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.

There are several ways you can minimize the electricity you receive from SCE to supplement your solar generating system. The best thing you can do is be mindful of the time of day and weather – your system won’t be generating when it’s dark out, and it will produce less when there’s cloud cover. Even small changes can make a difference to your bill. We’ve listed a few recommendations below to help you make the most of your solar-produced power:

• Shift major appliance and equipment use to off-peak daytime hours (8 a.m. - 2 p.m.) when your solar generating system is active.
• Try not to use too many appliances simultaneously during the day, so your system can keep up.
• Periodically have your solar panels professionally cleaned.
• Run your pool pump during the daytime.
• Consider investing in a battery storage system to keep more of your self-generated energy for use at night.

Remember that if you make changes or investments like buying electric vehicles or installing a pool, your energy consumption will increase. If your system was not sized with these investments in mind, you’ll either need to upgrade your solar generating system or use more energy from SCE.

We offer options to eligible customers who are unable to pay their annual settlement statement in full. Payment plans, bill support and financial assistance programs are available to those who qualify. Learn More >

You can also consider changing your billing to the Monthly Billing Option (MBO). With MBO, you pay your net energy charges every month, instead of in one lump sum at the end of the year, so you’ll level out your payments and avoid a potentially high settlement statement. You can opt in to MBO by logging-in and submitting this form.

NEM customers are still eligible to participate through Community Choice Aggregation (CCA). Since your NEM service will be provided by the CCA, your generation credits and charges will be administered through that CCA as well. While you will receive a bill from SCE that incorporates those charges and credits as well as set fees, we recommend you contact your CCA for additional information on how your generation credits and charges are administered.

A NEM Interconnection Agreement was completed when your solar generating system was added to your property and interconnected to our electric grid. For your reference, standard NEM Interconnection Agreements and NEM Rate Schedules can be found here.

Note: NEM Rate Schedules are subject to change per the California Public Utilities Commission (CPUC).