Guide to Your NEM Bill

Guide to Your NEM Bill

How to Read and Understand Your Statements

Welcome to Net Energy Metering (NEM)! Now that you’re interconnected, you’ll get a new kind of bill. Use this guide to learn about NEM billing, how to read your statements, and ways you can use the information on your bill to make the most of your new solar generating system.

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Why Do I Still Get a Monthly Bill?

As a residential or small-business NEM customer, you still receive a monthly bill to track your “net energy charges.” These are any charges you owe for energy you consume from SCE, after we subtract any credit for surplus energy your system generates.  

You’ll also see some set fees appear on your bill, which will appear as “Delivery” or “Nonbypassable” charges. These fees apply to all SCE customers to support maintenance, operations, and public programs, and are due monthly regardless of your energy use.

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for surplus energy your system generates.

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for the energy you consume that comes from SCE.

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Set Fees

for basic services and programs.

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NEM Billing Options

When you become an NEM customer, you have two options for how to be billed:

1. Annual Billing Option (ABO):   
Residential and small-commercial NEM customers are typically enrolled in ABO by default. With ABO, you are responsible for set fees each month, but you pay all your net energy charges just once a year, at the end of your 12-month cycle. 

2. Monthly Billing Option (MBO):
With MBO, you pay your set fees and net energy charges in full every month, instead of a lump sum at the end of the year. You may have selected this option during your NEM application process, or you can opt-in to MBO by logging in and submitting this form.

Annual Settlement Statement:
At the end of each 12-month billing cycle, regardless of your Billing Option, your remaining net energy charges are due. If you have a credit balance, you may be eligible for a payout, calculated at the Net Surplus Compensation (NSC) rate. Your net energy balance will reset to zero at the start of each 12-month billing cycle.

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What’s on Your Monthly Bill

Your bill contains everything you need to know about your energy use for the month:

  • Amount Due: What you owe now
  • Year-to-Date Charges: Annual total as of bill date (due later)
  • Detailed Energy Charges: A list and total of individual charges and credits
  • Detailed Energy Use: Your current use and history

View Full NEM 1.0 Bill Breakdown

View Full NEM 2.0 Bill Breakdown

View SOMAH-VNM Bill Breakdown

You can also take our quick video tour of your new bill: Watch the Video

Want to just see what you owe at a glance? Your balance due as well as your year-to-date total are listed on the first page of your bill:



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Credits, Charges & Annual Settlement

Sometimes your solar generating system produces more energy than you need. When this happens, SCE buys your surplus energy, and you get credit for it.

Similarly, when your solar generating system is producing less energy than you need – for example, at night, or when it’s cloudy – SCE will provide energy and you’ll be charged for it.

Your net energy is the difference between the energy you produce and the energy you consume:

Energy You Produce – Energy You Consume = Net Energy

At the end of the year, you receive your annual settlement statement:

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If you consumed more energy than you produced during the year, you’ll have an end-of-year balance due and owe that balance in full.

If you end the year with a negative balance (unused credit), and you opted-in to Net Surplus Compensation (NSC), it will be paid out as a bill credit or by check at the NSC rate.

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Frequently Asked Questions

Looking for more specifics? Find answers to some common questions about net energy metering and billing below:

Net Energy Metering (NEM) tracks your net energy use once you’re interconnected with the SCE grid. Your bill calculates the difference between surplus energy from your system and the energy you consume to determine whether you owe a balance or have credit each month.

Your solar generating system can’t produce energy 24/7. When your system isn’t generating enough electricity – such as at night or when it’s overcast – SCE provides energy to keep your power on. When your system provides more energy than you need, that surplus is transferred back to SCE, and you get credited for that energy.

NEM billing tracks usage in 12-month cycles, and any surplus credit you earn throughout that cycle will roll over from month to month to offset energy consumption charges. At the end of the annual cycle, you’ll receive a settlement statement, where you’ll pay your balance (if any) or be paid out through Net Surplus Compensation (NSC), if applicable.

In addition to whatever balance or credit you have each month, your bill includes basic “Delivery” or “Nonbypassable” charges. These are charges all SCE customers pay every month to cover maintenance and operation costs, and public programs.

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There are several ways you can minimize the electricity you receive from SCE to supplement your solar generating system. The best thing you can do is be mindful of the time of day and weather – your system won’t be generating when it’s dark out, and it will produce less when there’s cloud cover. Even small changes can make a difference to your bill. We’ve listed a few recommendations below to help you make the most of your solar-produced power:

  • Shift major appliance and equipment use to off-peak daytime hours (8 a.m. - 2 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.
  • Periodically have your solar panels professionally cleaned.
  • 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.

Remember that if you make changes or investments like buying electric vehicles or installing a pool, your energy consumption will increase. If your system was not sized with these investments in mind, you’ll either need to upgrade your solar generating system or use more energy from SCE.

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We offer options to eligible customers who are unable to pay their annual settlement statement in full. Payment plans, bill support and financial assistance programs are available to those who qualify. Learn More >

You can also consider changing your billing to the Monthly Billing Option (MBO). With MBO, you pay your net energy charges every month, instead of in one lump sum at the end of the year, so you’ll level out your payments and avoid a potentially high settlement statement. You can opt in to MBO by logging-in and submitting this form.

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NEM customers are still eligible to participate through Community Choice Aggregation (CCA). Since your NEM service will be provided by the CCA, your generation credits and charges will be administered through that CCA as well. While you will receive a bill from SCE that incorporates those charges and credits as well as set fees, we recommend you contact your CCA for additional information on how your generation credits and charges are administered.

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A NEM Interconnection Agreement was completed when your solar generating system was added to your property and interconnected to our electric grid. For your reference, standard NEM Interconnection Agreements and NEM Rate Schedules can be found here.

Note: NEM Rate Schedules are subject to change per the California Public Utilities Commission (CPUC).

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