Solar Billing Plan
In December of 2022, the California Public Utilities Commission decided that the Solar Billing Plan (also known as the Net Billing Tariff) would replace the Net Energy Metering 2.0 tariff.
Frequently Asked Questions
What is the Solar Billing Plan?
The Solar Billing Plan is how 3CE bills customers who have solar, wind, or another on-site energy generation system.
The California Public Utilities Commission in December 2022 decided that the Solar Billing Plan would succeed the NEM 2.0 tariff.
3CE’s Policy Board adopted our agency’s Solar Billing Plan in February of 2024.
Why is the Solar Billing Plan also called the Net Billing Tariff?
“Net Billing Tariff” is the official name used by the CPUC. We call it the Solar Billing Plan to match the terminology used by PG&E and SCE, the Investor-Owned Utilities (IOUs) that serve the Central Coast.
Who is on the Solar Billing Plan?
As of April 15, 2023, any new on-site generation interconnection agreements will be on the Solar Billing Plan.
o Residential Solar Billing Plan enrollment launched in June of 2024
o Qualifying commercial customers will enroll in the plan in 2026
Customers currently on NEM 1.0 or NEM 2.0 will stay on those tariffs until the end of their 20-year period on the tariff. After that, they’ll transition to the Solar Billing Plan.
How does billing work on the Solar Billing Plan?
Charges for energy consumed will be calculated using 3CE’s generation rates.
Export credits for energy sent to the grid will be calculated using 3CE Energy Export Credit hourly rates and used to offset generation charges in the current or forward-looking months.
Energy Export credit hourly Rates are based on the Avoided Cost Calculator, which is updated by the California Public Utilities Commission.
Each December, customers will be trued-up. The customer’s “Energy Export Credit Adjustment” will be added to their “Export Credit Balance.” Any remaining export credits will offset generation charges from 3CE within the same true-up period.
What is 3CE’s Energy Export Credit?
Click for: PG&E Hourly Prices / SCE Hourly Prices
What is 3CE’s Low Income Adder?
Customers enrolled in the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs receive additional compensation.
This Low-Income Adder is a flat $0.00396-per-kilowatt-hour addition to the Energy Export Credit.
The Low-Income Adder will be applied for nine years and will appear as a separate line item on the bill.
This credit rolls over at the time of true-up.
When is my annual true-up?
All 3CE customers true-up in December for energy generation services.
Customers have two true-ups each year, one with the investor-owned utility (PG&E or SCE) for just transmission and distribution services and one with 3CE for energy generation services only.
When do I receive my Net Surplus Compensation?
At the time of true-up, customers receive Net Surplus Compensation if they generated more energy than they used throughout the entire true-up period.
The customer’s total excess generation in kilowatt hours is multiplied by 3CE’s Net Surplus Compensation Rate.
3CE’s Net Surplus Compensation rate is the average market rate for electricity.
The Net Surplus Compensation rate is calculated in December each year and will be available on 3CE’s website.
How do I receive Net Surplus Compensation?
Net Surplus Compensation becomes a credit on customer bills that will automatically be used towards future charges from 3CE.
Residential customers receiving at least $200 in Net Surplus Compensation can request the balance in the form of a check within 45 days of receiving their true-up statement.
True-up statements are available on bills in January or February.
Access the check request form here.
What is Net Energy Metering 1.0’s grandfather period?
Customers on Net Energy Metering 1.0 have 20 years from the time their interconnection agreement was approved to remain on Net Energy Metering 1.0.
Once your grandfather period on Net Energy Metering 1.0 ends, your account will move directly to the Solar Billing Plan (once it is available).
What is Net Energy Metering 2.0’s grandfather period?
Customers on Net Energy Metering 2.0 have 20 years from the time their interconnection agreement was approved to be on Net Energy Metering 2.0.
Once your grandfather period on Net Energy Metering 2.0 ends, your account will move directly to the Solar Billing Plan (once it is available).
Accounts who have already moved from Net Energy Metering 1.0 to Net Energy Metering 2.0 will transition to the Solar Billing Plan (once it is available). A new grandfathering period did not begin for these accounts.
Why did 3CE adopt the Solar Billing Plan?
3CE adopted the Solar Billing Plan to promote affordability, increase reliability, and encourage battery storage.
Should I leave NEM 1.0 or NEM 2.0 early to receive a higher incentive through the Residential Battery Rebate Program?
Customers who choose to leave NEM 1.0/2.0 will be permanently transitioned to the Solar Billing Plan for both energy generation and energy transmission and distribution services.
Due to the unique and varied generation needs of each customer, 3CE cannot provide specific advice on this topic. We recommend that you compare the plans and confer with your solar installer.