Find answers to Frequently Asked Questions about Net Energy Metering
Common Questions About Your NEM 2.0 Applications Frequently Asked Questions
Common Questions About Your NEM 2.0 Applications FAQ
Yes. If your application has incorrect information or is missing required documents, we send an email notification to you and/or your contractor. If it is a minor issue, you will still be eligible for NEM 2.0, and we will send you instructions and options for correcting your application.
When status updates are available for your application, our NEM 2.0 Online Application System will send you and/or your contractor an email, including details. If you would like even more information about your application status, please reach out to your contractor or installer for assistance. They have direct access to your application, and they are responsible for completing any additional requirements.
If you are self-installing your system, please visit the NEM 2.0 Online Application System for updates on your application status.
To cancel your NEM application, please reach out to your contractor or installer and ask them to withdraw your application. When that is done, we will send you and/or your contractor an email confirmation.
If you attempt to reach out to your contractor or installer and they do not reply, you have the option to send a withdrawal request to Customer.Generation@sce.com.
If you are self-installing your system, please visit the NEM 2.0 Online Application System to withdraw your application.
We will continue to bill your account under your current NEM rate plan until your 20-year legacy period expires, or until your account becomes ineligible to remain on your current NEM rate plan (whichever comes first). We will then automatically transfer your account to the new Solar Billing Plan.
If you submitted your application and all required documents, free of any major deficiencies, by 11:59 p.m. PST on April 14, 2023, you made the deadline, and you are eligible for NEM 2.0.
If we received your application by the deadline, we sent you and/or your contractor a confirmation email letting you know we received it.
If you missed the deadline, you would not have an opportunity to apply for NEM 2.0. However, you can apply for SCE’s Solar Billing Plan, a new program available to customers who install eligible renewable generating systems, such as solar or wind.
- Applications submitted before the April 14, 2023 deadline will continue to be reviewed for NEM 2.0 eligibility. We will review your application to confirm it has all the correct information and required documents.
- If your application has all the correct information and required documents, your project will be eligible for NEM 2.0 until April 14, 2026.
- If we find an issue with your application, such as incorrect information or missing documents, we will send a notification email to you and/or your contractor with instructions for correcting your application.
- Once your project receives final approval, we will issue your Permission to Operate, which will authorize you to operate your solar generating system.
- Within a few billing cycles, we will enroll your account in NEM 2.0 and set it up for NEM billing.
If you received an email notification of a deficiency in your application, it means something was missing or incorrect. This may include (but is not limited to) inaccurate account information, missing documentation, or inconsistencies between the application and required documentation. The email notification you received included a list of issues to resolve to correct your application.
After your application is corrected, we may require additional documents. For example, if you have an energy storage project with an A/C disconnect, we may ask you to provide a Plot Plan document before we can issue your Permission to Operate.
We received a large volume of applications, so the review process may take more than 30 business days. After the review is complete, if your application is a simple, standard interconnection request and it has all the correct information and required documents, you may receive your Permission to Operate within a few business days. However, if your application is a more complex interconnection request, it will take more time to process and conduct an additional technical and engineering review.
Once you receive your Permission to Operate, we will enroll your SCE account in NEM 2.0 and set up your billing. We are currently experiencing bill setup delays for customers who have received their Permission to Operate. However, we typically set up NEM billing within a few billing cycles. Your first NEM bill will include any eligible credits for surplus energy you generated and supplied to the grid. Learn more about your NEM bill.
If you experience a delay beyond the normal processing time, please contact SCE Customer Service at 1-866-701-7868 for NEM residential customers, or 1-866-701-7869 for NEM business customers, and a representative will be glad to assist you.
About NEM Frequently Asked Questions
About NEM FAQ
Net Energy Metering (NEM) is available to SCE customers who produce their own electricity through an eligible renewable generating system. The NEM option allows you to receive credit(s) for the surplus electricity you supply to the electric grid. This credit is applied to your energy bill to offset all, or part of the costs associated with the energy you consume from the grid each month.
