On June 9, 2011, the California Public Utilities Commission (CPUC) approved the Net Surplus Compensation (NSC) rate for Net Energy Metering (NEM) customers who produce more electricity (kWh) than they use over their true-up period, usually 12 billing months. This payment was authorized by Assembly Bill 920 (AB 920). The NSC rate may fluctuate every month, as it is based on a rolling 12 month average of spot market prices. Based on current market prices, the rate would be around 4 cents per kWh.
In 2009, the law governing the NEM program for solar and wind generators was revised by AB 920 to allow payment to those customers who have generated more electricity (kWh) than they used at their annual true-up beginning January 1, 2011.
AB 920 took effect as of January 1, 2011. So, all customers who qualify on or after that date will receive payment for their excess generation as soon as the regulatory requirements are in place for the payment portion of the program. We are working as quickly as possible to comply with these requirements so that we can pay customers.
If during the course of your true-up period (typically 12 billing months), the electricity (kWh) exported to SDG&E by your solar or wind generator is greater than the electricity you used onsite, you will have excess generation.
On your annual true-up statement, if the Total Energy amount (kWh) is negative, you have excess generation and are entitled to a credit. If the Total Energy amount is positive, you used more electricity than you produced over the course of your true-up period and will not receive a credit.
The AB 920 program has been in effect since January 1, 2011. The CPUC requires that SDG&E fulfill certain regulatory requirements before it can begin paying customers. We expect to begin paying customers September 2011. If you have already had a true-up that occurred earlier in 2011, you will still receive your compensation.
The NEM solar program is designed to enable customers to offset usage, not generate surplus energy. In order to participant in the NEM program, you are required to install a PV system that allows you to offset your annual onsite consumption.
As an existing NEM customer, SDG&E has automatically enrolled you into the program, and your eligibility for payment will start with your 2011 true-up bill. For example:
If you have excess generation at the end of your typical 12-month true-up period starting in 2011, you will qualify for payment for any excess generation.
If you do not have excess generation at the end of your typical 12-month true-up period, you will not be eligible for payment and there will be no change from the current NEM program. If you have excess generation in any subsequent 12-month true-up, you will qualify for payment and be notified of your eligibility.
Note that your true-up may be any number of months, as long as it ends in 2011 or thereafter. For most customers it will be a 12- month cycle.