Net Energy Metering

Solar Billing Plan (SBP) customers: Starting on February 15, 2023, new rooftop solar applications have been approved under the new VCE Solar Billing Plan (SBP), the successor program to Net Energy Metering (NEM) 2.0.

VCE NEM Policy

  • Your meter tracks the amount of electricity you use versus the amount of electricity your solar system delivers to the grid.
  • When you produce more electricity than you consume, like in the middle of the day, that excess generation is credited and put in a “savings account.”
  • When you consume more than your solar system produces, you withdraw credits from that account. If you have insufficient credits accrued, VCE will either charge you for the net amount of energy you needed that month (customers on a monthly true-up) or debit from your account (customers on an annual true-up).
  • VCE NEM customers receive the same credits and charges they received with PG&E.
  • VCE NEM customers receive a 1 cent/KWh bonus.
  • Every February, VCE customers who produced more electricity during the year than they used receive a cash-out payment for each kWh.
  • Customers on an annual true-up will be billed for energy consumption in February if they consumed more energy than they produced throughout the year
  • You continue to pay PG&E their minimum monthly delivery charge and have your annual true-up with PG&E on your interconnection anniversary date for the services they provide.
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Choose Annual or Monthly True-up

Customers on our Standard VCE NEM program can choose an annual true-up option or remain on our monthly true-up plan. You can select an annual true-up online or by speaking with an VCE customer service representative (1 (855) 699-8232).

Monthly true-up

If you generate more electricity than you use in a given billing month, the excess NEM credits accrue in your account. You pay for consumption monthly if you do not have enough NEM credits in your account balance to cover monthly charges. Monthly true-up customers receive annual payments for surplus generation at the February cash-out.

Annual true-up

You will not be billed monthly for generation service. Credits and debits for consumption and net generation roll over until the annual true-up in February. You may owe due to under-generation, or receive payment, at the February true-up.

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 (PDF).
  • 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 June – July following the February true-up.

Additional Resources (TBD)

  • Sample Bill: Residential net generator (PDF)
  • Sample Bill: Residential net consumer (PDF)
  • Learn more about VCE NEM: VCE’s NEM One-page summary (PDF).
  • Updated NEM Tariff effective February 2023 (PDF)

Net Energy Metering (NEM) FAQs

In addition to the financial benefits of VCE’s Net Energy Metering program, solar customers benefit from being served by a local, not-for-profit public agency. VCE customers receive Standard Green service or can choose UltraGreen, VCE’s 100% renewable and 100% carbon-free electricity option. VCE reinvests revenues in local energy programs, clean-energy projects and services that benefit the communities we serve. Our Board is made up of locally elected representatives, and Board and Community Advisory Committee meetings are open to the public.

VCE customers can also participate in eligible VCE and PG&E programs. Visit our Programs page to learn more.

With VCE service, the default is a monthly true-up. That means that, if you are a net consumer, you will pay for that month’s charges or your credits will be applied to cover the cost. If you are a net producer, you will accumulate credits that can be applied to future bills. These credits are paid out during the February cash-out period according to our annual cash-out terms. Your PG&E electric delivery charges will continue to be trued up on an annual basis.

You can also choose an annual true-up with VCE, which would roll over credits and debits until the true-up in February. Annual true-up customers will receive either a bill if usage exceeds generation or a payment for surplus generation at the February true-up. The majority of VCE’s NEM customers consume more electricity than they generate annually.

Your PG&E electric delivery charges will continue to be trued up on an annual basis.

A true-up is a reset of NEM charges and credits. If you have an amount due, you will be billed at your true-up. For NEM customers, PG&E does an annual true-up for the transmission and delivery charges. VCE offers a monthly and annual true-up for generation charges, with a monthly true-up being the default.

With a monthly true-up, customers receive credits for overgeneration and are billed for usage each month. Every February, customers receive compensation for any surplus generation.

With an annual true-up, customers are not billed monthly. Customers receive credits for overgeneration monthly and credits and debits roll over until the annual true-up in February.

The main difference between monthly and annual is the timing of when you pay for usage that is not covered by your own generation. Most customers will, over the course of the year, do about the same financially on either true-up option. Customers that tend to significantly over-generate in March and February may see a small financial benefit to choosing the annual true-up option. This is because on an annual true-up you can use credits generated at the end of the year to cover previous months’ charges. On the other hand, customers that tend to be net consumers annually may not like the annual true-up because it involves a larger lump sum payment once a year, rather than paying a smaller amount on a monthly basis.

If you typically see a large true-up bill from PG&E’s annual NEM true-up for your delivery charges, you’d likely see a significant true-up bill from VCE. Some customers don’t mind this, while others prefer to spread payments out over the year.

If you see negative numbers for both your net generation and net usage, this indicates that you have generated more electricity than you used that billing period.

Your consumption is your total electric usage for the billing cycle. Your net generation is the amount of electricity that your NEM system delivers to the grid and your net usage is your net electricity usage from the grid.