Once enrolled in the NEM program, SCE uses a bi-directional meter to track the amount of electricity exported to the grid by your generating system as well as the amount of electricity you consume from the power grid during each billing period. SCE will then calculate the “net” difference between your consumption and the exported energy to determine the final charges for your electricity.
If you have an open and active NEM application in progress, you need to meet the following criteria:
- Install NEM-eligible renewable energy system, e.g., solar PV, wind, fuel cell, etc. (the generating system’s capacity must be sized to the customer’s onsite historical usage).
- Have a compatible meter. Customers with a SMART meter already meet this requirement, although SCE must still program the meter. Customers who prefer not to have a SMART meter (opt-out customers) may have other metering options (subject to availability by region and inventory).
- The generating system must be sized to offset, but not exceed the customer’s onsite usage. In general, SCE estimates the annual generation (kWh) of your proposed system size and compares it to the previous 12 months of your kWh usage history.
NEM customers are required to take service on a Time-of-Use (TOU) rate. If you are not already on a TOU rate, your account will be defaulted to TOU-D-4-9. To learn more about the available TOU rate options, please click here.
Although processing times may vary based on application volume, simple and standard (solar-only) interconnection requests that have all the correct information and required documents, may receive Permission to Operate within 10 business days. Complex interconnection requests, i.e., paired storage or non-standard metering, will need more time to process as they require additional technical and engineering review.
We strongly recommend that you or your contractor submit the application, Single Line Diagram, signed Interconnection Agreement, final electrical permit approval issued by the local building department, and any other applicable documentation all at once to expedite the review of your interconnection request. This allows ample time for us to evaluate program eligibility, conduct a technical review of the proposed system and initiate a meter change, if necessary. If a meter change is required, we will arrange the installation with our local planning department before PTO is issued.
All customers participating in NEM must have a compatible meter to register the amount of electricity consumed from the grid, as well as any surplus energy your system generates and exports back to SCE. If your current meter is not compatible, we will replace or reprogram the meter as part of enrolling you in NEM.
Customers taking service under NEM 2.0 are set up for NEM billing after their application is approved and a Permission to Operate (PTO) is issued. If you are not already on a Time-Of-Use (TOU) rate, as required by the NEM program, your rate will be changed to TOU-D-4-9. You can change your rate to another TOU option that may better serve your needs. For more information, please check out our Residential and BusinessTOU rate plans.
As a residential customer, you will continue to receive monthly bills that will list your non-energy related charges, detail the energy delivered by SCE to you, and any NEM credits for the excess generation you have sent back into the grid. Any excess energy your system delivers to the grid is credited back to your account based on the period (on-peak/off-peak) that the energy was generated.
There are two different billing options available to you as a NEM customer:
- Monthly Billing Option (MBO) – You will receive a monthly statement for both your energy and non-energy-related charges - both of which will be due upon receipt. If you have a surplus credit for your excess energy, it will roll over to the following bill period up to Month 12. The MBO includes a settlement of monthly energy charges and credits (in $’s) over the entire 12-month billing period, which means any remaining dollar-value energy credits are used to offset energy charges billed to the customer earlier in the billing period. You may have You may have selected this option during your NEM application process, or you can opt-in to MBO by logging-in and submitted this form.
- Annual Billing Option (ABO) – You will receive a monthly statement tracking energy charges, but only your non-energy charges will be due upon receipt. You have the option of paying the energy charges on your statement but are not required to do so. Your bills will detail the running balance of your charges/credits, which will roll over every month up to Month 12. If you have a remaining balance on your energy charges, it will be due at the time of your settlement bill. If you prefer to pay your new energy charges monthly instead of annually, you can opt-in to MBO by logging in and submitting this form.
