Net Energy Metering

Net energy metering is a type of Distributed Generation that allows customers with an eligible power generator to offset the cost of their electric usage with energy they export to the grid. A specially programmed “net meter” will be installed to measure the difference between electricity the customer purchases and exports to the grid. The methods of applying credit for exported energy vary with the program.

To qualify for net energy metering at PG&E:

  • Your generator size must be less than or equal to 1 megawatt (1,000 kilowatts).
  • Your generating system must be powered by an eligible renewable power source.
  • You are not interconnecting to a secondary network distribution line.
  • Your generating system components have been reviewed and approved by PG&E.
  • You have first established an electrical account with PG&E at the interconnection site. If another company supplies your electricity, you must contact that company about net energy metering.
  • You have completed and supplied all required documentation to PG&E.
  • You have allowed PG&E to inspect your system and install the required “net meter” accessible to a PG&E meter reader.
  • You have received written authorization from PG&E to operate in parallel.

A Net Energy Metering (NEM) account works with a second rate schedule, which is referred to as your otherwise-applicable-rate schedule (OAS). You request an OAS in your Interconnection Agreement. The OAS determines the rates and charges for setting up the NEM meter and the calculation of your NEM bills. Your OAS may be any metered rate schedule for which your account would be eligible if you did not have a generating facility, and does not have to be the rateschedule established prior to your becoming a NEM customer.

The NEM programs are:

  • Standard NEM: A solar and wind energy program for Residential and Small Commercial rate customers whose generator size is 30 kilowatts or less
  • Expanded NEM: A solar and wind energy program for Agricultural and Demand Rate customers whose generator is of any size and for Residential and Small Commercial rate customers whose generator capacity is over 30 kilowatts
  • NEMVMASH: A solar energy program for customers living in low income multi-family affordable housing.
  • NEMBIO: For customers with generators fueled from an eligible biogas digester.
  • NEMFC: For customers with eligible fuel cell generators.

Note: Interconnecting a generating system through Net energy metering (NEM) may make you ineligible for certain Demand Response programs. For more information, please contact PG&E.