Solar Billing Plan (SBP)

For customers with renewable energy self-generation systems (like solar panels) who interconnected on or after April 15, 2023, learn more about SDCP’s Solar Billing Plan and its benefits.

What is SBP?

The Solar Billing Plan (SBP), also known as the Net Billing Tariff, is the new method of compensating customer-sited renewable energy self-generation, intended to promote grid reliability and incentivize solar and battery storage.

SBP helps promote grid reliability during the early evening, when the sun is down and energy use is high, in part by encouraging the pairing of battery storage with all installations through price signals. Batteries can store renewable energy during low-value hours to use and export during high-value, peak evening hours. This in turn helps decrease the need to generate electricity from fossil-fueled power plants.

Existing NEM customers will remain on their current NEM tariff for 20 years from the time their system was permitted by SDG&E and connected to the electric grid, unless they choose to switch to SBP or increase the capacity of their system by more than 10% or 1kW. After their 20-year legacy period, NEM customers will be transitioned to SBP.

SBP differs from NEM in that all electricity consumed (“imported”) and electricity sent to the grid (“exported”) is now measured individually, valued differently from each other, and no longer netted.

  • With SBP, your electricity meter tracks how much electricity you’re consuming (“importing”) versus generating (“exporting”) to the grid and you will receive bill credits for any surplus energy your system delivers back (“exports”) to the power grid.
  • Under SBP, export rates will be based on an “Avoided Cost Calculator” (ACC) instead of retail rates. These rates vary by hour and month and are closely aligned with wholesale rates.
  • SBP customers with renewable energy systems and battery storage can save money and reduce their utility charges by storing generation in the battery during the day and drawing from it during peak periods.
Bonus

Key Details:

  • Electricity imports and exports are no longer netted by usage volumes (kWh). Only charges and credits are netted.
  • Charges for imports are calculated based on all the imports tracked by your electricity meter multiplied by the rates under the EV-TOU-5 rate schedule.
  • Credits for exports are calculated based on all the exports tracked by your electricity meter multiplied by Avoided Cost Calculator (ACC) rates. These rates vary by hour and month and are closely aligned with wholesale rates.
  • SBP encourages customers to pair their renewable energy systems with battery energy storage systems to store their generation in the battery during the day and export it back to the grid during peak periods.

Benefits of Our Solar Billing Plan

SDCP offers one of the most customer-centric and generous Solar Billing Plans in California. Our tariff was developed with customers in mind and aims to continue the sustainable growth of the solar industry in our region while also promoting grid reliability and incentivizing solar and battery storage.

Generation Adder:

To bring value to our customers and support regional growth in the solar industry, SDCP is providing one of the best generation adders in the state. These adders boost dollar credits generated during electricity export to the grid, thereby reducing the payback period for solar systems so that our customers feel confident in their investments.

We provide two adders:

AdderAmountEligibility
Standard Residential & Commercial Adder$0.0075
for every kilowatt hour exported
All new residential and commercial customers enrolled in NBT
Not available for NEM customers transitioning to NBT.
Equity Adder$0.11
for every kilowatt hour exported
All new residential customers currently enrolled in the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) program.

Disenrollment or lapse in enrollment in either program will cause customers to receive the Standard Adder.
Not available for NEM customers transitioning to NBT.

Net Surplus Compensation:

As a not-for-profit, community-driven electricity provider, SDCP puts our customers at the center of our offerings. This is why SDCP offers one of the most generous Net Surplus Compensation (NSC) processes for SBP customers. Unlike the for-profit utilities that reclaim a portion of your compensation, we pay you in the exact same manner as NEM customers.

At the time of your standard true up period with SDG&E, SDCP will also conduct an electricity true up for the generation portion of your service. We look at how much electricity you generated versus consumed.

If you generated more than you consumed, we will pay you for adding clean electricity to the local grid at the monthly NSC rate from SDG&E, plus SDCP’s bonus incentive of $0.0075/kWh! Click to view the SDCP True Up Monthly Rate Table.

If your NSC is above $100 per account, we will automatically issue you a check. If your NSC is less than $100, we will carry it forward as a rollover to help offset future consumption charges.

View Example Vea un Ejemplo

Generation Credit Carryover:

By default, customers must now be billed monthly instead of annually. In the case that you incurred SDCP usage charges early in your true up period but end your true up with a credit balance, SDCP will apply those credits to any outstanding charges still due. If you have any credits left, we will carry them over as a bill credit for use in the next true up period for your benefit.

Important Details on Our Solar Billing Plan

Please note: NEM 2.0 will apply to completed interconnection agreements submitted before April 15, 2023, and SBP will apply to any interconnection agreements submitted on or after April 15, 2023.

Enrollment:

As established by the California Public Utilities Commission (CPUC), SBP is applicable to all new renewable self-generation systems interconnected on or after April 15, 2023.

The Net Energy Metering (NEM) program is no longer available to new customers unless they interconnected on or before April 14, 2023. The system did not need to be installed prior to this date— only a complete and error-free interconnection application needed to be submitted to SDG&E.

Existing NEM customers will enroll in SBP upon the completion of their 20-year NEM legacy period. NEM 1.0 customers that completed their legacy period prior to December 2023 will be transitioned to SBP at the time of their annual true up date in 2024.

Existing NEM customers that make changes to their system that increases the capacity by more than 10% or 1 kW (whichever is greater) will be transitioned to SBP. Check with your solar installer for more information.

SBP Legacy Periods

New customers that interconnect a new renewable self-generation system under SBP will have a nine-year legacy period.

The SBP legacy period is now tied to the original customer that installed the system and no longer to the system or address. If the original customer moves, the new customer inheriting the system will not get to keep the legacy period. There are two exceptions to this:

  1. For residential customers, the inheriting customer is the legal partner of the original customer, or for commercial customers, the account-holding entity continues to be majority controlled by the same underlying individuals or entities.
  2. A building/contractor sells a new construction home to the new owner.

Additionally, NEM customers transitioning to SBP after completing their 20-year legacy period do not have an SBP legacy period.

Billing:

Customers served under SBP are required to pay monthly for all applicable charges including the fixed charges and any net charges due to SDCP and SDG&E. The annual billing option is not available under Solar Billing Plan/ Net Billing Tariff.

Billing for SDCP’s SBP will begin for usage on or after December 15, 2023. Customers that interconnected between April 15, 2023 and December 14, 2023 have been temporarily billed under NEM. These customers will experience a true up and will fully transition to SDCP’s SBP on their meter read date on or after December 15, 2023. Because these customers were served under NEM on an interim basis, they are not subject to the 20-year NEM legacy period.

Sample Bill from SDG&E

We will continue to update our website with additional details as our SBP program develops. If you have questions, please reach out to us at customerservice@sdcommunitypower.org.