Assembly Bill 920 authorizes utilities to compensate homeowners for excess power generation.
Many San Diego homeowners would like to know, if they install new solar panels and their San Diego Panel system generates more power than they need what happens to the excess power. Good news!
Assembly Bill 920 authorizes utilities to compensate customers through a plan called Net Energy Metering (NEM) for excess generation at the end of their true-up period. The compensation price, similar to wholesale market price that the utility pays other generators is currently averaging just under 4 cents per kilowatt hour.
SDG&E will multiply the number of excess kilowatt hours you have accumulated by the average price applicable to your true-up month. What is the True-Up Period?
Your true-up period is typically every 12 months. Your account is reconciled based on the number of kilowatts that you have produced and return to the grid versus the number of kilowatts that you have used. Any other adjustments, fees or payments that have been made are also taken into account.
At the end of your true-up period, If the number of kilowatt hours that your solar panels have returned to the grid exceeds the numbers of kilowatt hours you have used, you will be paid for the difference.