Updated September 17, 2008
For additional information regarding SCE's Net Energy Metering Program, please contact Laura Rudison, NEM Project Manager by calling (626) 302-9680
or via email at LauraDiane.Rudison@SCE.com.
Questions
(Please click within question text to be directed to answers.)
- What is Net Energy Metering?
- How does NEM work?
- What are the NEM eligibility requirements?
- What type of metering is required and do I have to pay for it?
- What is the definition of small business customer vs. large?
- How does a customer apply for Net Energy Metering (NEM)?
- Who do I contact for an NEM Application and Interconnect Agreement or NEM questions?
- Who do I contact for general questions about Net Metering, about my NEM Billing, or about Late Notices as a Net Metering customer?
- Are there any Incentive Programs available to Customers interconnecting a renewable generator under the Net Energy Metering program?
- Does SCE pay me money for excess energy I produce?
- What happens to my kWh energy credits at the end of my 12-Month Relevant Period?
- I was approved to interconnect, but it took a while before I started receiving kWh credits. Why?
- A new party has moved to a residence with a solar system. Do they need to apply for NEM?
- I installed a solar system, why is my bill so high?
Q1. What is Net Energy Metering?
Answer: Net Energy Metering (NEM) is a program designed to benefit Southern California Edison (SCE) customers who generate their own electricity. To qualify, an eligible SCE customer must produce energy from an electric generating system using solar, wind, biogas, or fuel cell technology, or a hybrid generating system.
Note: Net Energy Metering does not allow you to sell power back to SCE or into California's wholesale electricity market. If you plan to participate in the market, see Merchant Generators.
Q2. How does NEM work?
Answer: The NEM program uses a bi-directional meter to measure and/or 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.
At the end of each billing period, you may receive a credit for any energy you have generated that is in excess of the energy you have consumed. If your energy consumption is greater than your energy produced you will be billed for the net difference. You will be billed monthly and required to pay for certain other applicable charges whether or not you are a Net Energy Metering customer.
For additional details, please refer to the NEM Fact Sheet (PDF).
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Q3. What are the NEM eligibility requirements?
Answer: This program is currently available to most residential, commercial, industrial, and agricultural and water pumping customers who receive electrical service directly from SCE. You must install and interconnect an eligible generating system.
Your electric generating system must be powered by solar, wind, biogas, or fuel cell technology, or a hybrid generating system, and must not exceed 1,000 kilowatts (1 MW) in total nameplate rated capacity [CEC-A/C].
You must have a bi-directional meter, one that measures electricity flow in two directions, and with certain net metering programs, such as Pay for Performance, you may be required to have an interval data recording (IDR) meter. If you do not have the required meter, you may be responsible for the purchase and installation costs of the appropriate meter.
The generating system must be located on your premises and be interconnected to operate in parallel with SCE's electrical system.
You must complete all required documentation (application, contract, building permits, etc.) and receive written approval from SCE before interconnecting your generating system to operate in parallel with SCE's electrical grid.
Direct Access Customers: Customers who procure power from another provider must contact their Electric Services Provider (ESP) to confirm their ESP will support the NEM program. The ESP must provide notice of eligibility in writing to SCE. If the ESP does not support NEM, SCE's Direct Access Support Team will explain additional customer options. You can reach the support team by calling (800) 799-4723.
Other eligibility requirements: Net Metering is not applicable to other energy programs described as "not eligible for the Net Metering Program."
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Q4. What type of metering is required and do I have to pay for it?
Answer: 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. Other customers may require cumulative bi-directional meters.
If the service account does not have a compatible meter, SCE may* charge the customer to install or reprogram their meter.
Please note that approval to operate a renewable generator may not always require a meter change. SCE will review each project individually to determine meter compatibility.
*SCE's metering charges are currently applicable only to Direct Access customers.
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Q5. What is the definition of small business customer vs. large?
Answer: Small business customers are customers on a GS-1 or PA-1 rate option, whose monthly maximum demand is < 20kW. Large customers are those on a GS-2 or PA-2 and higher demand rate and whose monthly maximum demand is > 20kW.
