Net Energy Metering (NEM) was mandated by state legislation in the mid-2000s, which allows for solar customers to remain fully interconnected to the electric or power grid and receive a retail credit, kWh for kWh, on their entire bill for all excess energy sent back to the grid. The legislation mandated that we offer retail NEM up to 5 percent (30 MW) of our peak aggregate load, a mandate Anaheim Public Utilities met in 2019.
To continue the adoption of solar, Anaheim will be transitioning to NEM 2.0 beginning for all new solar installations approved by the City’s Planning and Building Department after December 31, 2020. Customers that install solar on or prior to December 31, 2020 may remain on NEM 1.0 until the customer replaces their solar system, or closes their electric account where the system is located. NEM 2.0 highlights are:
Excess energy sent back to the grid will be paid to you as a credit on your current bill calculated by multiplying the Annual Cash Compensation (ACC) rate and a Time of Delivery Factor. See below for additional information regarding this calculation.
As all customer generated energy received by the grid is compensated at the ACC, there is no longer any banking of excess energy received by Anaheim under NEM 2.0.
Customers that have the building permit for their solar system approved by the Planning and Building Department on or prior to December 31, 2020 will be grandfathered for the life of the solar PV system or until the account holder closes the account where the system is located. This means the project is complete, signed off and approved by the Planning and Building Department on or prior to December 31, 2020. This date is not a building permit issuance deadline date by the Planning and Building Department.