Understand Net Energy Metering (NEM) and Your Bill

Learn about Net Energy Metering, a special billing program for PG&E solar and renewable energy customers that helps monitor monthly energy usage and generation.

Learn How Net Energy Metering Works

Energy You Produce Energy You Consume = NET ENERGY

What to Expect from Your Bill

View a detailed explanation of each bill and the associated charges here >>

Net Energy Metering customers are automatically placed on a 12-month billing cycle. What you will receive:

1. You will receive a regular PG&E bill including only monthly minimum electric charges plus any additional gas and non-energy charges.

2. Around the same time, but in a separate envelope, you will receive your NEM statement. It provides a snapshot of your year-to-date charges and credits based on your business energy production and energy use during that period.

3. After 12 months, you will receive your NEM True-up statement. It provides your net energy charges and credits over the entire year.

How Net Energy Metering Works for Your Business

Net Energy MeteringThe electricity generated by your renewable system serves the immediate energy needs of your business and reduces your monthly electric bill. Any additional power your business requires—day or night—is automatically supplied by PG&E. In the same way, any surplus electricity your renewable system generates, but your business does not use, will be exported back to the electric grid.

How You Are Paid for Surplus Power

California State Assembly Bill 920 authorized payments to be made to NEM customers who generate more electricity than they use over their 12-month billing periodcycle. The compensation you receive—known as Net Surplus Compensation (NSC)—is based on a 12-month average of the market rate for energy, or roughly $0.03 to $0.04 per kilowatt-hour (kWh). All PG&E customers with NEM billing are automatically enrolled in the program. If you qualify, the Net Surplus Compensation you have earned will appear on your annual NEM True-up statement. Learn more about Net Surplus Compensation.

Note: Virtual Net Energy Metering (VNEM) works differently. Virtual Net Energy Metering is a program for customers in multi-unit housing with a common renewable generating system. Learn more about Virtual Net Energy Metering and how it is billed.


Calculating Net Energy

  • The Net Energy Metering program for PG&E solar and renewable energy customers allows you to reduce your monthly electric bill with the energy generated by your own solar or renewable system. A specially programmed net meter measures the difference between the amount of electricity generated at home and the amount of electricity supplied by PG&E to your home over the course of the month. Your bill is calculated using this difference, called net energy.

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