Net Energy Metering (NEM) for Solar Customers

If you have solar panels receive credits for the excess energy you generate and send to the grid.

If you have solar panels receive credits for the excess energy you generate and send to the grid.

What You’ll Get

  • Credit Accrual and Premium Payment Rates — If you generate more electricity than you use during a month, you will receive a credit for excess generation at full retail rates that will be automatically applied toward future electricity usage. At the end of the annual NEM cycle (April to April), net exports will be cashed out at the Net Surplus Compensation (NSC) rate plus $0.02 per kWh, up to a $5,000 annual limit.
  • Cash Out Annually — Cash-out payments will be automatically processed annually. For payment amounts greater than $200, you will receive a check. Payments of $200 or less will appear on your monthly statement as a bill credit.
  • No Large Annual Payment — MCE credits and charges NEM customers monthly, so you won’t end up with a year’s worth of generation charges at your true-up.
MCE’s NEM Program PG&E’s NEM Program
NEM credit accrual Credits accrue at retail rates and are applied toward your monthly bills during the year; any remaining retail credits are zeroed out at cash-out. Credits accrue at retail rates and are applied toward your true-up bill annually; any remaining retail credits are zeroed out at true-up.
Annual surplus generation Paid out at the NSC rate plus $0.02 per kWh (up to $5,000) at MCE’s annual cash out each spring. Paid out at the NSC rate at true-up.
Billing Occurs monthly; retail credits for excess generation are applied toward your balance as they accumulate. Occurs annually (except for minimum delivery charges); all retail credits are applied toward any outstanding balance at true-up.
Renewable energy service from the grid 60% or 100% renewable energy service when you use energy from the grid. 38% renewable energy service when you use energy from the grid.

How It Works

Your meter tracks the electricity imported from the grid, along with solar production exported, for each monthly billing cycle. If the cost of your net exports exceeds your net usage costs for that month, you receive a credit at full retail value, which will be applied to future usage costs within the same 12-month period (April to April).

At the end of the annual cash-out period, if you’ve produced more electricity than you’ve used, you’ll be eligible for a payment based on your surplus electricity, at the NSC rate plus $0.02 per kWh. Cash-outs over $200 will automatically be issued checks to the mailing address they have on record (subject to a maximum of $5,000 per account). Cash-outs of $200 or less will appear as a bill credit on the April PG&E statement.

NEM Bill Sample

Page 1 of Net Energy Metering Sample Bill

1  Account Number
Your PG&E-assigned number identifies your account. Please have the first 10 digits on hand if you call to make changes to your account.

2  Current PG&E Electric Monthly Charges
PG&E’s Minimum Delivery Charge for Net Energy Metering customers, set by the California Public Utilities Commission. This charge may be deducted at your annual PG&E Delivery True-Up if your Total NEM Charges Before Taxes are greater than your Total Electric Minimum Delivery Charges.

3  MCE Electric Generation Charges
MCE’s charge for the generation of electricity after accounting for your solar panels’ monthly generation. It includes the cost of electricity to match your home or business energy needs outside of your panels’ production. This fee replaces a fee that PG&E would have collected had they provided your generation service. This is not an additional charge.

4  Your Net Energy Metering Account Summary
This is your most updated year-to-date PG&E Charges for Electric Delivery after accounting for your solar panels’ productivity. It is what you are expected to owe PG&E at your annual true-up.

How to Enroll

Current NEM Customers

If you’re already in PG&E’s NEM program and your community is enrolling in MCE, you will automatically be enrolled in MCE’s NEM program – no action is necessary. Your account will be enrolled with MCE following your next PG&E true-up, unless you take action to opt out of MCE’s electric generation service in order to remain with PG&E’s.

Solar Billing Plan Customers

MCE customers sign up for solar billing through PG&E and will be automatically served by MCE’s Solar Billing Plan (SBP).  If you don’t currently have an installed electric generation system, we recommend you first contact an installer or professional who can guide you through installing a system and submitting an application to PG&E. Customers whose applications were filed after April 14, 2023 will receive solar service through the Solar Billing Plan.

