What is Net Energy Metering?
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Net Energy Metering (NEM) is a rate option that allows customers with an eligible renewable generating system to receive a credit for the surplus electricity supplied to the electric grid. This credit is applied to their energy bill to offset all or part of the costs associated with the energy consumed each month.
Net Energy Metering (NEM) Program Requirements
- Application fees (one time):
- $94 for projects < 1 MW
- $800 for projects > 1 MW
- NEM customers are required to take service on a Time-of-Use rate. Please see the Mandatory Time-of-Use (TOU) Rate Requirement for Residential Customers expansion below for more information.
- The generating system must be sized to the customer’s onsite usage.
- Grandfathering for the current NEM tariff (NEM 2.0) is extended to customers for 20 years. In the event of a new NEM tariff, NEM 2.0 customers are grandfathered to their tariff for 20 years from their PTO date. The 20-year NEM tariff grandfathering does not include grandfathering for your Time-of-Use rate.
- To participate in NEM 2.0, customers must have a compatible meter. SMART meters are compatible. For opt-out customers, other options may be available by region.
Mandatory Time-of-Use (TOU) Rate Requirement for Residential Customers
As a requirement for participation in the NEM successor tariff (NEM 2.0) programs, residential customers must take service on a TOU rate.* You will be billed on Schedule TOU-D-4-9 PM unless you elect to switch to another TOU rate option for which you are eligible.
With a TOU rate plan, the price of electricity varies by the time of day and with the season. When you are 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.
Learn more about 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 SCE at 1-866-743-1645. Keep in mind that you are limited to one rate switch every 12 months.
*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 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.
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