Smart Inverter 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 the CPUC from January 22, 2020, to the new effective date of June 22, 2020. All new interconnection applications must apply with a smart inverter that is certified or otherwise compliant with the resolution process.
On April 26, 2018, the CPUC approved Resolution E-4920 and Resolution E-4898.
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 the 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 California Energy Commission (CEC) manages the list of eligible inverter equipment and facilitates the request to add eligible inverters to the list. For more information, visit the CEC dedicated Rule 21 Smart Inverter Working Group website.
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 projects larger than 1 MW are processed according to Electric Rule 21 provisions. This includes, but is not limited to the $800 application fee, study agreements, queuing, timelines, cost responsibility, telemetry, insurance, and financial security.
Comparison Between NEM 1.0 and 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 |
| Interconnection Fee |
Waived |
Yes,
$75 for systems 1 MW-AC or less
$800 for systems > 1MW |
| Mandatory TOU Rate |
No |
Yes, certain exceptions apply*** |
| 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 |
| Interconnection Fee |
| Waived |
Yes,
$75 for systems 1 MW-AC or less
$800 for systems > 1MW |
| Mandatory TOU Rate |
| No |
| Yes, certain exceptions apply*** |
Note:
*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 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 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-4-9PM 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.
