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Net Energy Metering

NEM Customers At A Glance Report

Announcement: SCE is #1 in new solar megawatts installed in 2016. Smart Electric Power Alliance, a non-profit, publishes its solar rankings every year.

To see stats on how much clean energy we’re installing, view our monthly NEM Customers At A Glance report.

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NEM Customers at a Glance

Cumulative NEM 1.0 Installations
(Projects approved for NEM interconnection)
232,418 1,962.64
Cumulative NEM 2.0 Installations
(Projects approved for NEM interconnection)
23,394 188.94
Cumulative NEM 1.0 + 2.0 Installations
(Projects approved for NEM interconnection)
255,812 2,151.58
Total NEM Applications in Queue as of January 2018
(Total pending requests for NEM interconnection)
3,719 365.64

¹As of 1/31/2018


Interested in Solar or other Clean Energy?

We have a special billing program for you if you have or are considering solar and other clean energy generation at home: the Net Energy Metering (NEM 2.0) program. Simply put, the energy you produce, minus the energy you consume, equals net energy. We’ll deduct the energy you export to the grid at times when generation exceeds on-site demand from your bill, and you may even earn surplus credits for the energy your home produces. But remember, even with solar, you have to be connected to the grid for the times the sun isn’t shining.


NEM 2.0 Program

As of July 1, 2017, we have transitioned to the NEM 2.0 program. Most of the program details haven’t changed, but there are a few key differences to the program requirements and application fees you’ll want to get familiar with if you plan on participating in NEM 2.0. One requirement customers should be aware of is you must take service on a Time-of-Use rate.

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Smart Inverters Mandated

The California Public Utilities Commission issued Decision 14-12-035 on December 22, 2014 mandating the use of smart inverters for all interconnection applications.  As such, a smart inverter is required for all interconnection application submitted after September 8, 2017.  The list of eligible equipment on the Go Solar California website has been updated to include smart inverters.  Additionally, the NEM 2.0 Online Application System only includes smart inverter technology approved by the California Energy Commission (CEC).  For more information, the CEC has a website dedicated to the Rule 21 Smart Inverter Working Group.

Projects Above 1 MW

All standard Electric Rule 21 provisions including but not limited to the interconnection processes, $800 application fee, study agreements, queuing, timelines, cost responsibility, insurance and financial security, telemetry, etc. apply. You may learn more about interconnection for projects above 1 MW and access the online application system on our Electric Rule 21 section.

  NEM 1.0 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***


*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 a 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 NEM successor tariff (“NEM 2.0”) programs, residential customers must take service on a TOU rate.* You will be billed on Schedule TOU-D, Option A (TOU-D-A) unless you elect to switch to another TOU rate option for which you are eligible. Learn more information on the various TOU rate options available to you. If you would like to select a TOU rate other than TOU-D-A, please call us at 1-866-743-1645. Keep in mind that if you do switch to another TOU rate option that you are eligible for, you will not be able to switch your rate plans again for 12 months.

With a TOU rate plan, the price of electricity varies by time-of-day and with the season. When you’re 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. View the time periods for each TOU rate options.

*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 a 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.


Get Started

Get Started

We can help you understand the application process, various program requirements and provide assistance on reading your bill.

Select and Install

Select & Install

There are several things to consider once you make the decision to install your own renewable generator. Learn which application process and program is right for you.

Submit Documents

Submit Documents

Most contractors will apply on your behalf, but we've provided all the forms you'll need to submit to get interconnected and enrolled in NEM.

Permission to Operate

Permission to Operate

Once you complete and submit all the necessary documents to enroll in NEM, we'll email you a Permission to Operate (PTO) notification, usually within 2-3 business days.

Understand Your Bill

Understanding Your Bill

Learn how your NEM bill differs from your previous one, from types of charges, to how your credits affect your balance, to your annual "true-up" bill (12 month statement bill).

Frequently Asked Questions

Frequently Asked Questions

Whether you want every detail or are seeking specific info, we've compiled common questions about NEM so you can find the answers you need easily and quickly.


Option R Tariff 1.0 and 2.0


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