NEM

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NEM (Solar Credits) Explained

Simply put NEM or Net Energy Metering is the way you can get compensated by the power company for the electricity you send to them. Each power company works a little bit differently.

LADWP

When you produce more power than you are using during the day you will receive credits equal to what LADWP charges. Those credits will then be used to cover usage when you’re not producing (at night) or under producing. Some months you will have left over credit which you’ll see as a dollar amount on the bill. This will be applied to the month where you under produce.

The credits never expire. You also do not get money for them. The only way you lose them is if you have some unused credits and you move from the property.

LADWP charges a minimum $10 per month to be connected to the grid when you are not paying them for electricity

LADWP
SoCal-Edison

SoCal Edison & PG&E

SCE and PG&E are part of CPUC (CA Public Utility Commission). They recently changed from NEM 2.0 to NEM 3.0 (NBT).

With these changes, when you produce more power than you are using during the day you will receive credits equal to the wholesale price they pay when buying power to distribute to their grid. The wholesale price of energy is typically about 25% of what they charge.

This means your evening usage will not always be covered. To get around this you either need to add more panels to offset the difference or add a battery to power some or all of your home at night when you’re not producing.

SCE & PG&E charge “non-bypassable” charges monthly as well which typical amounts to $9-$12 a month.

Burbank W&P

When you produce more power than you are using during the day you will receive credits equal to what BWP charges. Those credits will then be used to cover usage when you’re not producing (at night) or under producing. Some months you will have left over credit which you’ll see as a dollar amount on the bill. This will be applied to the month where you under produce.

You can choose to get paid annually for any credit unused or to have them continually roll over indefinitely.

BWP typically charges a minimum $10-$13 per month to be connected to the grid. The only way it is more than this is if you have extra large electric panel capacity which most homes do not have.

burbank
Pasadena-WP

Pasadena W&P

When you produce more power than you are using during the day you will receive credits equal to what PWP charges. Those credits will then be used to cover usage when you’re not producing (at night) or under producing. Some months you will have left over credit which you’ll see as a dollar amount on the bill. This will be applied to the month where you under produce.

You can choose to get billed or paid annually for the difference in production and consumption or you can select monthly or bi-monthly billing. To have the option of getting money for excess generation the credits have to be worth over $50.

PWP typically charges a minimum $14 per month to be connected to the grid. The only way it is more than this is if you have extra large electric panel capacity which most homes do not have.

Glendale W&P

When you produce more power than you are using during the day you will receive credits at a rate of 10 cents per kWh. Those credits will then be used to cover usage when you’re not producing (at night).

Some months you may have left over credit which you’ll see as a dollar amount on the bill which carries over for up to 12 months to be applied to the months where you under produce. If you have credits left over after the 12 month period you must submit an additional form to GWP to get paid or have it carried over to the next year.

You can choose to have unused credits applied as kWh credits on the bill or as monetary credits

GWP typically charges about $15-17 per month to be connected to the grid. It varies depending on how many days are in each particular bill cycle

Glendale