PG&E’s Net Energy Metering (NEM) is Wonderfully Simple

[Originally posted September 1, 2015]

PG&E’s accounting methodology for solar homeowners (aka, Net Energy Metering) is wonderfully simple. It’s the bill credit mechanism that makes solar lucrative for Yolo County homeowners. Unfortunately, many solar homeowners we speak with are caught off guard when they receive their annual “true up” bill from PG&E. In all of these cases, the homeowners have leased their solar system from a national company and said that the company's salesperson did not explain the process.

To wit, when you have solar, here’s how it works:

1. You are enrolled in PG&E’s Net Energy Metering program, and you have a 20-year contract with PG&E whereby they are required to credit you for the solar electricity you generate.

2. When you generate electricity, you are credited at the full retail price (per kilowatt hour), the same rate you pay when you use electricity.

3. As a solar homeowner, you only pay your PG&E electricity bill once a year. Every month, PG&E sends you a Net Energy Metering statement, quantifying and valuing your net electricity use. Some months, you are a net generator (you make more electricity than you use) and PG&E owes you money; conversely, there are months where you use more electricity than you generate and you owe PG&E money.

4. At the end of your 12-month solar year with PG&E, you receive an annual true-up, reconciling each month’s net electricity use. Thereby, if you were a net user, you pay PG&E; if you were a net generator, PG&E pays you.

It’s that simple. Please feel free to contact us — whether you already have solar or are considering it — if you have any questions.