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. 

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. 
 

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.  

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. 

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. 

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.

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.

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.

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.

Your energy charges are the same whether you are an Annual Billing Option (ABO) customer or a Monthly Billing Option (MBO) customer. The difference between the two billing options is when you pay your energy charges.

• Annual Billing Option (ABO): With ABO, you are responsible for set fees each month, but you pay your net energy charges just once a year, at the end of your 12-month cycle.
• Monthly Billing Option (MBO): With MBO, you pay both your set fees and net energy charges in full every month, instead of a lump sum at the end of the year.

Both billing options have advantages: The ABO option offers you the simplicity of a single payment that calculates your total net energy for the year; the MBO option may benefit customers who want to avoid a potentially large balance due all at once. This can happen if your energy exceeds your solar generation, causing charges to build up over a year. You can always log in to My Account online to track your usage to see when you’re consuming energy from the grid. This can help you plan for a large end-of-year balance or decide whether to switch to MBO and “pay as you go.” 

If you are an ABO customer and would prefer to pay your energy charges monthly in more manageable payments, you can opt-in to MBO by logging in and submitting this form. It will take 60 days after your change request is processed for monthly billing to begin.