Solar Policy
California has had three major versions of its compensation and incentive policy for solar systems on its grid.
NEM 1.0
- Applied to customers enrolled before July 1st, 2017
- No interconnection fee and monthly connection fee of $1.
- Compensation for exported solar at retail rates
NEM 2.0
- Interconnection fee of $75
- Monthly connection fee $10–$20
- Compensation for exported solar at retail rates
NEM 3.0
- Monthly connection fee of $8/kW
- Compensation for exported solar at avoided cost to the utility
Non-Bypassable Charges
These are non-volumetric charges on utility bills that fund programs like energy efficiency, lifeline tariffs, and nuclear decommissioning.
Net Surplus Compensation
The net surplus is the net amount of excess generation sold to the grid. It is usually summed up at the end of the year. The net surplus compensation is the money paid to the consumer based on the amount of net surplus and the utilities rate for the energy.