How We Compensate you for Excess Power Generation

If you’re already enrolled in our NEM program—thank you! You’re offering us a valuable resource, and we appreciate your conservation. We always make sure you’re adequately compensated for the energy you “sell” to us. Every 12 months, we reconcile your account to review:

  • What you’ve purchased from the utility

  • Excess generation you’ve returned to the grid

  • Any payments or other adjustments made to your account

We call this a true-up period. At true-up, any remaining credits are also applied “backward” to any months that you may have had usage prior to having generation credits. And if the number of kWhs you returned to the grid exceeds the number of kWhs you’ve purchased, you’ll be compensated for the difference.

How We Compensate You

Compensation is made up of two components:

  • Wholesale value of the commodity— a rolling average based on the utility’s Default Load Aggregation Point (DLAP) price from 7 a.m. to 5 p.m.

  • Renewable Energy Credit (REC)—the portion of the excess generation compensation is the added value provided because the generation is from a renewable energy source

Your account will automatically be credited for the wholesale value if there’s any excess generation after your annual true-up. We’ll multiply the number of excess kWh you have by the average price applicable to your true-up month. See true-up table below.

To learn more about the process if you’d like to “cash out” with a refund check, please call our Customer Contact Center at 1-800-411-7343.

Renewable Energy Credit

Our NEM program is for customers who generate renewable energy. The Renewable Energy Credit (REC) portion of the excess generation compensation is the added value provided because the generation is from a renewable energy source. This additional compensation is called a Renewable Attribute Adder.

The California Energy Commission (CEC) has determined the eligibility for NEM customers and developed an ownership verification and tracking process for RECs created by net surplus generators. You can find it in the CEC guidebook, sections IV, V, VII available at:http://www.energy.ca.gov/renewables/documents/#rps

The current CEC implemented process is complicated and really only financially viable for  those customers who produce more than 12,000 surplus kWhs over a 12-month period[1].

In order for customers to receive this Renewable Attribute Adder they need to:

  1. Obtain certification from the CEC and provide a copy to SDG&E.
  2. Transfer the ownership of the RECs associated with the net surplus electricity to SDG&E using the Western Renewable Energy Generation Information System (WREGIS). The renewable attribute adder will only be paid to those net surplus generators who provide RECs to the Utility. This rate is updated annually. Please note WREGIS will require the customer to become an “Account Holder”. There's a fee to become a WREGIS Account Holder. The WREGIS fee is based on the amount of kwhrs transferred and the frequency of transfers.
  3. Complete the Net Energy Metering Renewable Energy Credits Compensation Agreement.

To receive the renewable attribute adder, please return the Net Energy Metering Renewable Energy Credit Compensation Agreement (Form 182-100) along with your CEC Regional Energy Portfolio certification form to:

Net Metering/Customer Generation
8306 Century Park Court, CP52F
San Diego, CA 92123

[1] Determined by calculating the Annual WREGIS Account Holder Cost to Renew divided by the Renewable Attribute Rate per kWh 

Additional Resources

The California Energy Commission (CEC) has California Energy Commission verification and tracking process for renewable energy credits.

89.52 KB
PDF
Net Energy Metering renewable energy credits compensation agreement
Net Energy Metering renewable energy credits compensation agreement
Month Year $/kWh
August 2018 0.03416
July 2018 0.0331
June 2018 0.03315
May 2018 0.03269
April 2018 0.03176
March 2018 0.02976
February 2018 0.02949
January 2018 0.02915
December  2017 0.02876
November 2017 0.02778
October 2017 0.02795
September 2017 0.02700
August 2017 0.02766
July 2017 0.02760
June 2017 0.02781
May  2017 0.02780
April 2017 0.02799
March 2017 0.02817
February 2017 0.02791
January 2017 0.02752
December 2016 0.02696
November 2016 0.02692
October 2016 0.02718
September 2016 0.0278
August 2016 0.02749
July 2016 0.02786
June 2016 0.02787
May 2016 0.02850
April 2016 0.02912
March 2016 0.03027
February 2016 0.03119
January 2016 0.03172
December 2015 0.03306
November 2015 0.03446
October 2015 0.03566
September 2015 0.03695
August 2015 0.03824
July 2015 0.03961
June 2015 0.04140
May 2015 0.04356
April 2015 0.04572
March 2015 0.04746
February 2015 0.04937
January 2015 0.05017
December 2014 0.05074
November 2014 0.05082
October 2014 0.05031
September 2014 0.05042
August 2014 0.04970
July 2014 0.04967
June 2014 0.04834
May 2014 0.04817
April 2014 0.04820
March 2014 0.04780
February 2014 0.04680
January 2014 0.04649
December 2013 0.04572
November 2013 0.04514
October 2013 0.04587
September 2013 0.04587
August 2013 0.04630
July 2013 0.04472
June 2013 0.04362
May 2013 0.04202
April 2013 0.03995
March 2013 0.03864
February 2013 0.03768
January 2013 0.03711
December 2012 0.03639
November 2012 0.03577
October 2012 0.03460
September 2012 0.03388
August 2012 0.03335
July 2012 0.03413
June 2012 0.03424
May 2012 0.03436
April 2012 0.03511
March 2012 0.03551
February 2012 0.03602
January 2012 0.03658
December 2011 0.03699
November 2011 0.03711
October 2011 0.03740
September 2011 0.03692
August 2011 0.03661
July 2011 0.03639
June 2011 0.03648
May 2011 0.03653
April 2011 0.03673
March 2011 0.03775
February 2011 0.03876
January 2011 0.03980