Frequently Asked Questions

1. 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.

2. If your application has all the correct information and required documents, your project will be eligible for NEM 2.0 until April 14, 2026. 

3. 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.

4. Once your project receives final approval, we will issue your Permission to Operate, which will authorize you to operate your solar generating system. 

5. 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.

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.

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.

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.

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. 

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.

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.   

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.
• 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.

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).

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.
 

If your project requires, or you request a NGOM, SCE will internally begin this process once your project gets to Engineering Review. Your contractor should keep you updated with the status of your NGOM as it moves through the installation process. 

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.

Only pages with signature/initial sections are required. This includes pages 1-4 (customer initials) and pages 23-24 (customer/solar provider signatures).

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.

NEM 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. 

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. 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.
 

If your project requires, or you request a NGOM, SCE will internally begin this process once your project gets to Engineering Review. Your contractor should keep you updated with the status of your NGOM as it moves through the installation process. 

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. 

Accounts with Permission to Operate are typically set up for NEM billing within a few billing cycles, however, we are experiencing delays in some instances where SCE is unable to reprogram or replace the existing meter. Your non-NEM bill will still track the amount of electricity used from the electric grid but will not reflect the surplus energy credit(s) supplied to the electric grid, until the issue is resolved. The credit(s) for the surplus energy you supply to the electric grid will appear on your first NEM bill. For billing inquiries, please contact SCE Customer Service at 1-866-701-7868 for NEM residential customers or 1-866-701-7869 for NEM business customers. To learn more about how to read your NEM bill statement, please visit on.sce.com/nembillcalc.

There are several reasons your settlement bill (the annual bill you receive at the end of your 12-month cycle for your net energy balance) may be higher than you expect. Most NEM customers are enrolled in the Annual Billing Option (ABO), which means you receive one settlement bill each year for energy you’ve consumed. Remember, your settlement bill is the bill for all your net energy charges for the year. If you consume more energy from the grid than your system produces over a year, charges can add up. 

This is especially true if you start using more energy after your system is installed; for example, if you buy an electric vehicle, or install a pool. If your solar generating system isn’t sized with these investments in mind, you’ll use more energy from the grid.  

Another reason you might have a higher bill depends on when you use energy. Since most NEM customers are billed through a Time-of-Use (TOU) rate, energy prices vary by time of day and season. If you can shift energy use to off-peak daytime hours (8 a.m. – 4 p.m.) when your system is active, it can help you use less grid energy overall, and at the most affordable price during the day.  

You can view your usage history by logging in to My Account. You’ll be able to see both the energy you’ve consumed from the grid, as well as the excess energy you’ve generated. Reviewing your usage history can help identify when to shift your energy use, which can have an impact on your bill. Get Energy Tips.

You can switch to the Monthly Billing Option (MBO) to pay your new energy charges monthly instead of annually. If you’d like to opt into MBO, you can do so by logging in and submitting this form. It will take 60 days after your change request is processed for monthly billing to begin.

Some contractors may offer or provide their customers with a monitoring system. Monitoring services typically measure the total energy generated directly by the renewable system. SCE service meters do not track all the energy your renewable system generates, only the surplus energy that flows out of your home or business and back to the electric grid. SCE cannot track or advise how much overall energy your system produces.

The best way to maximize your solar generating system is to understand two things: how your system functions and how your rate plan works. 

How your solar system functions: Solar generating systems capture sunlight and convert it into electricity that powers your home. For your system to work the best it can, it needs to be installed correctly, and maintained professionally. Here are a few things to keep in mind for installation and care: 

• Placement: Your system functions best when it has direct access to sunlight throughout the day. Your contractor should determine the optimal placement for your panels to capture direct sunlight during daytime hours.
• Sizing: Make sure you’re installing a large enough system to produce the energy you need. Your contractor can help decide what size system you need to be installed.
• Cleaning: Having your panels periodically cleaned and serviced by a licensed professional will help keep them operating at full capacity.

How your rate plan works: NEM 2.0 customers are placed on a Time-of-Use (TOU) rate plan. A TOU plan prices energy more affordably during off-peak hours, which include the daytime hours of 8 a.m. – 4 p.m., when your panels will be capturing sunlight. Shifting energy use to these hours, instead of times when your system isn’t producing energy (such as at night or when it’s cloudy), will help you use more solar energy, and less grid energy overall, at the most affordable price during the day. Here are a few tips for shifting energy to make the most of your system:

• Shift major appliances and equipment use to off-peak daytime hours (8 a.m. - 4 p.m.) when your solar generating system is active.
• Try not to use too many appliances simultaneously during the day, so your system can keep up.
• Run your pool pump during the daytime.
• Consider investing in a battery storage system to keep more of your self-generated energy for use at night when electricity costs can be higher.

