The Solar Billing Plan (SBP)—also known as NEM 3.0 or the Net Billing Tariff (NBT)— is a successor program to Net Energy Metering (NEM) 2.0. The SBP is the state-mandated program for all new solar and battery storage customers. If your solar system was interconnected on or after April 15, 2023, you are automatically enrolled in the SBP. The following residential customers are billed under the SBP:
- The solar system application to interconnect date was completed after April 14, 2023
- The system has completed a 20-year legacy period on NEM 1.0 or NEM 2.0. Customers on NEM 1.0 who transitioned to NEM 2.0 at the end of their legacy period are not permitted to receive an additional 20 years on NEM 2.0.
- The generation capacity of an existing solar system is increased by 1kW or 10% of the current system size.
PG&E implemented its Solar Billing Plan in April 2024 for residential customers, with VCE’s plan beginning in late 2024. The non-residential SBP launched for PG&E and VCE in Spring 2026. Our SBP policy aligns with PG&E’s policy. Eligible customers who were previously billed on NEM will transition based on the timing of their PG&E true-up month.
How it Works
The Solar Billing Plan (SBP) creates a two-way conversation between your solar system and the utility grid based on the variation in energy imports and exports. Your interconnection application is with PG&E; you don’t need our approval to install solar. We offer bonus credits for exports to better compensate you for your system’s generation.
Monthly Statement
- Imports and exports from your solar system are billed separately. Each month, your charges and credits will be summed to calculate your monthly bill.
- Imports are charged based on the retail rate of electricity that aligns with your electric rate schedule. Residential SBP customers are required to be on the E-Elec rate plan with PG&E.
- Exports of excess energy generation will receive compensation in the form of Energy Export Credits (EEC), which vary by hour and day and align with the value of the energy at that time. In addition, eligible customers will receive the following Bonus Credits. All excess credits will roll over month to month.
- Energy Export Bonus Credits (EEBC): New voluntary residential solar installs will receive additional credits for exports depending on the year they interconnect. PG&E also provides this credit to their customers. These rates are locked in for a 9-year period from the customer’s permission-to-operate date. PG&E’s information can be seen here.
Annual True-Up Statement
- At the end of the annual February true-up period, if you produced more electricity than you used, you will be compensated for surplus generation.
- Your annual compensation, or cash-out value, is based on surplus kWh multiplied by the Net Surplus Compensation rate, minus the approximate value of Energy Export Credits already provided during the year for that same energy..
- If your cash-out value is less than $100, this will stay on your account and can be used for future monthly charges. If your cash-out value is greater than or equal to $100, you will be sent a check.
- Cash-out checks are typically sent out in March-April following the February true-up.
Solar Billing Plan FAQ
What is the Solar Billing Plan (SBP)?
The Solar Billing Plan (SBP) is a successor program to Net Energy Metering (NEM) 2.0. The program is for customers who submitted an interconnection application on or after April 14, 2023, and for customers who have completed 20 years on the NEM 1.0 or 2.0 tariff.
PG&E implemented the Solar Billing Plan in April 2024 for residential customers and June 2024 for non-residential customers. Eligible customers may have received a letter from PG&E explaining their transition to the new solar policy, which will affect PG&E delivery charges.
Customers will see their PG&E delivery billing change when the Solar Billing Plan goes into effect for PG&E. Customers will continue to be billed on VCE’s current NEM policy for their generation charges until our updated policy is approved and implemented.
What is the difference between NEM and SBP?
NEM customers are charged or credited based on their net energy usage each month. SBP handles imports and exports of energy separately. Imports are charged based on the retail rate and exports are credited at the Energy Export Credit (ECC) rate, which varies by day and hour. Customers’ charges and credits are then netted to calculate the monthly bill.
Why and when is VCE adopting the Solar Billing Plan (SBP)?
VCE is updating its solar policy to align with PG&E’s SBP policy. The SBP is intended to fairly compensate customers for excess generation, reduce the cost shift from solar customers to non-solar customers and encourage the adoption of solar with storage. A new tariff structure that incentivizes widespread battery storage adoption will better support our current grid needs, because battery storage allows customers to save solar energy for use or export in the evening hours, contributing to grid reliability and the displacement of fossil fuels.
VCE customers will transition based on their PG&E true-up date and expiration period on their current NEM tariff in summer 2024. NEM customers receive 20 years on their NEM tariff before transitioning to SBP. All new solar customers will start service on SBP.
How do I know if I am a Solar Billing Plan (SBP) or Net Energy Metering (NEM) customer?
On your PG&E blue bill, under “Your Enrolled Programs” you should see either Solar Billing Plan or Net Energy Metering. You may also login to your online PG&E account (pge.com/myaccount) or call VCE at 1-855-699-8232 to check your status.
Does the Solar Billing Plan impact existing solar customers?
No. Existing solar customers that were approved to turn on their solar system by April 14, 2023 are not impacted by this new program, unless they fall into one of the following categories:
- Customers who increased the generation capacity by 1kW or 10% of their current system size
- Customers who have completed their 20 year NEM legacy period on their original NEM program.
- Customers on NEM 1.0 who transitioned to NEM 2.0 at the end of their legacy period are not permitted to receive an additional 20 years on NEM 2.0.
What is the Base Services Charge?
The Base Services Charge is a fixed $15/ month charge for E-Elec (Electric Home) rate customers. This rate plan lowers the price you pay per unit of energy (kWh). Residential SBP customers are required to be on E-Elec.
What is a true-up? What is the difference between monthly statements and the annual cash-out in February?
A true-up is a reset of charges and credits. All SBP customers are billed monthly for any amount due. VCE’s annual cash-out is every February, when customers will be compensated for any surplus generation that amounts to a credit balance.
What is the true-up adjustment?
The true-up adjustment reduces the NSC amount by the approximate value of Energy Export Credits already provided in prior months. It is calculated based on the surplus kWh multiplied by a rate equal to PG&E’s average real-world retail export compensation rates for all NBT customers in their service territory over the past 12 months.
Can I still have annual billing (where my charges roll over until my true-up date) with SBP?
With the solar billing plan, you will receive monthly billing and are not able to carry over charges.
How will I transition from NEM to SBP? Will I true-up and lose my NEM credits?
Customers will see their NEM credits transfer into their Energy Export Credit balance with VCE. They will not experience an off-cycle true-up.
What happens with my credits if I close my account or leave VCE prior to the February cash-out period?
Accounts that terminate or leave VCE service prior to February are eligible for the VCE annual cash-out process and will be sent a check for any surplus generation that amounts to a credit balance. Customers that opt out and choose PG&E should be advised that PG&E will perform a true‐up of their account at the time of return to PG&E bundled service, and that PG&E’s standard terms for transitional rates apply to customer returns with less than a six‐month advance notice if they have been an VCE customer for 60 days or more.