If your system is sized according to your usage and you manage your energy to maximize the off-peak period of your TOU rate, you should have little to no balance at the end of the relevant period. For either ABO or MBO, you may have a credit under Net Surplus Compensation (NSC). For more details on how NSC works, please refer to the NSC section below in the FAQ.
Once the settlement bill has been issued, any rolling credit balance will be zeroed out and the new 12-month billing period will begin on the next regularly scheduled meter read date.
If you have additional questions about your meter or bill, or the billing options, please contact our Net Metering Customer Call Center:
Residential: 1-866-701-7868
Commercial: 1-866-701-7869
If the renewable energy system is still under the NEM eligibility period and the system size is less than 30 kilowatts (kW), you do not need to do anything. You will be automatically enrolled in the NEM program when you request turn-on service, and you will receive additional information via email.
If the renewable energy system is still under the NEM eligibility period and the system capacity is greater than 30 kW, you will need to sign a new NEM Interconnection Agreement (Form 16-344). If the system is over three years old, it must be inspected (Form 14-903) before you can enroll in the NEM program. We will mail an Agreement and Inspection Form soon after you move in, or you can download the forms and email them to Customer.Generation@sce.com
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When you install solar, an electric panel upgrade is sometimes required by your local building and safety department. This is to ensure your electrical panel is up-to-code and can support an added electrical load.
This is common in older homes and may be necessary depending on the specifics of your system, structure of your home, and changing electricity needs.
Please note that upgrading your electric panel is not the same thing as reprogramming your electric meter. When you go solar, meter reprogramming will be a part of the process and will be handled by SCE and your contractor before you can operate your system.
When adding solar panels to your previously installed system, you must submit a new Interconnection Application with updated information about the changes made to the system, including both new and previously installed equipment. All revised applications follow the same process as any other interconnection request and will receive a new PTO.
To ensure that the system is operating safely and in compliance with our interconnection requirements, SCE recommends that customers not operate any additional equipment until SCE has issued the new PTO.
For more information on this, please see the following question.
NEM 1.0 and 2.0 customers that expand their system’s aggregate capacity by no more than the greater of 1 kW or 10 percent of the original system size, can remain under their respective programs. However, a revised application with the new configuration is still required.
Please note:
- The capacity limits outlined above also apply when adding an energy storage system to an existing solar installation.
- When you are submitting an expansion, if you qualify and intend to remain on your respective program, your interconnection request must be submitted using the ‘NEM 1.0/2.0 Expansion’ option in the drop-down menu for application type. Failure to do so will result in the account being moved to the Solar Billing Plan; SCE cannot guarantee a reversal back to NEM.
If your expansion exceeds the limits stated above, a new application must be submitted under the Solar Billing Plan. Once approved, your account will be transitioned to the Solar Billing Plan, and SCE will set up your account on an applicable TOU rate (if it is not already on one).
Consumer Protection Guide Frequently Asked Questions
Consumer Protection Guide FAQ
To protect consumers installing solar electric systems and participating in the Solar Billing Plan or the NEM plan, the California Public Utilities Commission (CPUC) and the State Legislature have put into place measures designed to help customers make a more fully informed decision about installing solar on their single-family homes. These measures include a requirement that solar consumers review and sign a Solar Consumer Protection Guide that allows the consumer to know their rights and have enough information regarding the several factors they should consider when installing solar. This requirement does not apply to self-installation or new construction projects.
The Service Account holder should sign and initial the Consumer Protection Guide. If the name on the contract, consumer guide and interconnection agreement are not the same across all three documents, SCE will require an explanation of the relationship between the parties signing each document uploaded with the consumer guide.
Only pages with signature/initial sections are required. This includes pages 1-4 (customer initials) and pages 23-24 (customer/solar provider signatures).
Anyone authorized to sign on behalf of the solar provider qualifies as a company representative. Consult an attorney if you have any questions.