Final permission to operate your solar system is granted by PG&E, regardless of whether or not you are an MCE customer. PG&E will review your completed application and a diagram of your system. Upon a successful evaluation, PG&E will install your bi-directional meter. After receiving your “Permission to Operate” letter, you can operate your solar system.

FAQ

As a NEM customer, you’ll be credited for production of electricity at your applicable retail rates each month. Excess generation credits will be carried forward on your MCE billing statement, and applied to future generation charges (within the annual period) automatically. MCE charges NEM customers for electricity usage on a monthly basis after applying any accrued generation credits – this is different from PG&E’s yearly true-up process in which charges or credits are reconciled annually.

Following your April billing cycle, MCE will perform a reconciliation of your account. At that time, your retail credits will be reset to $0. MCE will also determine if you’re eligible for a cash-out payment. If you produce more electricity than you consume within the annual period, you’ll be automatically compensated for your surplus generation at the NSC rate plus $0.02 per kWh. Cash-out balances of $200 or less will be applied as a bill credit, while balances over $200 will be automatically paid in the form of a check. Cash-outs are subject to an annual $5,000 cap per account.

Please note that MCE customers are still subject to a separate true-up for PG&E non-generation charges.

No, you are not being double-billed. The monthly MCE charges reflect the electric generation costs associated with energy consumed from the grid. Your PG&E true-up reflects electric delivery costs for services like line-maintenance, transmission, and distribution. If you were not an MCE customer, BOTH electric generation and electric delivery charges would have been billed at true-up, resulting in a large lump sum due.

Your MCE cash-out is separate from your PG&E true-up. MCE compensates you annually based on your net surplus generation at the end of your 12 month cash-out cycle ending in April – regardless of your true-up date. Please also note that your PG&E true-up reflects charges/credits associated with electric delivery – not the energy itself – and you are only compensated for the value of your exported energy. PG&E will not compensate you for electric delivery.

If you are an existing solar customer in a new MCE service area, your account will be enrolled with MCE service to correspond with your PG&E true-up date unless you choose to opt out and remain a PG&E bundled customer.

When you switch to MCE, your NEM billing will be completed as follows:

  • PG&E will continue to charge you for all electric delivery (non-generation) services. “Minimum Bill Charges” and gas charges will be due on your monthly statements. Other electric delivery charges (such as transmission, public purpose programs, conservation incentive adjustment, etc.) will be billed annually via PG&E’s annual true-up process, as described in your monthly Net Metering Statement.
  • MCE generation charges will also be settled in your monthly bill, rather than PG&E’s annual true-up process. If credits for generation are earned, they will be noted on the bill as well.

For further information about how MCE will administer credits and charges for the generation portion of your bill, please contact our customer care team at 1 (888) 632-3674, Monday-Friday.

If you generate more electricity than you use, MCE cashes out your net generation at a significantly higher rate — the NSC rate plus $0.02/kWh.

In addition to the cash-out program benefits, MCE also provides more renewable energy to your home at a cost-competitive price. If you produce less electricity than you use, you can ensure that your electricity usage is sourced from 60 or 100% renewable resources. Many of MCE’s NEM customers utilize MCE’s Deep Green 100% renewable energy option for their remaining electricity usage so that all of their electricity is from renewable sources.

Retail credits for excess energy production cannot be applied towards non-generation charges, such as monthly service, distribution, transmission, or gas charges. This applies to both MCE and PG&E “bundled service” customers.

Any MCE customer who meets PG&E’s NEM/SBP program requirements is eligible for MCE’s NEM/SBP program. Generally, this includes customers with renewable electric generation systems (such as solar, wind, biogas, and fuel cell installations) that are less than 1,000 kW. The average residential installation is 5 kW and the average commercial installation is 100-200 kW.

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