Net Energy Metering

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Learn about proposed changes to Net Energy Metering:

NEM Successor Tariff


On February 3, 2022, the California Public Utilities Commission (CPUC) requested additional time to analyze the record and consider revisions to the proposed decision based on party comments, effectively putting the decision on hold.

On May 9, 2022, the CPUC issued a Ruling asking for comments on three specific portions of the previously issued Proposed Decision: the export compensation glide path approach, non-bypassable charges, and community solar.

On June 10, 2022, RCEA and three other CCAs submitted opening comments responding to the Ruling. These comments are summarized below.

Reply comments, which respond to the opening comments filed by other parties, are due July 1, 2022.

The earliest the CPUC is anticipated to arrive at a successor tariff decision is late July.

In August 2020, the California Public Utilities Commission (CPUC) initiated a proceeding to develop a successor NEM tariff (a.k.a. “NEM 3.0”) pursuant to the requirements of Assembly Bill 327 passed in 2013.

On December 13th 2021, the CPUC issued a Proposed Decision explaining what the new tariff provisions would be. The Commission is expected to vote on this Proposed Decision on January 27th. If this Proposed Decision passes as written, the current NEM 2.0 tariff will sunset in late May 2022 (an estimated date of May 27th).

While the sunset could change if the Proposed Decision is revised prior to the CPUC’s vote, the current guidance for customers interested in installing rooftop solar is to submit their interconnection applications as soon as possible if they wish to enroll in the current tariff. If the interconnection application is submitted prior to the sunset date, the customer can stay on the NEM 2.0 tariff for 15 years from their interconnection date.

For more information on the successor tariff, please read the customer explanation that the CPUC developed here.

To subscribe for updates and to  submit comments on the successor tariff to the CPUC, please click here.

Watch Canary Media’s Debate on how to fix rooftop solar policy in California here.

Background - AB1139

In February 2021, the Legislature introduced Assembly Bill 1139, which sought to expedite the current CPUC proceeding. Furthermore, if the accelerated timeline for the CPUC to establish a new NEM tariff was not met, the bill required specific provisions for the replacement tariff including additional interconnection fees, monthly fixed charges, NEM credits based on wholesale instead of retail rates, and a series of other provisions not favored by supporters of the current NEM 2.0 framework.

RCEA’s Board voted to oppose the legislation at its May 2021 Board meeting, deciding that the bill would harm current NEM customers and disincentivize new enrollment in the NEM program.

As of June 2021, this bill was not voted out of committee and is no longer active.

Net Energy Metering for Residential Customers

RCEA is dedicated to supporting customers like you to generate your own renewable energy. As a NEM customer with RCEA you buy energy at lower rates and sell energy back to the grid at higher rates.


New solar customers will be automatically enrolled into the program. When you complete the solar interconnection agreement with PG&E, you will be enrolled with RCEA.


How Does the Program Work?

Net Generator

If you generate more electricity than you use, each month RCEA will credit you at your retail generation rate plus an additional $0.01/kWh bonus. Those surplus credits will be rolled over to the next month for you to use later in the year or cash out in May.


Net Consumer

If you use more electricity than you produce you will be charged for the difference at slightly lower rates than PG&E. See for rate details.


Monthly Billing

RCEA’s generation charges are billed monthly. This means that there will not be a large bill at the end of the year like with PG&E . Your delivery charges are still billed through PG&E, and will continue to be billed on a yearly cycle.

View our “Year-at-a-Glance” RCEA / PG&E bill comparison” for customers that consume more energy than they produce.

Net Energy Metering rates comparison for RCEA and PG&E

Click on image for a full-sized view


Rate Information

See our Rate Information (PDF) for grid-connected customers with solar or other renewable energy systems. As a NEM customer you can be on any rate schedule you would have been on otherwise.


End of the Year Payout

In May, RCEA will automatically send out a check to all NEM customers with a credit of $100 or more in their credit balance ending Mar 31 with a cap of $5,000. If your credit exceeds $5,000 the excess will be rolled over to the following bill cycle.

If the credit amount is below $100, those credits will be rolled over to the following billing cycle for you to use later.


Closing a NEM Account

If you have a credit when you close your NEM account, RCEA will send you a check for the balance. Please allow for processing time. If you are moving, please inform us of your new address to ensure you receive your payment.


Opt up to 100% renewable energy with REpower Plus!

For a $0.01/kWh premium, upgrading to 100% renewable energy ensures that you are always using 100% renewable energy even if the sun isn’t shining. If you are a net generator you will earn an extra $0.01/kWh for the energy you produce.

PG&E and RCEA rate comparison chart


The following NEM Sample Bill provides an explanation of the RCEA and PG&E charges for NEM customers.

View or download the Bill Sample (PDF)

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