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Get a Read On Net Energy Metering

If you purchase electricity from SCE, install a renewable energy system to be eligible for our Net Energy Metering (NEM) rate option. With NEM, you can zero out your bills by receiving a credit for any surplus energy you generate beyond what you consume.

Learn More

NEM Forms & Documents

How NEM Works

Simply put, if your small renewable energy system produces more Kilowatt-hours energy than you use, the NEM option allows you to receive a credit for the surplus electricity you send back to the electric grid. It’s just one more way you benefit from using renewable energy.

NEM Programs

To be eligible for NEM, your system must be sized to your historic electric use and cannot exceed 1,000 kilowatts. SCE offers several NEM programs:

Standard NEM Fuel Cell NEM Virtual Net Metering (VNM)

For SCE customers who install renewable energy system using:

  • Solar Photovoltaic
  • Wind
  • Fuel Cell1
  • Biogas
  • Biomass
  • Digester Gas
  • Geothermal
  • Hydroelectric up to 30 MW2
  • Landfill Gas
  • Municipal Solid Waste Conversion3
  • Ocean Thermal
  • Ocean Wave
  • Solar Thermal
  • Tidal Current

For SCE customers on a Time-of-Use (TOU) rate who:

  • Install a system using technology that the CPUC has determined will achieve reductions in emissions of greenhouse gases pursuant to subdivision (b) of PU Code § 2827.10, and
  • Meets the emission requirements for eligibility for funding set forth in subdivision (c) of PU Code Section 379.6, and
  • Commence operation on or before January 1, 2015.
Under Virtual Net Metering, the owner or operator of a multi-tenant property designates the percentage of the total metered output of the generator or generators, to be allocated to each tenant service account known as ‘Benefiting Accounts’.

1 To qualify for standard NEM, a fuel cell system must be powered solely with renewable fuel. 
2 A “small hydroelectric” generating facility is not an eligible renewable generating facility if it will cause an adverse impact on in stream beneficial uses or cause a change in the volume or timing of stream flow.
3 Qualifying “solid waste conversion” is defined pursuant to Public Resources Code Section 25741(b)(3).

Additional Information

Have Questions about your NEM application? See FAQs

NEM Documents & More

Getting Started

System installers typically prepare and submit NEM applications on your behalf because technical documentation of the system is required. You will need to sign an NEM Interconnection Agreement. For a list of required NEM application documents

Free Classes

SCE offers FREE Commercial Solar Workshops and Solar Connection Events as part of the California Solar Initiative (CSI) program.
For a schedule and to pre-register
For a list of installers in your area

Additional Information

Have Questions about your NEM application? See FAQs

Billing & Credits

Standard NEM
When your small renewable energy system generates a surplus of energy, the surplus will be credited to your account at the same rate you would have been charged had you purchased the electricity from SCE. If after a 12 month billing period you have net surplus energy, you can apply your overall credit toward future energy charges, or receive a check for the amount due. Under this rate option, domestic accounts are billed once a year for “net” energy consumed or generated over the previous 12 months, if any.
Read the NEM Rate Schedule

Fuel Cell NEM
You receive credit based on the applicable energy rate of your time-of-use schedule.
Read the FC-NEM Rate Schedule

Virtual Net Metering (VNM)
You receive credit at the same rate you would have been charged had you purchased the electricity from SCE. 
Learn More about Virtual Net Metering

Questions about your NEM bill? Download our NEM Fact Sheet (PDF).

Direct Access Customers

As of June 23, 2013, Direct Access (DA) customers are eligible to request and receive service on our Net Energy Metering (NEM) rate schedule.

Prior to June 23, 2013, DA customers were only eligible to receive monthly Generation credits from their ESP, if offered. Now, DA customers are also eligible to receive monthly Delivery Service energy credits, when applicable, from us. However, DA customers remain ineligible to receive net surplus compensation (NSC) from us at the end of their NEM Relevant Period.

