Understanding Net Metering and Electricity Rates

Understanding SCE Net Metering

Whether you’re considering going solar or have already gone solar, you likely have questions about SCE’s upcoming rate change from net metering (NEM) 1.0 to NEM 2.0. In the spirit of making solar simple, Sunrun is happy to help guide you through these changes. We want to make sure homeowners such as yourself have the information you need to make the smart decision to go solar

What is Net Metering (NEM)?

Net metering allows solar customers to send solar energy to the grid when their solar system is producing more energy than their home needs at any given time. Solar customers can then pull energy from the grid when needed. Net metering allows you to be compensated for the energy that you’re adding to your community’s energy grid. For more information on exactly how net metering works, watch this video.

What is NEM 2.0?

The original net metering rules put a limit on the number of CA homes that could go solar. NEM 2.0 is an update in CA energy regulations that removes barriers to going solar in PG&E, SDG&E and SCE territories. NEM 2.0 eliminates CA’s net metering cap and provides certainty for CA’s solar energy future. Now all homes in CA have the opportunity to go solar.

What is time of use (TOU) billing?

You’re probably familiar with concept of prime time, right? It’s the time of day when everyone is home from work, the kids are turning everything on, and a lot of places are still open for business. Well, when your utility uses Time of Use (TOU) energy rates they charge more for power during the “prime time”—the part of the day when energy consumption is at its highest. They just call this period “peak-time”. For SCE customers peak-time is generally weekdays from 12:00-6:00 p.m. Weekends, holidays, mornings and overnight are off-peak times and have lower rates. The great news for Sunrun customers is that no matter when you use energy you’re going to save big going solar.

NEM 2.0 solar customers are some of the first utility customers to move to Time of Use (TOU) rate plans. In 2019 all PG&E, SDG&E and SCE customers will be switched to a TOU plan. TOU is becoming the new normal for setting energy rates in CA and across the USA

Sunrun will help you to be a better manager of your energy and maximize the value of your solar lease or purchase.

Why should I go solar under NEM 2.0?

First and foremost, you’re going to save a lot of money going solar. These new rules also allow all of your family, friends and neighbors to go solar—which means you can benefit from Sunrun’s referral program even better than before! See if your home qualifies for solar.

I already went solar or I want to go solar. Will I be a NEM 2.0 customer?

SCE will move to NEM 2.0 on July 1, 2017.  To fall under NEM 1.0 your system must be installed and all of the necessary paperwork required to receive Permission to Operate (PTO) must be received by SCE by June 30, 2017. Sunrun handles all paperwork submissions to the utility and we will inform you if you’ll fall under NEM 1.0 or NEM 2.0 rules. No matter which set of rules you’ll fall under you’re still going to save big going solar. If you'd like an updated savings estimate or want to learn more about NEM 2.0 and Time of Use rates, please contact your Sunrun solar consultant (if you are considering solar) or Sunrun Customer Care (if you are already a Sunrun customer) at 855-478-6786.