If you are currently being served under NEM 1.0 or 2.0 and generate more electricity than you use in a given month, you will receive a credit for it at retail rates based on the Time-of-Use periods (e.g., Peak/Off-Peak) of your rate schedule. If you are instead on a tiered rate (e.g., DR), you will receive generation credits at the retail rate of the Total period value if you are a net generator of electricity. If you use more energy than you generate, you will be billed for it at the same retail rate. Essentially, we pay you monthly for the electricity you produce and send to the grid at the same rate that we would have charged you, if you were drawing power from the grid.
During months when you are a net generator, you generate credits that are banked for future use. During a month when you are a net consumer of electricity, we use those credits to help offset the cost. If you don’t have enough credits banked to cover all of the charges for any given month, we will bill you for the difference. This helps you to better budget electricity costs and avoid surprise true-up bills from SDCP.