NEM & Interconnection FAQs
- When I get my CSI-funded solar system installed, will I be “off-grid”?
- What are utility interconnection standards?
- What is net energy metering (NEM)?
- How does NEM work?
- Do I need a special meter to receive CSI incentives?
- Must I go on a time-of-use (TOU) rate as a condition of CSI? Will this cost me more?
- Where can I get more information?
Q1. When I get my CSI-funded solar system installed, will I be “off-grid”?
A. No. The CSI Program only provides incentives to grid-tied solar energy systems, thus CSI participants are not off-grid; rather, their systems produce electricity that flows back onto the grid, which they conversely draw from whenever their systems are not generating energy.
Q2. What are utility interconnection standards?
A. Connecting your solar energy system to the utility grid will require you to enter into an interconnection agreement. SCE has developed a standardized interconnection agreement that includes the terms and conditions under which your solar energy system will be connected to the grid, including technical requirements to ensure safety and power quality. The application and additional information can be found here.
Q3. What is net energy metering (NEM)?
A. Net energy metering (NEM) is a program designed to benefit 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. Please note that NEM does not allow you to sell power back to SCE or into California’s wholesale electricity market.
Q4. How does NEM work?
A. 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 on 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 for certain other applicable charges whether or not you are a net energy metering customer.
Additional information on net energy metering can be found here.
Q5. Do I need a special meter to receive CSI incentives?
A. The CSI Program requires accurate energy production meters for all projects that receive CSI Program incentives. Accurate measurement of solar energy output is of paramount importance to ensure optimum value for both solar owners and ratepayers. For solar energy systems receiving an EPBB incentive, a basic meter with accuracy of ±5 percent is required. For systems receiving PBI payments, an interval data meter with accuracy of ±2 percent is required.
See the list of all incentive-eligible solar equipment—PV modules, inverters and meters.
Q6. Must I go on a time-of-use (TOU) rate as a condition of CSI? Will this cost me more?
A. CSI applicants are not currently required to take service on TOU rates unless otherwise required by other terms of their service until the CPUC develops and makes effective TOU tariffs that meet the requirements of Public Utility Code Section 2851(a)(4). Entities that receive the CSI incentive after the new TOU rates are established must go on the new TOU rates. Most solar customers benefit from TOU rates because solar production replaces peak load and is credited to the customer at the higher-cost peak price.
Q7. Where can I get more information?
A. For additional information on “going solar,” visit www.sce.com/csi or www.gosolarcalifornia.gov.ca.
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