What is NEM?

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