On April 15, 2023, NEM 2.0 closed to new customers and a new Solar Billing Plan went into effect. NEM accounts will continue to bill under the current NEM program until the 20-year period expires, or until the account loses eligibility to remain on the NEM program, whichever is earlier.
Net Energy Metering (NEM) is a rate option that allows customers with an eligible renewable generating system to receive a credit for the surplus electricity supplied to the electric grid. This credit is applied to their energy bill to offset all or part of the costs associated with the energy consumed each month.
For California clean energy stats, view the statewide data by utility.
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.
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.
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.
According to a TOU rate plan, the price of electricity varies by the time of day and with the season. When you can 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.
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. Learn more about TOU rates
*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.
Click here for information on Option E tariff eligibility requirements and available capacity limit.
On April 15, 2023, NEM 2.0 closed to new customers and the Solar Billing Plan went into effect.
The Solar Billing Plan has no immediate change or impact on existing NEM accounts. NEM accounts will continue to bill under the current NEM program until the 20-year eligibility1 period expires, or until the account loses eligibility to remain on the NEM program, whichever is earlier. When that occurs, the account will automatically move to the Solar Billing Plan or the successor rate plan available at the time of transition.
For more information, see the Solar Billing Plan.
IMPORTANT: Currently, the Solar Billing Plan does not apply to the Multifamily Affordable Solar Housing (MASH) or Solar on Multifamily Affordable Housing (SOMAH) programs.
1 The eligibility period is the minimum number of years that an account can remain on a program. The eligibility period begins on the account’s PTO date.
2 VNEM customers are allowed to change their benefiting account allocation percentage once
NEM 1.0 closed to new customers in 2017.
The Solar Billing Plan has no immediate change or impact on existing NEM accounts. NEM accounts will continue to bill under the current NEM program until the 20-year eligibility1 period expires, or until the account loses eligibility to remain on the NEM program, whichever is earlier. When that occurs, the account will automatically move to the Solar Billing Plan or the successor rate plan available at the time of transition. Allocation changes do not impact the eligibility period.2
1 The eligibility period is the minimum number of years that an account can remain on a program. The eligibility period begins on the account’s PTO date.
2 VNEM customers are allowed to change their benefiting account allocation percentage once.
Per the California Public Utilities Commission’s Decision (D).23-11-068, SCE will provide available performance data from projects enrolled in Schedule FC-NEM (Fuel Cell Net Energy Metering). No performance data is available for January 1, 2023, to December 31, 2023.
Accounts with Permission to Operate are typically set up for NEM billing within a few billing cycles and credit(s) for surplus energy supplied to the electric grid will appear on your first NEM bill. If you have experienced any delays that extend past these normal processing times, please contact SCE Customer Service at 866-701-7868 for NEM residential customers or 1-866-701-7869 for NEM business customers.
To learn more about NEM Billing please refer to our NEM FAQ and visit the Guide to Your NEM Bill.
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.
Looking for SCE Solar Application Processing Data? Find status updates for applications currently being reviewed.
Whether you want every detail or are seeking specific info, we've compiled frequently asked questions about NEM so you can find the answers you need easily and quickly.
If you are a Residential NEM customer that has been impacted by a major disaster, for which a state of emergency has been declared, and you decide to rebuild your NEM system, it may be possible for you to remain on your original NEM tariff and have application fees waived if you meet these requirements:
To notify us of your intent to rebuild your NEM system, please complete this Disaster Support Form.
If you have additional questions, please contact us at: nem@sce.com.
