energy will be positive on your bill if you are a net consumer, and negative if you are a net generator.

At the end of each billing period, net generators receive credits that can be used to offset future charges. Net consumers will be charged for the net energy that they consumed, minus any available credits.

Please note that Community Power credits offset Community Power generation charges only; they cannot offset SDG&E’s transmission and delivery charges.

Electric transmission tower and solar-powered home illustrating net energy generation.
Power lines at dusk and a home using electricity at night with solar panels on the roof.

Community Power’s NEM Program

Community Power and SDG&E both offer NEM programs with slight differences.

Community Power’s NEM Program

Choice between monthly or annual application of credits and charges for generation service

NEM Balance Credit Refund applied at time of true-up for charges applied throughout true-up period

Net Surplus Compensation (NSC) applied at wholesale rate plus Community Power’s $0.0075/kWh bonus incentive

Customers automatically receive checks for NSC above $100

Any NSC below $100 will be rolled over to offset future Community Power charges

SDG&E’s NEM Program

Credits and charges applied annually for all customers

No additional credits applied at time of true-up for applied charges

Net Surplus Compensation (NSC) applied at wholesale rate

Customers must contact SDG&E to request check for NSC

Monthly Account Adjustments

Monthly account adjustments can help you avoid unexpectedly large annual true up bills.

You earn bill credits for generating electricity. If you generate more energy than you consume in a given month, you will receive a credit for it at rates based on the time-of-use periods of your rate schedule or the plan that determines how you pay for the energy you use. If you are on a tiered rate, you will receive generation credits at the retail rate of the total period value. Learn more about rate schedules on our Tarifas residenciales or Commercial Rates pages.

When you consume more energy than you generate in a given month, we will apply any credits that you’ve accrued to help offset your charges. If your credits do not cover all of the charges, you will be charged for the difference.

If you generate more electricity than you use, you will receive a credit for it at retail rates.

If you use more energy than you generate, you will be billed for it at the same retail rate.

True-Ups and Net Surplus Compensation

At the time of your true-up with SDG&E, Community Power will also conduct a true-up for the generation portion of your service.

If you are billed monthly, don’t worry — you won’t receive a big surprise bill for Community Power charges since you will have already paid smaller amounts for any months of net consumption throughout the true-up period.

If you generated more than you consumed, we will pay you for that surplus energy at our Net Surplus Compensation (NSC) rate, which is always $0.0075/kWh more than SDG&E’s.

If your net surplus compensation is greater than $100 per account, we will automatically issue you a check. If your net surplus compensation is less than $100, we will carry it forward as a rollover to help offset future Community Power charges.

MonthYearSDG&E $/kWhCommunity Power Bonus PremiumCommunity Power $/kWh
November20250.020760.00750.02826
October20250.020370.00750.02787
September20250.017530.00750.02503
August20250.014510.00750.02201
July20250.012840.00750.02034
June20250.013720.00750.02122
May20250.016670.00750.02417
April20250.023850.00750.03135
March20250.030720.00750.03822
February20250.031920.00750.03942
January20250.018370.00750.02587
MonthYearSDG&E $/kWhSDCP Bonus PremiumSDCP $/kWh
December20240.01680.00750.0243
November20240.016730.00750.02423
October20240.015410.00750.02291
September20240.014630.00750.02213
August20240.011790.00750.01929
July20240.008540.00750.01604
June20240.011570.00750.01907
May20240.017390.00750.02489
April20240.026660.00750.03416
March20240.04010.00750.0476
February20240.048810.00750.05631
January20240.043970.00750.05147
MonthYearSDG&E $/kWhSDCP Bonus PremiumSDCP $/kWh
December20230.044150.00750.05165
November20230.045120.00750.05262
October20230.045910.00750.05341
September20230.047370.00750.05487
August20230.044110.00750.05161
July20230.046120.00750.05362
June20230.053360.00750.06086
May20230.064690.00750.07219
April20230.079140.00750.08664
March20230.090790.00750.09829
February20230.145380.00750.15288
January20230.06380.00750.0713
MonthYearSDG&E $/kWhSDCP Bonus PremiumSDCP $/kWh
December20220.053320.00750.06082
November20220.053520.00750.06102
October20220.052530.00750.06003
September20220.045530.00750.05303
August20220.038130.00750.04563
July20220.032110.00750.03961
June20220.028870.00750.03637
May20220.033870.00750.04137
April20220.043650.00750.05115
March20220.050910.00750.05841
February20220.054720.00750.06222
January20220.056520.00750.06402
MonthYearSDG&E $/kWhSDCP Bonus PremiumSDCP $/kWh
December20210.05470.00750.0622
November20210.055280.00750.06278
October20210.051880.00750.05938
September20210.041440.00750.04894
August20210.030630.00750.03813
July20210.022610.00750.03011
June20210.024480.00750.03198
May20210.027020.00750.03452
April20210.030680.00750.03818
March20210.033640.00750.04114

Understanding Your NEM Bill

San Diego Community Power customers receive one bill from SDG&E. Community Power appears as a line item on your SDG&E bill, but this is not an extra charge. This is merely replacing the electricity generation charge that you would otherwise pay to SDG&E.

Monthly vs. Annual Billing

Because most NEM customers are net consumers, Community Power defaults NEM customers to monthly billing, which allows you to receive smaller bills each month rather than one large bill at the end of the relevant period.

Annual billing may be preferable if you are a net generator in at least one month during your true-up period since it applies all charges and credits at the end of your true-up period. This can allow a month of net consumption earlier in the year to be offset by later months of net generation.

