Net Energy Metering for Solar Customers

If you have solar panels, receive credits for the excess energy you send to the grid.

What You’ll Get

  • Credit Accrual and Premium Payment Rates — If you generate more electricity than you use during a month, you’ll receive a credit for excess generation at full retail rates that will be automatically applied toward future electricity usage. At the end of the annual NEM cycle (April through March), net exports will be cashed out at the Net Surplus Compensation (NSC) rate plus $0.02 per kWh, up to a $5,000 annual limit.
  • Cash Out Annually — Cash-out payments will be automatically processed annually. For payment amounts greater than $200, you will receive a check. Payments of $200 or less will appear on your monthly statement as a bill credit.
  • No Large Annual Payment — MCE credits and charges NEM customers monthly, so you won’t end up with a year’s worth of generation charges at your true-up.
MCE’s NEM Program PG&E’s NEM Program
NEM credit accrual
Credits accrue at retail rates and are applied toward your monthly bills during the year; any remaining retail credits are zeroed out at cash-out.
Credits accrue at retail rates and are applied toward your true-up bill annually; any remaining retail credits are zeroed out at the true-up.
Annual surplus generation
Paid out at the NSC rate plus $0.02 per kWh (up to $5,000) at MCE’s annual cash-out each spring.
Paid out at the NSC rate at true-up.
Occurs monthly; retail credits for excess generation are applied toward your balance as they accumulate.
Occurs annually (except for minimum delivery charges); all retail credits are applied toward any outstanding balance at true-up.
Renewable energy service from the grid
60% or 100% renewable energy service when you use energy from the grid.
38% renewable energy service when you use energy from the grid.

How It Works

Your meter tracks the electricity imported from the grid, along with solar production exported, for each monthly billing cycle. If the cost of your net exports exceeds your net usage costs for that month, you receive a credit at full retail value, which will be applied to future usage costs within the same 12-month cycle (April through March).

Each spring, at the end of the annual cash-out cycle, if you’ve produced more electricity than you’ve used, you’ll be eligible for a payment based on your surplus electricity at the wholesale compensation rate plus $0.02 per kWh. Eligible balances for active accounts over $200 will automatically be issued checks to the mailing address they have on record (subject to a maximum of $5,000 per service agreement). Eligible balances of $200 or less will appear as a bill credit on a subsequent PG&E bill.

NEM Bill Sample

Account Number

Your PG&E-assigned number identifies your account. Please have the first 10 digits on hand if you call to make changes to your account.

Current PG&E Electric Monthly Charges

PG&E’s Minimum Delivery Charge for Net Energy Metering customers, set by the California Public Utilities Commission. This charge may be deducted at your annual PG&E delivery true-up if your total NEM charges before taxes are greater than your total electric minimum delivery charges.

MCE Electric Generation Charges

MCE’s charge for the generation of electricity after accounting for your solar panels’ monthly generation. This includes the cost of electricity to match your home or business energy needs beyond your panels’ production. This fee replaces a fee that PG&E would have collected had it provided your generation service. This is not an additional charge.

Your Net Energy Metering Account Summary

This is your most recently updated year-to-date PG&E charges for electricity delivery after accounting for your solar panels’ productivity. It is what you are expected to owe PG&E at your annual true-up.

How to Enroll

Current NEM customers

All solar customers joining MCE will automatically be enrolled into MCE’s NEM program — no action is necessary.

Solar Billing Plan (SBP) customers

Solar customers whose applications were filed after April 14, 2023, will receive service through MCE’s Solar Billing Plan. Additionally, customers who have had their solar system’s 20-year NEM1 legacy period expire will also be transitioned to SBP.  

For more information on getting a solar system started, visit

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Frequently Asked Questions

As a NEM customer, you’ll be credited for production of electricity at your applicable retail rates each month. Excess generation credits will be carried forward on your MCE billing statement and automatically applied to future generation charges (within the annual period). MCE charges NEM customers for electricity usage on a monthly basis after applying any accrued generation credits; this differs from PG&E’s true-up process in which charges or credits are reconciled annually.

Following your April billing cycle, MCE will conduct the annual cash-out. At that time, your retail credits will be reset to $0 and MCE will determine if you’re eligible for a cash-out payment. If you produce more electricity than you consume within the annual period, you’ll be automatically compensated for your surplus generation at the Net Surplus Compensation rate plus $0.02 per kWh. Cash-out payments of $200 or less will be applied as a bill credit, while payments over $200 will be automatically sent in the form of a check. Cash-outs are subject to an annual $5,000 cap per service agreement.

No. You are not being double-billed. The monthly MCE charges reflect the electricity generation costs associated with energy consumed from the grid. Your PG&E true-up reflects electricity delivery costs for services like line maintenance, transmission, and distribution. If you were not an MCE customer, BOTH electricity generation and electricity delivery charges would have been billed at true-up, resulting in a large lump sum due.

Your MCE cash-out is separate from your PG&E true-up. MCE compensates you annually based on your net surplus generation at the end of your 12-month cash-out cycle ending in April — regardless of your true-up date. Please also note that your PG&E true-up reflects charges/credits associated with electric delivery — not the energy itself — and you are compensated only for the value of your exported energy. PG&E will not compensate you for excess electricity delivery credits.

If you are an existing solar customer in a new MCE service area, your account will be enrolled with MCE service to correspond with your PG&E true-up date unless you choose to opt out and remain a PG&E bundled customer.

When you switch to MCE, your NEM billing will be completed this way:

  • PG&E will continue to charge you for all electricity delivery (non-generation) services. “Minimum Bill Charges” and gas charges will be due on your monthly statements. Other electricity delivery charges (such as transmission, public purpose programs, conservation incentive adjustment, etc.) will be billed annually via PG&E’s annual true-up process, as described in your monthly Net Metering Statement.
  • MCE generation charges will also be settled in your monthly bill rather than in PG&E’s annual true-up process. If credits for generation are earned, these will roll over to cover future generation charges. Your current MCE NEM credit balance will be noted at the bottom of the MCE Electric Generation charges page of your bill.

For further information about how MCE administers credits and charges for the generation portion of your bill, please contact our customer care team at (888) 632-3674, 9 am–5 pm, Monday–Friday.

MCE provides a higher compensation rate for excess energy produced each year. If you generate more electricity than you use, MCE cashes out your net generation at a significantly higher rate compared with PG&E — the NSC rate plus $0.02/kWh (almost 50% more).

In addition to the cash-out program benefits, MCE provides lower rates for net generation charges, while offering more renewable energy to your home. If you produce less electricity than you use, you can ensure that you will save a little money and your electricity usage is sourced from 60% or 100% renewable resources.

Many of MCE’s NEM customers utilize MCE’s Deep Green 100% renewable energy option for their remaining electricity usage so that all of their electricity is generated from renewable sources. Solar customers enrolled in MCE’s Deep Green service will also receive an additional $0.01/kWh in NEM credits for excess energy produced.

All solar customers are eligible for MCE’s NEM/SBP program.

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