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.