Solar Billing Plan (SBP)

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

What is SBP?

If you have solar, Solar Billing Plan (SBP), also known as Net Billing Tariff or NEM 3.0, is a new method of compensation for the energy that your solar system produces. It’s intended to promote grid reliability and incentivize battery storage. If you recently installed solar, you are likely on the SBP.

With SBP, your electricity meter tracks both your imports, or how much energy you use, and your exports, or how much energy your solar system sends to the electric grid. The electricity that is imported and exported is measured separately and imported and exported power are valued differently.

Batteries can store the renewable energy your system produces and supply that power during peak demand hours, usually in the evenings when the sun is down and energy use is high.

SBP customers with solar and battery storage systems can reduce their energy bills by storing energy in their batteries during the day to draw on during peak demand hours. This increases the amount of renewable energy available during peak demand hours and decreases the need for energy from fossil fuels.

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.

How Does SBP Work?

With SBP, export compensation rates will be based on an Avoided Cost Calculator, or ACC. These rates vary by hour and month and are closely aligned with wholesale energy rates.

If you’re a residential customer, import charges are based on the rates under the EV-TOU-5 rate schedule. If you’re a commercial customer, import charges are based on the rates under your existing rate schedule. For more information on rate schedules, visit our Mga Presyo ng Residential or Commercial Rates pages.

All SBP charges, including fixed charges and any net charges due to San Diego Community Power or SDG&E, are due monthly.

Community Power’s SBP Program

We developed our SBP program with our customers in mind. We offer one of the most generous SBP programs in California, helping us grow the regional solar industry, promote grid reliability and incentivize solar and battery storage.

Community Power provides customers with generation adders that boost dollar credits during electricity export to the grid and reduce the payback period for solar systems. We provide two generation adders:

Community Power Adder
Amount
WHO’S ELIGIBLE

Standard Residential and Commercial Adder

$0.0075 for every kWh exported

All new residential and commercial customers enrolled in SBP

Not available for NEM customers transitioning to SBP

Equity Adder

$0.11 for every kWh exported
All new residential customers currently enrolled in California Alternate Rate for Energy (CARE) or Family Electric Rate Assistance (FERA) programs*

Not available for NEM customers transitioning to SBP

*Unenrollment or lapse in enrollment in either program will cause customers to receive the Standard Adder.

Community Power and SDG&E each offer SBP programs with slight differences.

Community Power’s SBP Program

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

Equity adder of $0.11/kWh for new SBP customers enrolled in CARE/FERA

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

No annual true-up adjustment applied for electricity generation service of net generators

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 SBP Program

Net Surplus Compensation (NSC) applied at wholesale rate for all SBP customers

No additional adders for CARE/FERA

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

Annual true-up adjustment applied, resulting in additional charge for net generators at the time of true-up

Customers must contact SDG&E to request refund checks

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 exported more than you imported over the annual true-up period, 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 NSC is greater than $100, 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 Community Power charges.

Balance Credit Refund

SBP customers are billed monthly. If you ended your true-up period with an export credit balance (seen on your bill as your “SBP Credit Balance”), Community Power will apply these credits as a rollover for charges you accrued over your true-up period.

buwanYearSDG&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
buwanYearSDG&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
buwanYearSDG&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
buwanYearSDG&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
buwanYearSDG&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

Enrollment

If you applied for interconnection of your solar panels on or after April 15, 2023, you’re a SBP customer.

SBP is the replacement for Net Energy Metering (NEM), as established by the California Public Utilities Commission. NEM is no longer available to new solar customers in California. Learn more on our NEM page.

Existing NEM 1.0 and NEM 2.0 customers will remain on NEM until the completion of their legacy period or 20 years from the time their system was connected to the electric grid, after which they will be transitioned to SBP. NEM customers will also be transitioned to SBP if they increase the capacity of their generation system by more than 10% or 1 kW or if they choose to switch to SBP. For more information, contact your solar installer.

Rooftop solar panels installed on a modern home, generating clean renewable electricity from sunlight.

Legacy Periods

Customers who interconnected their solar system under SBP will have a nine-year legacy period.

The legacy period is tied to the customer who installed the system, not the system itself or the service address. If that customer moves, the new customer inheriting the system will not keep the original legacy period, unless:

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

NEM customers who transition to SBP after completing their 20-year NEM legacy period do not have an SBP legacy period.

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.

If you have solar, the Solar Billing Plan (SBP), also known as Net Billing Tariff or NEM 3.0, is a new method of compensation for the energy that your solar system produces. The Solar Billing Plan is intended to promote grid reliability and incentivize battery storage. If you recently installed solar, you are likely on the Solar Billing Plan.

For more information, visit our Solar Billing Plan page.

With SBP, your electricity meter tracks both your imports, or how much energy you use, and your exports, or how much energy your solar system sends to the electric grid. The electricity that is imported and exported is measured individually and valued differently from one another.

Batteries can store the renewable energy your system produces to use during peak demand hours, usually in the evenings when the sun is down and energy use is high.

SBP customers with solar and battery storage systems can reduce their energy bills by storing energy in their battery during the day to draw on during peak demand hours. This increases the amount of renewable energy available during peak demand hours, thereby decreasing the need for energy from fossil fuels.

For more information, visit our Solar Billing Plan page.

Existing NEM 1.0 and NEM 2.0 customers will remain on NEM until the completion of their legacy period, or 20 years from the time their system was connected to the electric grid, after which they will be transitioned to SBP. NEM customers will also be transitioned to SBP if they increase the capacity of their generation system by more than 10% or 1 kW, or if they choose to switch to SBP. For more information, reach out to your solar installer.

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.

There are several key differences between San Diego Community Power and SDG&E’s Solar Billing Plan:

San Diego Community Power will apply an additional $0.0075 per kWh adder to SDG&E’s Export Compensation Rate hourly prices for customers with new generating systems. Customers enrolled in California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) will receive a $0.11 per kWh adder. (Please note that NEM 1.0 and 2.0 customers that have either completed or terminated their 20-year legacy period will not be eligible for San Diego Community Power adders.)

San Diego Community Power’s Solar Billing Plan offers an Electricity Export Credit Refund. At the time of your annual true up, San Diego Community Power will apply any export credits you accumulated to San Diego Community Power charges that were applied over the relevant period.

San Diego Community Power’s Net Surplus Compensation (NSC) will be applied exactly the same for Solar Billing Plan customers as it is for Net Energy Metering (NEM) customers: Payment will be based on total net generation and the current NSC rate, plus our adder of $0.0075. SDG&E Solar Billing Plan customers eligible for NSC will have an “Annual True Up Adjustment” applied. Through the Annual True Up Adjustment, SDG&E reclaims credits already compensated to the customer during their annual true up and Net Surplus Compensation process.

For commercial customers enrolled in San Diego Community Power’s Solar Billing Plan program, export credits will be used to offset all aspects of your San Diego Community Power import charges, including demand charges. SDG&E’s Solar Billing Plan mechanics only allow for charges based on usage in kWh to be offset by export credits (excluding demand in kW).

For more information, view our Rooftop Solar page.

More questions?