For both monthly and annual billing, annual true-up cash-outs are based on the total cumulative usage of your account over the course of your 12-month relevant true-up period.

To update your billing preference to annual billing, please fill out the form below. However, please note the following:

You must be a NEM customer with an interconnection date prior to April 15, 2023.
You must update your billing preferences at the time of your true-up, before you have been billed by Community Power.
You will not be able to return to monthly billing for a full 12 months.

Frequently Asked Questions

Yes. If you are an existing customer who installed an eligible renewable energy self-generation system before April 15, 2023, learn more about our Net Energy Metering (NEM) program on our Net Energy Metering page.

If you applied for interconnection of an eligible renewable energy self-generation system on or after April 15, 2023, or if you have reached the end of your 20-year legacy period on NEM 1.0, learn more about our Solar Billing Plan (SBP) on our Solar Billing Plan page.

According to SDG&E, changing service providers has no effect on rate schedules or Net Energy Metering (NEM) interconnection. This includes customers automatically enrolled into San Diego Community Power service and those who opt out of San Diego Community Power service. Customers will not need to reapply for interconnection when they change service providers as they are still under the same interconnection agreement regardless of their electricity service provider.

NEM customers can opt out of San Diego Community Power service and return to SDG&E at any time. Please note, however, that an opt out will result in a premature true up, and SDG&E will set your renewed annual true up date to align with your return to SDG&E service.

SDG&E may make changes to NEM 1.0 and 2.0 parameters in the future. Visit SDG&E’s website for more information.net

No, your lease or PPA provider arrangement will continue as is.

Because most Net Energy Metering (NEM) customers are net consumers (consuming more energy than they generate), San Diego Community Power defaults NEM customers to monthly billing, which allows you to receive smaller bills each month rather than one large bill at the end of the relevant period.

Annual billing may be preferable if you are a net generator (generating more energy than you consume) in at least one month during your true up period since it applies all charges and credits at the end of your true up period. This can allow a month of net consumption earlier in the year to be offset by later months of net generation.

For both monthly and annual billing, annual true up Net Surplus Compensation (NSC) is based on the total cumulative usage (kWh) of your account over the course of your 12-month relevant true up period.

To update your billing preference to annual billing, fill out this form. However, please note that:

You must be a NEM 1.0 or NEM 2.0 customer with an interconnection date prior to April 15, 2023;

You must update your billing preferences at the time of your true up, before you have been billed by San Diego Community Power;

And you will not be able to return to monthly billing for a full 12 months.

At the time of your annual NEM true-up, we will issue you compensation up to the value of your NEM balance for any Community Power charges that were applied over the course of the relevant true-up period.

This means that if you have NEM credits remaining at the time of your true-up, we will apply those back to your account, either as a rollover or a cash out, for Community Power charges that were applied over the past year.

If you were a net generator (produced more electricity than you used) over the true-up period, we will add your NEM Balance Credit Refund to your Net Surplus Compensation (NSC) and any potential rollover credits from the last true-up period. If that cumulative value is more than $100, we will issue you a check. If it is under $100, we will roll it over to your NEM balance to offset future Community Power charges in subsequent relevant periods.

If you were a net consumer (used more electricity than you produced) over the true-up period, we will add your NEM Balance Credit Refund back to your NEM balance to offset future Community Power charges in months where you use more electricity than you produce.

The several differences between Net Energy Metering (NEM) and Solar Billing Plan, including:

NEM customers have a legacy period of 20 years from their Permission to Operate date. Solar Billing Plan customers will have a legacy period of 9 years from their Permission to Operate date.

NEM customers are required to be on a time of use rate. Solar Billing Plan customers are required to be on a “highly differentiated” time of use rate, EV-TOU-5 for residential customers. On EV-TOU-5, electricity is more expensive during the time of the highest demand and less expensive at other times. Non-residential Solar Billing Plan customers will remain on their existing rate schedule.

NEM’s export rate is based on retail rates. Solar Billing Plan’s export rate is based on the Avoided Cost Calculator (ACC), which varies by hour and month and is closely aligned with wholesale rates.

NEM customers have the option to enroll in annual billing so that their billing is applied once at the time of their annual true up. Solar Billing Plan customers are billed monthly and will not be eligible for annual billing.

For more information, view our Rooftop Solar page.

Because you will be automatically enrolled in Community Power’s generation services at the time of your true up, your enrollment should be a seamless transition and will not impact your existing credits with SDG&E. You will also maintain the same true up date as before.

The few differences include:

Monthly Billing: Community Power’s default billing option for our NEM customers is monthly billing. This means that we perform monthly account adjustments to avoid a large true up bill at the end of the year for your electric generation services. If you wish to maintain annual billing, you can fill out our Annual True Up Notification Form before your account transitions over to Community Power or at the time of your true up.

Net Surplus Compensation Rate: At the end of the 12-month relevant true up period, Community Power will pay net generators (as measured in annual kWh, not bill credits) for the surplus electricity at the applicable Net Surplus Compensation (NSC) rate, plus our bonus incentive, which is $0.0075/kWh. NSC rates vary each month, but our bonus incentive of $0.0075 per kWh will always be added to it. View the current NSC rate here.

Net Surplus Compensation Annual Cash Out: If your net surplus compensation amount is above $100 per account, we will automatically issue you a check. If it’s less than $100, we will carry that forward as a rollover to the next year to help offset any consumption charges in the future.

More questions?