Solar Billing Plan

If you applied for solar energy after April 14, 2023, you will be on the Solar Billing Plan. Program contracts last for 20 years and feature the following: 

  • Credit for Excess Export: When your solar system generates more energy than you use, you are credited for this surplus electricity production at the standard Energy Export Credit (EEC) rates.
  • Monthly credit roll-over: Some months your system will generate more energy than others, so your Energy Export Credit (EEC) will roll-over each month to help offset any generation charges throughout the year.
  • Annual cash-out: If you generate more energy than you use at the end of the 12-month period, you will be credited at Net Surplus Compensation (NSC) and an additional $0.01 per kWh adder. If your annual cash-out exceeds $300, we’ll send you a check; if under $300 you will receive a bill credit.  

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Transitioning from NEM 1

If you are transitioning from NEM 1, the Solar Billing Plan will be valuable, but the credit amount for power your produce has changed. Compared to NEM 1, most solar producers will earn less for their power and will consequently see an increase in their electric bill. If your solar system produces more energy than you typically consume annually, Peninsula Clean Energy’s version of the Solar Billing Plan pays more for your excess production than PG&E will. 

About the Solar Billing Plan

On December 15, 2022, the California Public Utilities Commission (CPUC) issued a ruling that changes the way new solar customers will be compensated. The new program is the Solar Billing Plan (SBP) and it succeeds the NEM (Net Energy Metering) programs.  This plan is designed to improve grid reliability by incentivizing solar customers to export electricity to the grid during on-peak hours when their exported electricity will be credited at the highest rates. Under the new Solar Billing Plan, the CPUC expects new solar customers to save roughly $100 per month on their electricity bill when compared to customers who do not have solar installed.

Existing Solar Customers

Customers who applied for solar interconnection prior to April 14, 2023 will remain on their existing NEM tariff until their 20 year legacy period expires, which is effective at the date at which their system was connected to the grid. During this period, existing solar NEM customers will receive the same retail compensation rates that they do currently. After their 20-year NEM period ends, they will then be enrolled into the new Solar Billing Plan.

Future Solar Customers

The Solar Billing Plan is the solar compensation plan for customers who applied for solar panel interconnection on or after April 15, 2023.

Solar Billing Plan Breakdown

Under the Solar Billing Plan, imported electricity charges (when you use power from the grid) and exported electricity credits (when your solar system sends excess energy to the grid) will be calculated separately. Imported electricity charges will be based on the customer’s regular PCE electric generation rate schedule. Every kWh consumed at a customer’s home from the grid will be charged based on their regular PCE generation rate, and every kWh exported to the grid from their solar system will be credited at the separate EEC rate.

Credit balances can accumulate and be carried over month-to-month as an Export Credit Balance until the PCE Annual Cash Out. While monthly PCE charges can be offset by Export Credit Balances within the 12 months leading up to the Annual Cash Out, this credit balance is not applicable to the Annual Cash Out.

Annual Cash-Out

Under the Solar Billing Plan, the annual cash out that takes place in April of each year has changed from the NEM programs. The Solar Billing Plan annual cash out value will now be determined using the Net Surplus Compensation (NSC) model. If a customer generates more electricity than they use over the 12-month period, they are considered to have a negative net total kWh value and will receive compensation from PCE. The amount of this compensation will be equal to their net total kWh value at the end of their April billing cycle multiplied by the PG&E NSC rate with an additional $0.01 per kWh adder from PCE. Annual Cash Out payments of $300 or more will be issued via check from PCE, while payments below $300 will be applied as an on-bill credit.