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Note: No new Permissions to Operate (PTO) will be issued to NEM FC projects after December 31, 2023, or after 281 MW of Fuel Cells reach PTO under NEM FC, whichever occurs first. As of September 1, 2023, there are 169.89 MW of fuel cells with PTO under NEM FC, and 59.61 MW of fuel cells under NEM FC in the interconnection process (i.e., pending PTO).
Qualifications
The Net Energy Metering for Fuel Cells (NEMFC) rate schedule is an optional rate schedule for a customer who installs a fuel cell generator to supply some or all of the customer's own energy needs. Criteria for NEMFC includes:
- The maximum generator size is 5 megawatt (MW).
- The fuel cell must operate in parallel with PG&E's grid.
- The account must be on a time-of-use rate (TOU) schedule.
- The fuel cell technology selected must be one that the California Public Utilities Commission (CPUC) determines will achieve reductions in greenhouse gases.
| Item requested | Purpose |
|---|---|
| PG&E Interconnection Portal | PG&E Interconnection Portal provides PG&E with important customer, contractor and system equipment information about the project.
|
| Single-Line Diagram | Single-line diagram shows applicable equipment (generating units, step-up transformers, auxiliary transformers, switches/disconnects and required protection devices/circuit breakers). |
| Authorization to Receive Customer Information or Act on a Customer's Behalf (Form 79-1095) | This form is required if a third party is to handle the application process. This gives the third party (usually the contractor) temporary authorization to act on the customer's behalf and receive confidential customer information. The authorization is required for the third party to receive a copy of the customer's permission to operate.
|
| Variance Request | The customer or customer's contractor can request a variance from PG&E if the project is unable to meet the requirements described in the Distribution Interconnection Handbook and Greenbook.
Visit Distribution Interconnection Handbook
Visit Greenbook |
| Customer-Owned Telemetry or PG&E Installed Telemetry | Project’s with a net generation capacity of 1MW or greater require telemetry per section J.5 of the Rule 21 tariff. PG&E is now offering interconnection customers the option of using their own telemetry solution using one of PG&E’s approved device or aggregator vendors. More information can be found in our intro/FAQ document on the Distribution Interconnection Handbook page. |
| Item requested |
|---|
| PG&E Interconnection Portal |
| Purpose |
| PG&E Interconnection Portal provides PG&E with important customer, contractor and system equipment information about the project.
|
| Item requested |
|---|
| Single-Line Diagram |
| Purpose |
| Single-line diagram shows applicable equipment (generating units, step-up transformers, auxiliary transformers, switches/disconnects and required protection devices/circuit breakers). |
| Item requested |
|---|
| Authorization to Receive Customer Information or Act on a Customer's Behalf (Form 79-1095) |
| Purpose |
| This form is required if a third party is to handle the application process. This gives the third party (usually the contractor) temporary authorization to act on the customer's behalf and receive confidential customer information. The authorization is required for the third party to receive a copy of the customer's permission to operate.
|
| Item requested |
|---|
| Variance Request |
| Purpose |
| The customer or customer's contractor can request a variance from PG&E if the project is unable to meet the requirements described in the Distribution Interconnection Handbook and Greenbook.
Visit Distribution Interconnection Handbook
Visit Greenbook |
| Item requested |
|---|
| Customer-Owned Telemetry or PG&E Installed Telemetry |
| Purpose |
| Project’s with a net generation capacity of 1MW or greater require telemetry per section J.5 of the Rule 21 tariff. PG&E is now offering interconnection customers the option of using their own telemetry solution using one of PG&E’s approved device or aggregator vendors. More information can be found in our intro/FAQ document on the Distribution Interconnection Handbook page. |
The customer should apply using the PG&E Interconnection Portal and submit a single-line diagram as soon as possible, even before the system is built. This will allow PG&E's engineers to review the proposed system and, if necessary, request modifications, which may alter the total cost and interconnection timeline of a project.
