We have a special billing program for you if you have or are considering solar and other clean energy generation at home or business: the Net Energy Metering (NEM 2.0) program. Simply put, the energy you produce, minus the energy you consume, equals net energy. We’ll deduct the energy you export to the grid at times when generation exceeds on-site demand from your bill, and you may even earn surplus credits for the energy you produce. But remember, even with solar, you have to be connected to the grid for the times the sun isn’t shining.
Smart Inverters Requirements
On July 11, 2019 the CPUC approved Resolution E-5000.
Resolution E-5000 clarifies and mandates smart inverter Phase 2 Communication Requirements and Phase 3 Functions (1, 2, 3, 8) in addition to all previous smart inverter requirements. The effective date for these requirements has been extended by CPUC from January 22, 2020 to the new effective date of March 22, 2020. All new interconnection applications must apply with a smart inverter that is certified or otherwise compliant with the resolution process.
Resolution E-4920 requires smart inverters to be UL-1741 SA certified with reactive power priority (RPP). Effective July 25, 2018, all new interconnection applications must apply with a smart inverter that is programmed for RPP.
Resolution E-4898 requires smart inverters to be UL-1741 SA certified with capability to perform Phase 3 Advanced Functions 5 & 6. Effective February 22, 2019, all new interconnection applications must apply with a smart inverter that is programmed with Advanced Functions 5 & 6.
It is the responsibility of the customer/installer/contractor to ensure the equipment purchased meets both the smart inverter requirements adopted in E-5000, E-4920 and E-4898. We recommend verifying with the inverter manufacturer to ensure the inverter meets all Rule 21 requirements.
The Inverter Listing Request Procedure process and the list of eligible inverter equipment will be managed by the California Energy Commission. Effective October 1st 2019, SCE will verify eligible ceritied non-solar through the inverters CEC list. For more information, the CEC has a website dedicated to the Rule 21 Smart Inverter Working Group.
SCE will now have a new internal certification verification process for certified power control systems meeting the new UL-1741 CRD (Certification Requirement Decision) Standard. Please submit the NRTL documentation and request for internal verification of certification to Smartinvertertechnicalinformation@sce.com. The list of Certified Power Controls UL-1741 CRD has been updated and will be periodically refreshed to include smart inverters certified with the new standard.
Projects Above 1 MW
All standard Electric Rule 21 provisions including but not limited to the interconnection processes, $800 application fee, study agreements, queuing, timelines, cost responsibility, insurance and financial security, telemetry, etc. apply. You may learn more about interconnection for projects above 1 MW and access the online application system on our Electric Rule 21 section.
|NEM 1.0||NEM 2.0|
|Retail Rate Credit for Export||Yes||Yes|
|Grandfathering Period||20 Years||20 Years|
|Nonbypassable Charges (NBCs)||Based on the "netted out" quantity of energy consumed from the grid||Based on the "netted out" quantity of energy consumed in each metered interval**|
|1 MW-AC System Cap||Yes*, but the system must be sized to the customer's onsite load||No, but the system must be sized to the customer's onsite load|
$75 for systems 1 MW-AC or less
$800 for systems > 1MW
|Mandatory TOU Rate||No||Yes, certain exceptions apply***|
*Schedule NEM includes provisions for the California Department of Corrections and Rehabilitation (CDCR) and Armed Forces (including United States Army, Navy, Air Force, Marine Corps or Coast Guard) that allow these entities to exceed the 1 MW system cap.
**Calculation of NBCs for MASH-VNM, NEM-V and NEM-Agg is based on each kWh consumed from the grid or Channel 1 (imports only).
***The exception only applies to residential customers who do not have a TOU rate available to them (e.g., master-metered customers served on a DM/DMS rates)
Nonbypassable Charges - For the purposes of the NEM Successor tariff, the relevant NBCs are: Public Purpose Program Charge; Nuclear Decommissioning Charge; Competition Transition Charge; and Department of Water Resources bond charges.
Mandatory Time-of-Use (TOU) Rate Requirement for Residential Customers
As a requirement for participation in NEM successor tariff (â€œNEM 2.0â€) programs, residential customers must take service on a TOU rate.* You will be billed on Schedule TOU-D, Option A (TOU-D-A) unless you elect to switch to another TOU rate option for which you are eligible. For those who participate on or after March 1, 2019, you will be on Schedule TOU-D-4-9PM. Learn more information on the various TOU rate options available to you. If you would like to select a TOU rate other than the default TOU rate, please call us at 1-866-743-1645. Keep in mind that if you do switch to another TOU rate option that you are eligible for, you will not be able to switch your rate plans again for 12 months.
With a TOU rate plan, the price of electricity varies by time-of-day and with the season. When youâ€™re able to reduce your usage during on-peak hours (i.e., highest priced periods) or shift your usage to lower cost periods, you can potentially save money and better control your monthly electricity bill.View the time periods for each TOU rate options.
*There is one exception to the mandatory TOU requirement for residential customers who have no TOU rates available to them (e.g., master-metered customers served on a DM/DMS rates).
Note: The mandatory TOU requirement also applies to all non-residential customers served on NEM 2.0 programs, but non-residential customers have been required to be on mandatory TOU rates since at least 2015.