Electronic signatures are allowed. Please note that if e-signatures were used in the Consumer Protection Guide, your contractor must also submit an electronic signature audit document to verify the validity of the signatures. Such documents typically include the:
- Time stamps for each signature/initial
- Email addresses of the signing parties
- IP addresses of the signing parties
Any authorized signatory for such entities can sign the Consumer Protection Guide.
Acceptable file documents include: .docx, .xlsx, .csv, and .pdf files, whereas image files are not. While a clear picture of any of the required documents is acceptable for upload, the file containing the picture must be in .pdf format.
Energy Storage Devices / Battery Storage Frequently Asked Questions
Energy Storage Devices / Battery Storage FAQ
Yes. However, for systems that are less than 10 kW and do not have a Net Generation Output Meter (NGOM), NEM credits are capped in accordance with the NEM Paired Storage estimation methodology, as described in the NEM Successor Tariff.
For systems over 10 kW, a NGOM, or other power control option, will be required to meter the generation of the system and properly identify any energy exported to the grid specifically from the battery component. No credits are granted for exports that exceed the recorded generation from the renewable system.
There are currently no applicable restrictions related to the sizing for energy storage devices paired with renewable generators. The 150% rule originally outlined in the Net Energy Metering (NEM) tariff has been suspended through August 2025.
Please note that if you are participating in rebate programs such as the Self-Generation Incentive Program (SGIP), they may have different sizing requirements for the energy storage device. As such, you will need to confirm that the size of the energy storage device meets both the interconnection and rebate program requirements to qualify and take advantage of both programs.
If your project requires, or you request a NGOM, SCE will internally begin this process once your project moves to Engineering Review. Your contractor should keep you updated with the status of your NGOM as it moves through the installation process.
If your storage device is paired with a NEM eligible generator (e.g., solar, wind, etc.), an Interconnection Application will need to be submitted.
If your storage device is paired with a NEM eligible generator (e.g., solar, wind, etc.), an Interconnection Application will need to be submitted.
Please Note: If the energy storage device is not paired with a NEM generator, then the interconnection application must be submitted to the Grid Interconnection and Contract Development (GICD) team as a Rule 21 Non-Export project. For questions regarding the GICD application process, please send an email to InterconnectionQA@sce.com.
Battery systems in a NEM-Paired Storage (NEM-PS) agreement are charged by a renewable generator i.e., solar, wind, etc., but are not permitted to charge from the grid.
It depends on the size of your storage device.
If your storage device has an inverter rating greater than 10 kW, you must adhere to the metering requirements listed in the NEM-MT section of the NEM Tariff. Options to meet these requirements include:
- Installing a Non-Export Relay on the storage device(s).
- Installing a Net Generation Output Meter (NGOM) directly to the generating system.
- Installing a Certified Power Control System.
- You can opt-in to installing a NGOM or non-export relay (if it is technically feasible to do so) instead. In this case, the NEM-MT metering provisions, as described in the previous paragraph, will apply.
- Please note that NGOM pricing for most projects is capped at $600. However, more complex projects may be subject to higher costs. The cost will be evaluated at the technical and engineering review stage.
If your storage device has an inverter rating of 10 kW or less, no additional metering is required. Instead, SCE will use an estimation methodology to validate your eligible NEM credits. You can also opt-in to installing a NGOM or non-export relay (if it is technically feasible to do so) instead.
Projects with NGOM metering are not eligible for the estimation methodology, as described in the NEM Successor Tariff.
Yes, any new energy storage device added to a previously approved NEM generator will be eligible under their respective NEM program, if it meets all tariff requirements.
Billing/Net Surplus Energy Compensation (NSC) Frequently Asked Questions
Billing/Net Surplus Energy Compensation (NSC) FAQ
The Solar Billing Plan and the Net Energy Metering plan does not have a discharge requirement; however, please note that incentive programs, such as the Self-Generating Incentive Program (SGIP) may require battery discharge at regular intervals.