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Q6. How does a customer apply for Net Energy Metering ("NEM")?
Answer:
Step 1: Visit one of the following links to obtain an application for NEM
Step 2: Return the two original signed copies of the NEM Interconnection Agreement to SCE:
Southern California Edison Company
Attn: Laura Rudison, Project Manager
Net Energy Metering Program
P.O. Box 800, GO1, QUAD 4D
Rosemead, CA 91770
The NEM Interconnection Agreements will be mailed to the Customer of record upon acceptance by SCE of the interconnection application packet. In addition, the NEM Interconnection Agreement (PDF) is available online to facilitate its incorporation with the initial packet that is sent via US mail.
Once the interconnection agreements are received with the Customer's* "wet signature" , they will be processed for signing by SCE and one copy of the executed agreement will be returned to the customer when the interconnection approval is granted.
*IMPORTANT: Please note the individual signing the Interconnection Agreement must be duly authorized to bind the Customer of Record to its terms. Accordingly, 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."
Step 3: Provide a copy of the local or county Final Inspection Clearance to SCE by:
Step 4: Once all applicable SCE project reviews are completed and all required interconnection documents, including the executed NEM Agreement and Building & Safety Final Inspection Clearance have been reviewed and accepted by SCE, the customer will receive an Interconnection Approval Letter within three business days of approval to begin operating the generating system.
Step 5: After being authorized to interconnect to the SCE's grid, the customer begins to participate in the NEM Program on the next meter read date after the date of the NEM Interconnection Approval Letter, or the next meter read date after the installation date of the appropriate meter, if a meter change was required.
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Q7. Who do I contact for an NEM Application and Interconnect Agreement or NEM questions?
Answer: You may contact the Net Metering Project Manager, Laura Rudison by calling (626) 302-9680 or via e-mail at LauraDiane.Rudison@sce.com. Or, if you prefer to look up the information yourself, you may visit our Customer Generation main page.
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Q8. Who do I contact for general questions about Net Metering, about my NEM Billing, or about Late Notices as a Net Metering customer?
Answer: SCE's Net Metering Customer Call-Centers:
- Residential: (866) 701-7868
- Non-Residential: (866) 701-7869
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Q9. Are there any Incentive Programs available to Customers interconnecting a renewable generator under the Net Energy Metering program?
Answer:
Incentive Program No. 1: California Solar Initiative (CSI) – 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. Available in 2008 for systems under 50kW (CEC-AC) and 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). Available in 2008 to all systems > 50kW (CEC-AC) and by January 2010 all systems >30kW (CEC-AC) must be on the PBI incentive structure.
For more information visit SCE's California Solar Initiative main page.
Incentive Program No. 2: New Solar Homes Partnership (NSHP) – 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 at the Go Solar California website.
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Q10. Does SCE pay me money for excess energy I produce?
Answer: No. NEM customers are provided kWh energy "credits". These credits are used to offset the energy that you consume. Additionally, these energy credits do not offset non-energy related charges like your customer charge.
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Q11. What happens to my kWh energy credits at the end of my 12-Month Relevant Period?
Answer: Upon completion of the current 12-month period (Relevant Period), an account true-up is completed and any excess kWh and associated credits are forfeited for the current period, and the next 'new' 12-Month Relevant Period will begin. The customer does not get paid for excess kWh and associated credits, nor do the excess kWh and associated credits get carried forward to their new relevant period. Please refer to the NEM tariff for more details.
Q12. I was approved to interconnect, but it took a while before I started receiving kWh credits. Why?
Answer: Although SCE may provide its customer with an advance 'courtesy' turn-on of the generating system before the appropriate metering is installed, SCE has 30 business days to install an appropriate net meter and begin billing the customer on the NEM Rate Tariff.
Q13. A new party has moved to a residence with a solar system. Do they need to apply for NEM?
Answer: If there have been no modifications to the original installed system a new customer will only need to sign a new interconnection agreement to continue operating the renewable generator. Please note that the Interconnect 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.
Q14. 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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