Download Generator Interconnection Process Timeline (PDF)
Attention: PG&E may not be able to interconnect a generator if it is located in certain areas of San Francisco or Oakland. For more information, download Secondary Networks (PDF)
The following items are required in order for PG&E to issue written permission to operate a generating facility:
| Item requested | Purpose |
|---|---|
| Proof of Liability Insurance | Customer-generator must provide and maintain general liability insurance. |
| Interconnection Agreement for Net Energy Metering of Fuel Cell Generating Facilities (Form 79-1010) | Interconnection agreement form is a legal contract between PG&E and the customer outlining each party's responsibilities.
|
| Interconnection Inspection Fee | This fee covers the cost of the final interconnection inspection based upon the fuel cell equipment and type of interconnection. |
| Signed-Off Building Permit | The completed permit indicates that the finished project has been inspected and approved by the local building authority. |
The following items are required in order for PG&E to issue written permission to operate a generating facility:
| Item requested |
|---|
| Proof of Liability Insurance |
| Purpose |
| Customer-generator must provide and maintain general liability insurance. |
| Item requested |
|---|
| Interconnection Agreement for Net Energy Metering of Fuel Cell Generating Facilities (Form 79-1010) |
| Purpose |
| Interconnection agreement form is a legal contract between PG&E and the customer outlining each party's responsibilities.
|
| Item requested |
|---|
| Interconnection Inspection Fee |
| Purpose |
| This fee covers the cost of the final interconnection inspection based upon the fuel cell equipment and type of interconnection. |
| Item requested |
|---|
| Signed-Off Building Permit |
| Purpose |
| The completed permit indicates that the finished project has been inspected and approved by the local building authority. |
There are no study costs to apply for interconnection under the NEMFC program. However, it is important to note that potential upgrades to PG&E's grid may be necessary, and a customer may be required to pay for the system upgrade, depending on the type of upgrade, in accordance with Electric Rule 21.
A NEMFC program participant will be charged interconnection inspection fees, as follows:
| Inspection fee | Description |
|---|---|
| $180 | If eligible fuel cell incorporates California Energy Commission (CEC)-certified inverters, and there are no aggregated accounts. |
| $480 | If eligible fuel cell incorporates CEC-certified inverters, and there is one or more aggregated accounts. |
| TBD | If eligible fuel cell incorporates non-CEC-certified inverters, and there may or may not be aggregated accounts. |
There are no study costs to apply for interconnection under the NEMFC program. However, it is important to note that potential upgrades to PG&E's grid may be necessary, and a customer may be required to pay for the system upgrade, depending on the type of upgrade, in accordance with Electric Rule 21.
A NEMFC program participant will be charged interconnection inspection fees, as follows:
| Inspection fee |
|---|
| $180 |
| Description |
| If eligible fuel cell incorporates California Energy Commission (CEC)-certified inverters, and there are no aggregated accounts. |
| Inspection fee |
|---|
| $480 |
| Description |
| If eligible fuel cell incorporates CEC-certified inverters, and there is one or more aggregated accounts. |
| Inspection fee |
|---|
| TBD |
| Description |
| If eligible fuel cell incorporates non-CEC-certified inverters, and there may or may not be aggregated accounts. |
The customer can choose to aggregate the load of the fuel cell customer's generator accounts where the fuel cell customer generator is the customer of record and the following requirements are met:
- The accounts are on an applicable time-of-use (TOU) rate schedule.
- The accounts are located on the property where the eligible fuel cell electrical generation facility is located or on property adjacent or contiguous to that property, as long as those properties are solely owned, leased or rented by the eligible fuel cell customer-generator.
- All the accounts are served by the same electric commodity service provider.
Cogeneration Gas Rate (G-EG):
- Applies to all cogeneration facilities that meet the efficiency requirements specified in California Public Utilities Code Section 216.6
- Provides a reduced rate for natural gas transportation charges for qualifying facilities
Additional resources
NEMFC Tariff
Electric Rule 21
2023 NEMFC Performance Data
©2025 Pacific Gas and Electric Company
©2025 Pacific Gas and Electric Company