SGIP requires Energy Storage systems to discharge a minimum of 52 full discharges per year. A ‘full discharge’ is the equivalent of discharging the SGIP-incentivized energy capacity, whether it is during a single, or multiple discharges. SGIP does not dictate or control when the battery discharge occurs.
There are currently no applicable restrictions related to the sizing for energy storage devices paired with renewable generators. The 150% rule originally outlined in the Net Energy Metering (NEM) tariff has been suspended through August 2025.
Please note that if you are participating in rebate programs such as the Self-Generation Incentive Program (SGIP), they may have different sizing requirements for the energy storage device. As such, you will need to confirm that the size of the energy storage device meets both the interconnection and rebate program requirements to qualify and take advantage of both programs.
If your project requires, or you request a NGOM, SCE will internally begin this process once your project moves to Engineering Review. Your contractor should keep you updated with the status of your NGOM as it moves through the installation process.
Direct Access and Community Choice Aggregation Frequently Asked Questions
Direct Access and Community Choice Aggregation FAQ
DA and CCA customers are eligible to participate in NEM if the Energy Service Provider (ESP) or CCA agrees to support the NEM provisions of the NEM rate. The ESP or CCA must provide their agreement to support these provisions before your associated accounts can/will be placed on NEM. SCE will be responsible for delivery credits (if applicable), and your ESP or CCA will be responsible for any corresponding generation credits. DA and CCA customers are not eligible for Net Surplus Compensation from SCE.
If your ESP or CCA declines to support NEM, you have a few options:
- You may choose to remain with your service provider, continue service without the benefits of NEM, however you will still receive the usage reduction benefit from the system.
- You may choose to switch to a different ESP that offers NEM.
- You may choose to return to bundled service.
Where CCAs and ESPs have their own NEM programs, they still must go through our interconnection process and receive permission to operate their generating facility from SCE.
Note: SCE cannot speak for the ESP or CCA and cannot discuss the ESP’s or CCA’s reason(s) for declining to support NEM or NEM Aggregation. If you have any further questions, please contact your ESP or CCA.
Generation Meter Adapter Frequently Asked Questions
Generation Meter Adapter FAQ
GMAs offer certain NEM customers an alternative interconnection option to traditional supply-side connections (also called “line-side taps”). They eliminate the need to make modifications to your meter panel, which may help reduce the overall cost and time of your renewable generating facility installation. They provide a safer installation compared to the traditional line-side taps by eliminating the need to enter or modify the service panel. For more information, please refer to the GMA Fact Sheet.
This will be considered a line-side connection. Cities and AHJs may have various requirements regarding line-side connections, however, once the GMA is approved by SCE, most AHJs will accept the installation of SCE-owned equipment. Please ask your contractor to work with your city or AHJ to determine if the GMA is an approved method for interconnecting.
No, GMAs are not designed for use with paired-storage systems.
Any change to the point of interconnection requires a new application. Once your new application is submitted, as part of the interconnection process, SCE will email you and/or your contractor to schedule the removal of the GMA.
Yes, the GMA is SCE-owned and becomes part of the metering services. However, the neutral pigtail is the white wire included in the GMA. SCE makes the connections to the GMA, including the Neutral to the customer’s panel. If needed, the Contractor may assist with the Neutral.
If you have an existing GMA and the combined system size is less than 15.6 kW, you can still use your existing GMA. However, if the new combined system is greater than 15.6 kW, the GMA cannot be used, and the new array must be connected to the service panel through a load-side connection.
NEM Aggregation (NEM-A) Frequently Asked Questions
NEM Aggregation (NEM-A) FAQ
An arrangement includes all eligible benefiting accounts and the generating account served by the renewable generator. There is no limit to the number of Service Accounts that can be included in an arrangement.
A generating account is the account that is connected to the renewable generator. It may or may not have a load other than that of the generator.
