Net Energy Metering / Net Metering / NEM is an agreement between the solar energy system owner (you) and the utility company. The utility company agrees to provide credits for the extra electricity that you send to the grid — over-produced energy that you don’t use — in exchange for energy drawn from the grid at another time. Net Metering is changing throughout California, and San Diego Gas & Electric customers are entering a new era for residential and commercial solar.
The second generation of Net Metering promotes grid-connected solar installations by preserving near-retail rates for exchanging energy with the utility. As the utilities adapt to the new energy resources and shifting demand, rates are expected to climb and rate structures will change. NEM 2.0 also includes several important consumer protections, through grandfathering, which ensure that solar customers like you can preserve the value of your investment.