You can always view your usage history by logging into My Account online. You’ll be able to see when your system is generating more than you’re using (excess electricity that is exported to the grid) and when you’re consuming energy from the grid. This can help you find opportunities to shift your usage going forward.

For billing inquiries please contact SCE Customer Service at 1-866-701-7868 for NEM residential customers or 1-866-701-7869 for NEM business customers. 

Net surplus generation (or energy) occurs when your NEM renewable energy system sends more energy to SCE’s electric grid than you have used during your 12-month billing period. 

A twelve-month period, or portion thereof, starting on the day a Permission to Operate (PTO) is issued, and every anniversary thereafter. 

For Customers electing to receive service under NEM for a home or facility that has a system already in operation, the 12-month billing period will commence on the date that the customer begins receiving service under NEM and on every subsequent anniversary thereof. 

If a customer terminates service or experiences a change from SCE Bundled Service to CCA/CA Service or DA Service or from CCA/CA Service or DA Service to SCE Bundled Service, the 12-month period will end on the date when the change of service is effective.  

On your annual 12-month settlement bill, SCE will calculate the Total Energy Amount as the difference between the energy consumed from the grid during the relevant 12-month period and the energy exported to the grid during the same period.

If the Total Energy Amount is negative, you have supplied surplus electricity and you are eligible for Net Surplus Compensation. 

If the Total Energy amount is positive, you have used more electricity than you supplied throughout your 12-month billing period, and therefore you are not eligible to receive Net Surplus Compensation. 
 

Net Surplus Compensation (NSC) is equal to the Net Surplus Compensation Rate (NSCR) multiplied by your Net Surplus Energy kilowatt-hours (kWh). The NSC rate is based on current market prices and varies by month. Details on the NSCR rates can be found here. 

The credit amount indicated on your bill is calculated using the full retail rate for energy used on-site. This rate includes generation, transmission, distribution, and funding for public programs. Under NSC, SCE pays you the market rate, comparable to what we pay other energy producers, as required by California Assembly Bill 920.

Not necessarily. Payment is issued only if the customer has net surplus electricity (you have supplied more energy in kilowatt-hours (kWh) to the grid than you have used over the 12-month billing period). It is rare for a customer to have monetary credit remaining at the end of a full 12-month bill period and not have net surplus electricity. However, this scenario can occur with customers who supply energy to the grid during peak periods when electricity is more expensive and use energy from the grid during off-peak periods when electricity costs less. 

Before or at the end of your 12-month settlement bill, if you are on the Annual Billing Option (ABO) and have supplied more electricity than you have used, you may be compensated with an on-bill credit or a check for the NSC paid at the market rate. 

The Monthly Billing Option (MBO) includes a settlement of monthly energy charges and credits (in $s) over the entire 12-month billing period. This means that any dollar-value energy credits remaining at the end of the 12-month billing period are used to offset energy charges billed to the customer in an earlier month in the 12-month billing period. This eliminates the need for a customer to adjust the start date of their 12-month billing period to maximize the use of the monetary credits received over the 12-month billing period. Any remaining surplus energy may be compensated with an on-bill credit or a check for the NSC paid at the market rate. 

For either Annual or Monthly Billing Options, once the NSC is calculated and issued to the account holder, the balance will be zeroed out and the new 12-month billing period will begin on the next regularly scheduled meter read date.
 

You may elect to change the start date of your 12-month billing period once only for the lifetime of the account, by completing and returning a NEM One-Time Relevant Period Change Request Form (14-936).

You will be responsible for selecting the date of the requested change. We must receive this form at least 60 days before the requested start date of the new 12-month billing period. When the start date is changed, your existing 12-month billing period will end, generating your settlement bill, and your new 12-month billing period will begin. Under no circumstances will a 12-month billing period extend beyond 12 months.
 

Yes. The following customers are ineligible for Net Surplus Compensation:

• Direct Access (DA) customers
• Community Choice Aggregation (CCA) customers
• Bio-Gas (BG-NEM) and Fuel Cell (FC-NEM) customers
• Customers on a NEM-Aggregation arrangement 
   

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.

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.

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. 

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. 
 

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. 

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.

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. 
 

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. 

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.

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.