The net usage is the net electricity usage for the billing period. It is the consumption minus the positive net generation. Your charges are based on your net usage.
Net usage= Consumption – Net Generation (positive)

In the example below, the net usage = 431.78 – 444.237 kWh

The net generation is the amount of electricity that your system is putting back onto the grid during the billing period.

The rollover credit balance is your calculated cash-out from the previous February cash-out period. If your cash-out value was less than $100, this will stay on your account and can be used for future monthly charges. If your cash-out value was greater than or equal to $100, this will only stay on your account until your check has been sent.

The baseline allowance applies to customers on the following rates: the Tiered Rate Plan (E-1), the Time-of-Use (Peak Pricing 4 – 9 p.m. Every Day) E-TOU-C, and those receiving PG&E gas service.

Energy used within the baseline allowance amount is billed at the lowest price.

The baseline credit ensures that you are paying (or being credited at) the lowest price for energy used within the baseline allowance.

All VCE customers receive the generation credit from PG&E since they are no longer providing you with electric generation service. This credit is what PG&E would have charged you for electricity that you use. VCE now provides the generation service. NEM customers receive credit for surplus generation with VCE that show up on the VCE page of the bill as the “NEM Balance”. This NEM balance tracks your credits each month for any overgeneration your NEM system produces.

Yes, you keep your annual true-up with PG&E for your electric delivery charges. Please refer to PG&E for more information on their NEM services.

You can find your PG&E estimated annual true-up charges on the first or second page of your bill. As a VCE customer, these estimated true-up charges will only include delivery and transmission charges.

VCE’s February cash-out/ true-up period is when we pay customers for their surplus generation throughout the year. You can find your VCE credits on the VCE page of your bill listed as the “NEM Balance”. During the February cash-out period, any retail credits will be converted to your cash-out value, which depends on your NEM program with VCE. As a Standard VCE NEM customer, your surplus generation in kWh will be multiplied by the wholesale or Net Surplus Compensation (NSC) rate (PDF) for electricity to find your cash-out value. The NSC rate is typically about 3-5 cents per kWh.

On the first page of your bill, you may see the following table, which includes an estimate of your PG&E true-up.

On the second page of your bill, you may see the following tables, which track your monthly PG&E charges/ credits and provide an estimate of your charges at true-up.

On the VCE page of your bill, you will see the NEM Balance, which tracks your retail credits/ debits for net generation or net usage.

There is a minimum delivery fee to be interconnected to the grid. This fee is typically about $10/ month for the average residential NEM customer and is assessed on the PG&E delivery portion of your bill.

Delivery and transmission charges are based on your usage in kWh. Net generators that do not have any net usage may only be charged the minimum delivery fees for being connected to the grid.

No, the VCE NEM balance credits will only be used to cover VCE generation charges.

Yes, you will receive NEM credits at the retail rate from PG&E and VCE when you net generate in a billing cycle. These credits are used to cover future monthly charges. Your annual cash-out is calculated based on your over generation in kWh, so your annual cash-out will only come from VCE.

If your cash-out value with VCE is less than $100, the balance will stay on your bill as the Rollover Credit Balance.

Alternatively, this may be due to a time-of-use rate schedule. You may have overgenerated during peak periods when electricity was more expensive, but you were a net consumer in total. This would result in you accruing NEM credits throughout the year, but not being eligible for the annual cash-out since you did not have any surplus generation. You can reach out to us at 1 (855) 699-8232 and we can review your bill in more detail.

We are aware of an option to make a one-time request to change your true-up month with PG&E. In addition, any time there is a significant change to your service, a true-up of your NEM charges will be triggered and your true-up month will be changed. Please reach out to PG&E’s solar hotline at 1 (877) 743-4112 with any questions.

The retail rate is the rate that you are charged for electricity. Every month, NEM customers receive credits for over generation at this same retail rate. The wholesale rate is the Net Surplus Compensation (NSC) rate, which is the same rate that PG&E pays out for surplus generation. The NSC rate (PDF) is based on the market rate for energy and is updated every month.

As a Standard VCE NEM customer, your surplus generation of kWh + $0.01/kWh is multiplied by the NSC to calculate your cash-out payment. The cash-out payment is not affected by your service level.

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.

Your credit is based on the applicable TOU period-specific rates/charges. You will be credited based on the rate when you over-generate and you will be charged based on the rate when you consume electricity.

For the annual cash-out, Standard VCE NEM customers will have their surplus kWh (generation) multiplied by the NSC rate. CARE/FERA VCE NEM and Legacy Municipal NEM customers will be paid the dollar amount listed as credit.

At the February cash-out for Standard VCE NEM customers, the surplus generation of kWh is multiplied by the net surplus compensation rate regardless of service level.

During regular months, the surplus generation is saved as a credit at the retail rate (the rate you are charged for power by VCE), including the extra premium for UltraGreen.

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 15, 2023, and for customers who have completed 20 years on the NEM 1.0 or 2.0 tariff.

PG&E is planning to implement its 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.

VCE 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.

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.

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.