Net Energy Metering Program

NEM Update

To be connected to SDG&E’s system under the current NEM rules, we must receive:

  1. A completed NEM application with signed Terms and Conditions
  2. The electrical clearance from the City / County

A reservation system for submitted NEM applications is being considered by the CPUC but the details are not yet final. We will update this web page if a reservation system is established.

Follow our progress on reaching the NEM cap.

New NEM Rules

  • Earlier this year, the CPUC issued a final decision on the new NEM rules.  The decision can be found here.
  • We’re in the process of implementing the new changes which include:
    • An interconnection fee to  be charged at the time of filing the application for systems < 1MW.  The fee is expected to be no more than $150. 
      • SASH projects (Grid Alternatives) will not be charged the interconnection fee.
      • Systems > 1MW will be charged according to Rule 21.
    • Customers will pay certain “non-bypassable” charges on the kWh delivered from the distribution grid.  The relevant charges are for Public Purpose Programs,  Nuclear Decommissioning,  Competition Transition, and the  Department of Water Resources bond.
    • Residential NEM customers will be placed on a Time of Use (TOU) rate in the future.

What is the Net Energy Metering Program?

The Net Energy Metering (NEM) Program is for customers with a solar system(s). If your system(s) produces more energy than you use, you can earn bill credits for the excess power you put back into our electric grid.  You can later use that credit to cover the power you may require from us at times when your own self-generation doesn’t fully meet your needs. 


Any SDG&E residential or commercial electricity customer who generates at least some of their electricity is eligible for net metering.

The two basic eligibility requirements are:

  • Your electricity generating system must be powered by solar or wind energy or a combination of the two
  • Your system must not exceed 1 Megawatt of peak power output per meter.

Inspections and Fees

There are no special fees required. SDG&E will perform an inspection as part of the interconnection process to make sure that your solar electric system (SES) is connected safely before connection to the electric grid.

All solar installations must comply with the SDG&E gas and electric standards.  

Learn more about gas and electric standards here

NEM Energy Charges

There are no extra charges for being a Net Energy Metering customer or for the electricity that you self-generate.  You do need to select an electric rate. See NEM Rates below.

NEM Rates

For homeowners, the bill credits you earn and the electricity that you consume, (that is not covered by bill credits,) are based on the electric or billing rate you select when you join the program. You can opt for the NEM billing rate or elect to stay with your residential rate.  Click below to do a self-analysis of your regular energy usage to select the rate that's right for you.

Learn more


SDG&E rates and rate design, including the rates and rate design reflected in this Tariff, are subject to change in conjunction with changes to the utility revenue requirement and changes to the utility rate design.

Your NEM Bill

Now that you're self-generating part of your power,  you're probably wondering how you'll be billed.  You should expect to receive two bills from SDG&E; one bill for your solar meter and one bill for your gas and other non-solar meters if you have any. Click below for the specifics.

More information regarding your bill


There is a state-mandated cap on Net Energy Metering.  Click below for the formula for current percent of cap and the current calculation.

See the cap