Updated March 2010
Please review the NEM Fact Sheet (PDF) for more information about the NEM program and what to expect.
- How does the Net Energy Metering program work?
- What are the NEM program eligibility requirements?
- Does SCE pay me money for excess energy I produce?
- Are there any Incentive Programs available to Customers interconnecting a renewable generator under the Net Energy Metering program?
- How do I apply for Net Energy Metering (NEM)?
- What happens once I’m enrolled in the NEM program?
- What type of metering is required and do I have to pay for it?
- I received my Permission to Operate letter, but it took a while before I started receiving kWh credits. Why?
- I installed a solar system, why is my bill so high?
- I’m moving into a house with a self-generation system already installed. What do I need to do to benefit from the NEM program?
Q1. How does the Net Energy Metering program work?
Answer: Net Energy Metering (NEM) is a program designed to benefit Southern California Edison (SCE) customers who generate their own electricity using solar, wind, biogas, or fuel cell technology, or a hybrid of these technologies.
The NEM program uses a bi-directional meter to track the "net" difference between the amount of electricity you produce and the amount of electricity you consume during each billing period. This can be accomplished on a cumulative basis or on a time-of-use basis, depending upon your rate schedule.
As a Residential/Small Commercial NEM customer, you will continue to receive monthly bills, but only for non-energy related charges such as taxes and fees. On an annual basis, you will be billed for electricity based on your net use for the previous year - ie. the amount of electricity you used minus the amount you generated. Large Commercial/Industrial NEM Customers will continue to receive monthly bills which will require payment of the monthly non-energy related charges (taxes and standard billing fees) and “Net” energy charges.
For additional details, please refer to the NEM Fact Sheet (PDF)
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Q2. What are the NEM program eligibility requirements?
Answer: The NEM program is currently available to most residential, commercial, industrial, and agricultural and water pumping customers who receive electrical service directly from SCE and who install and interconnect an eligible generating system.
An eligible generating system is:
- Powered by solar, wind, biogas or fuel cell, or a hybrid of these technologies,
- Less than 1,000 kW (1 MW) in total nameplate rated capacity (CEC-A/C).
- Located on your premises and interconnected to operate in parallel with SCE's electrical system. See Interconnection requirements.
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Q3. Does SCE pay me money for excess energy I produce?
Answer: In accordance with Assembly Bill 920, signed into law on October 11, 2009, NEM customers are eligible to receive compensation for net surplus electricity in 2011. For more information, visit the AB920 page.
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Q4. Are there any Incentive Programs available to Customers interconnecting a renewable generator under the Net Energy Metering program?
Answer: Yes.
California Solar Initiative (CSI)
CSI is available to customers installing an eligible solar electric generating system with a nameplate rating up to 1000kW [CEC-A/C]. Incentives are paid either as a lump sum payment for smaller systems, or over the course of five years for larger systems. The program's two incentive payment types are:
- Expected Performance Based Buy Down (EPBB): Pays a one-time lump sum payment ($ per watt) based on the system's estimated future performance. EPBB is available for systems under 30kW (CEC-AC) beginning in January 2010.
- Performance Based Incentive (PBI): Payments will be made over a 5-year period on a monthly basis ($ per kilowatt-hour). As of January 2010 all systems >30kW (CEC-AC) must be on the PBI incentive structure.
For more information, visit SCE's California Solar Initiative site.
New Solar Homes Partnership (NSHP)
NSHP is available to customers installing eligible solar photovoltaic (PV) systems on new residential buildings. The NSHP program provides two incentive structures, one for conventional or market rate housing and another for qualified affordable housing projects.
Additional information is available online on the NSHP website.
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Q5. How do I apply for Net Energy Metering (NEM)?
- Submit an Interconnection Application Packet
An Interconnection Application Packet includes the following required documents:
- Interconnection Application
- Single Line Diagram (SLD) of the system
- Download the SLD (PDF).
- A custom SLD is required for systems using the GFIA
- A copy of the customer’s SCE electric bill
- Sign and Return an Interconnection Agreement
To speed processing, submit an Interconnection Agreement (PDF) (included in the application) signed by the customer of record on the SCE service account along with the application packet. If a signed Agreement is not received with the application, an Agreement will be sent to the customer for signature before the Permission to Operate (PTO) letter is issued.
Note: the individual signing the Interconnection Agreement must be duly authorized to bind the Customer of Record to its terms.
For residential customers, if the individual is not the person listed on the electric bill, they must be listed as a spouse on the service account. To add a spouse to an account, please call SCE Customer Service at (866) 701-7868.
For non-residential records, unless the individual is an "owner of a proprietorship", "officer of a corporation," "director or general manager of an agency," or an equivalent official, please also provide documentation showing the signature authority of the individual who does sign on behalf of the "Customer of Record."
- Submit a copy of the Final Electrical Inspection and Approval from the local Building & Safety department
Application documents may be submitted via fax to (626) 571-3272, via email to >customer.generation@sce.com or by mail to:
Attn: NEM Program Administrator
SCE Customer Solar & Self-Generation
Southern California Edison
P.O. Box 800
Rosemead CA 91770-0800
Once your application packet has been reviewed and accepted, and the final electrical inspection of the system by the local building & safety department has been verified, you will receive a Permission to Operate (PTO) letter with an NEM tag for you to place on your meter to notify SCE meter technicians about the presence of your generating system and as proof of your permission to operate.
For regulatory and safety reasons, your generating facility must not be interconnected prior to your receipt of the PTO letter and placement of the NEM tag on your meter.
Within 30 days of the date of your PTO letter, you will be enrolled in the NEM program, which will include a meter change if one is required and transition to the NEM Rate Tariff.
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Q6. What happens once I’m enrolled in the NEM program?
Answer: Once you are enrolled in the NEM program, you’ll continue to receive monthly bills listing non-energy related charges, such as taxes and fees. On an annual basis, your bill will also include ‘net’ electricity charges – ie. charges for the amount of energy you used minus the energy you produced.
If you have additional questions about your meter or bill, please contact the SCE's Net Metering Customer Call-Centers:
Residential Customers: (866) 701-7868
Commercial Customers: (866) 701-7869
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Q7. What type of metering is required and do I have to pay for it?
Answer: All customers participating in Net Energy Metering (NEM) must have a bi-directional meter, one that measures electricity flow in two directions. If your current meter is not bi-directional, SCE will replace it with a bi-directional meter as part of enrolling you in an NEM program. Note: SCE charges Direct Access customers for meter replacement.
Customers on a time-of-use rate (GS-2 or PA-2 and greater demand rates), Direct Access, or who participate in certain net metering programs, such as Pay for Performance, will require an interval data recording (IDR) meter.
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Q8. I received my Permission to Operate (PTO) letter, but it took a while before I started receiving kWh credits. Why?
Answer: Within 30 days of the date of your PTO letter, you will be enrolled in the NEM program, which will include a meter change if one is required and you’ll begin to the billed on the NEM Rate Tariff.
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Q9. I installed a solar system, why is my bill so high?
Answer: The weather conditions play a key role in solar generation system kWh production. If weather conditions are cloudy or rainy, the system will not generate as much as it would during clear and sunny conditions. You should also be conscious of the energy that you are using such as air conditioning, pool filters, etc.
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Q10. I’m moving into a house with a self-generation system already installed. What do I need to do to benefit from the NEM program?
Answer: If there have been no modifications to the original installed system, you will only need to sign a new Interconnection Agreement to continue operating the renewable generator. Please note that the Interconnection Agreement is not transferable, therefore, it's important to advise the Customer Service representative when requesting your new electric service that you want to transition your new account into the NEM program.
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