Net energy metering (NEM) is a program that helps people with solar panels get the most value from the electricity they produce.
During sunny hours, solar panels often generate more electricity than a home needs. Instead of letting that extra power go unused, it flows back into the electric grid, and the customer earns credits on their bill. These credits work like a savings balance. Later, when the home needs electricity, such as at night or on cloudy days, those saved credits help reduce the cost of the energy pulled from the grid. At the end of the billing period, customers pay only for the electricity not covered by their credits. It’s a simple way to make solar more affordable and support clean energy in our communities.
Monthly generation credits and charges: SCP charges you for electricity generation each month to make payments easier and track how well your solar system is working. If your solar panels make more energy than you use, you’ll get credit for the extra energy, which goes toward future bills. If you don’t have enough credits, you’ll pay for the electricity you used that month. Remember, PG&E applies a monthly connection charge of about $10 (expected to rise to $24 in March 2026), with delivery and transmission charges billed once a year.
Annual cash out: Each spring, if you’ve sent extra energy to the grid, you’ll be paid at the Net Surplus Compensation rate, up to $5,000 per year. If the amount is over $200, you’ll receive a check; if it’s $200 or less, it will appear as a credit on your electric bill.
Monthly vs. annual billing cycles: Your electric generation is billed monthly, so you won’t face a large true-up bill for generation at the end of the year. However, it’s important to note that PG&E’s delivery and transmission charges are billed annually.