A benefiting account is an eligible Service Account that is included and receives NEM energy credits as described in the NEM-A arrangement. Benefiting accounts may be of a different rate class and/or schedule but must have the same SCE customer name.
There is a one-time $16 set-up fee for every account in the NEM-A arrangement. Any account added to a NEM-A arrangement is subject to this one-time fee. There is also a $2.70 monthly billing fee per account.
You can change the accounts (either add or remove) included in an NEM-A arrangement once in a 12-month billing period.
The removal of an account from an NEM-A arrangement will trigger a settlement bill for that account only. The remaining accounts on the arrangement will continue on their existing 12-month billing period.
Adding an account does not trigger a new 12-month billing period.
Notification of any modification to the NEM-A arrangement must be provided to us via email at least 60 days before the change takes effect. The change will remain in effect for a minimum of 12 months. Documentation should be emailed to customer.generation@sce.com.
No, energy credits will not be carried over to the next 12-month billing period. Any excess generation credits will help offset your energy charges.
For the purposes of Form 14-937, parcels that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are within an unbroken chain of otherwise contiguous parcels and are all solely owned, leased, or rented by the Customer, as verified in Form 14-937
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If you submitted an NEM application prior to February 15, 2024 and you have multiple electric accounts on the same property as the renewable generator or property is contiguous or adjacent to that property, you can install a generator up to the aggregated load of all accounts, so long as all the properties are solely owned, leased, or rented by you. You must also be the customer of record on all SCE accounts and the accounts must have been established prior to December 15, 2022.
To learn more about NEM-A billing and the generation credit allocation methodology, please visit the NEM-A Bill Guide.
As with any other NEM 2.0 project, the generating account meter must be capable of measuring the excess generation exported to the grid in 15-minute intervals. Once your interconnection request is submitted, SCE will determine if the correct metering is in place for NEM. If needed, we will set up proper metering.
All accounts included in a NEM-A arrangement will be billed individually. Summary billing is not available for NEM-A accounts.
All NEM-A accounts will be billed monthly for both energy and non-energy charges.
If it is determined that distribution system upgrades are required to interconnect a NEM-A generator, the customer would be responsible for the cost if they are the only beneficiary of the required upgrade. For example, if the transformer only serves your property and accounts. If the transformer serves other customers, you would not be responsible for any distribution system upgrade costs.
To qualify, your renewable generating facility must be sized to not exceed the annual on-site usage of all the aggregated accounts.
All accounts in an NEM-A arrangement must be either (1) all Bundled Service Accounts; or (2) all Direct Access (DA) Service Accounts served by the same Energy Service Provider (ESP); or (3) all Community Choice Aggregation (CCA) Service Accounts served by the same CCA. You can have more than one NEM-A arrangement, but accounts may not be shared across multiple arrangements.
No. We will allocate kWh generation to all your accounts in the aggregation arrangement throughout the 12-month billing period to ensure energy credits are applied appropriately. However, there may be instances where energy credits are leftover and cannot be applied to other Service Accounts.
Yes, NEM-A billing is now available through MyAccount.
Customers who are currently interconnected under a standard NEM contract can change to a NEM-A contract provided you have multiple electric accounts on the same property as the renewable generator or property is contiguous or adjacent to that property, so long as all the properties are solely owned, leased, or rented by you. You must also be the customer of record on all SCE accounts and the accounts must have been established prior to December 15, 2022.
To initiate this request the customer must send the following documents to Customer.Generation@sce.com with the subject line of “NEM-A Program Change <Project Number>”:
- NEM-A Form 14-937
- Plot Plan
- A parcel map which clearly identifies the locations of the benefiting account meters
- Property Lease/Ownership Agreement(s) (if applicable)
Note: If you change your standard NEM contract to a NEM-A contract you will be permanently ineligible for Net Surplus Compensation, even if the account is reverted back to a standard NEM contract.
No, NEM-A customers are permanently ineligible for Net Surplus Compensation.