In order for a DA customer to be served on our NEM tariff and receive Delivery Service credits from us, their ESP must also offer an NEM rate - which will be verified by our Customer Choice Services (CCS) organization.

DA Service Accounts with NEM Interconnection Agreements approved after June 23, 2013 will be placed on Schedule NEM effective with the date that Permission to Operate is issued and/or metering upgrades are completed.

DA Service Accounts that installed NEM-eligible generating facilities prior to June 23, 2013 must submit a rate change request to be placed on our NEM tariff. After ESP approvals and/or metering upgrades are completed, our NEM tariff will be established on a going forward basis from the approval date of the rate change request. Any applicable Delivery Service credits will be calculated and applied by us on our monthly billing statement. Similarly, any applicable Generation credits will be calculated and applied by the ESP on their monthly billing statement.

For additional information, please call us at 1-800-799-4723.

Metering & Rates

For NEM customers, SCE provides a meter capable of measuring energy flow in two directions, known as a bi-directional meter. SCE will reprogram (Smart meters can be programmed to be bi-directional) or swap your meter as needed at no charge within 30 working days of receiving a complete NEM application, or apply a credit based on estimated generation during any delay.

Net Energy Metering Cap Data

Net Energy Metering Cap Data

Legislation that went into effect Jan. 1, 2011, increased the cap on the total generating capacity of net metered systems in SCE's service territory to 5 percent of SCE's peak load requirements.

The table below shows the latest number of NEM customers in SCE's service territory and the combined capacity of their generating systems. These amounts are only estimates and do not replace SCE's CPUC-reporting requirements.

Net Energy Metering Cap Data
Date Aggregate Customer Peak Demand (MW) NEM Installations Generating Capacity (MW) Progress Toward 5% Cap
03/31/2014 44,807 703.9 1.57%


Option R Tariff

Option R Tariff

Overall capacity for the Option R Tariff is 150 megawatts (MW). As of October 12, 2013, the Option R cumulative 150 MW cap is fully subscribed and closed. This means that no new service accounts can go on Option R, and any service accounts currently on Option R cannot increase the generation system size above what was previously approved.   If the generation system size is increased, the account will be removed from Option R since it will no longer be eligible.

Option R Tariff
Approved to Transition to Option R Tariff (MW) Available Megawatts
150.00 0
TOU-8 Special Solar Allowance

TOU-8 Special Solar Allowance

  • Established for TOU-8 Option A and is limited to customers who install solar generation and who would otherwise qualify for TOU-8 Option R.
  • A cap of 50 MW is set for the otherwise qualifying TOU-8 Option R customers to be served under TOU-8 Option A.
  • Option A has no time-related demand charges and has a full facilities-related demand charge.


We do not issue TOU-8 Option A tariff reservations prior to granting customers Permission to Operate (PTO). After customers receive PTO from SCE, they can apply for the TOU-8 Option A tariff by submitting a Rate Change request form.

Additional Information

To qualify for TOU-8 Option A tariff (Solar Allowance), the account must meet the following eligibility criteria:

  • Demand greater than 500 kW but not exceeding 4 MW
  • Account qualifies for TOU-8 rate
  • Account has 12-months of active history
  • For customers without 12 months of demand data, SCE will determine the annual peak demand once the customer has three months of demand data
  • On site eligible renewable generator installed with net capacities 15% or greater than the customer’s annual peak demand recorded over the previous 12 months
  • Generation system expansions/increases cannot exceed the cumulative 50 MW cap.  Account will be removed from Option A if the generation system increases above the previously approved generation system size after the 50 MW cap has been reached and closed.
  • No other non-renewable generator is on site
  • Permission to Operate (PTO) letter issued
  • Rate change requested.  Eligible applicants will be given 15 calendar days from the date SCE approves their eligibility to sign up for the Option A tariff by submitting a Rate Change Request form

TOU-8 Option A Tariff
Approved to Transition to Option A Tariff (MW) Available Megawatts
0 50