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).
