Net Energy Metering FAQ's
Updated October 2011
End of Year Deadline
If you want a Permission to Operate (PTO) letter to be issued in 2011, you must submit paperwork by the following deadlines:
- Application, SLD, signed Agreement: 11/4/2011
- Final Inspection: 12/1/2011
NEM Interconnection Handbook
SCE is pleased to announce the publication of the NEM Interconnection Handbook, an essential technical guide for all self-generation installers in SCE territory.
Paperwork Administrators
On June 22, 2011, SCE hosted an NEM Interconnection Paperwork webinar for employees of installers who handle interconnection paperwork. The webinar covered important tips and tools to avoid returns and speed through interconnection.
Below is the webinar, broken down into chapters based on topic. To jump to another chapter, simply click on the chapter selector (the first icon in the bottom right hand list of icons) within the player.
Also, be sure to download the template Single Line Diagram (SLD) cover page (PDF).
Please download the NEM Interconnection Checklist for Solar & Wind Projects (PDF) to guide you through the interconnection process, and review the NEM Fact Sheet (PDF) for more information about the NEM program and what to expect.
Net Energy Metering Cap Data
SCE’s Net Energy Metering (NEM) program is designed to benefit customers who generate their own electricity using solar, wind, biogas, fuel cell or other eligible technologies. Learn more.
Frequently Asked Questions
- 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)
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.
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.
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.
Q5. How do I apply for Net Energy Metering (NEM)?
Refer to the NEM Interconnection Checklist for Solar & Wind Facilities
- Submit the initial Application Packet as early as possible, long before the system is installed and the final inspection by the local building and safety department is scheduled. The Application Packet consists of:
- NEM Interconnection Application
- Simplified One-Page NEM Interconnection Application for new solar or wind facilities up to 10 kW using CEC-certified equipment, point of connection below the main circuit breaker (load-side tap) and no back-up generation.
- 14-Page Generating Facility Interconnection Application (GFIA) for new solar or wind facilities over 10 kW, expansions of any size, projects using non CEC-certified equipment, point of connection above the main circuit breaker, back-up generation, or fuel cell facilities.
- Sample mark-up of 14-page GFIA for NEM Interconnection
To expedite processing, we recommend you submit a signed NEM Agreement for Renewable Technologies along with the Application Packet. We no longer require an original signature on the Agreement so the signed Agreement may be faxed or mailed to us. If we have not receuved a signed Agreement by the time we review the Application Packet, we will mail one to the customer to sign and return to us.
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."
- NEM Interconnection Application
-
Submit a copy of the Final Electrical Inspection and Approval from the local Building & Safety department as soon as it is issued.
Application documents may be submitted via email to customer.generation@sce.com or by fax to (626) 571-4272. As of March 31, 2011, we will no longer accept documents via mail except for large format diagrams that cannot be submitted electronically. Our mailing address is:
Attn: NEM Program
SCE Customer Solar & Self-Generation
Southern California Edison
P.O. Box 800
Rosemead CA 91770-0800Once 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. Note that most SCE meters are NEM-compatible so a meter change is usually not required. The current version of the Smart Meter, however, is not NEM-compatible so we coordinate with our metering department to make sure pending NEM customers are not included in the Smart Meter roll-out.
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) 701-7869Q7. 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.
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.
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.
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, and the system size is less than 30 kW, you don’t need to do anything. You will be automatically enrolled in the NEM program, and additional information will be enclosed with your bill.
If your system is > 30 kW, or modifications are made to the original installed system, you will need to sign a new NEM Interconnection Agreement to continue operating the renewable generator. SCE will mail an Agreement for you to sign and return soon after you move int, or you may email a signed Agreement to customer.generation@sce.com.
Get Adobe® Reader
Print