[quote=LAAFTERHOURS][quote=skerzz]When you are under a net energy metering (“NEM”) agreement, SDGE will net your monthly over/under production on an annual basis and bill or refund on the net amount. ex. If I use 1,000kWh more than I produce Jan – May, and produce 900kWh more than I use June – December, I’ll pay SDGE for the 100kWh at the annual true-up period. I believe there’s a cap on the amount of systems that can be installed under the current NEM agreement, so these rules may be changing soon (my understanding is that the new NEM agreement will not be as favorable as the current NEM).[/quote]
best site for all of these answers is solarpaneltalk.com. Based upon a thread in that forum, the NEM will run out middle of 2016 at its current install rate. The rate you get at the end of a 12 month period is something like 35 cents so yes better than tier 1 but not enough to make up for oversizing considerably.[/quote]
Per SDGE, the rate paid for excess is somewhere around .04 per kWh. Tier 1 rates are .17 per kWh. Cost of solar per kWh is somewhere in the range of .06 – .07 per kwh in Southern CA, so it’s not economical to pay for a system that overproduces.
“Compensation is made up of two components, one for the wholesale value of the commodity, and one for the Renewable Energy Credit (REC). The wholesale compensation price is a rolling average based on the utility’s Default Load Aggregation Point (DLAP) price from 7 a.m. to 5 p.m. This is a wholesale market price that the utility pays other generators. It’s currently averaging just under 4 cents per kWh. Your account will automatically be credited for the wholesale value should there be any excess generation after your annual true-up. We’ll multiply the number of excess kWh you have by the average price applicable to your true-up month. See true-up table below.”
