Your home's solar or renewable energy system is designed to supply your energy needs. PG&E automatically supplies additional energy to you, as needed. Surplus energy is returned to the energy grid when your system creates more energy than your home can use.
If you are on the NEM1 or NEM2 tariff, PG&E pays you market value for any balance of surplus energy that you have at the end of your 12-month billing cycle. The compensation received is called Net Surplus Compensation (NSC). The NSC rate is based on a 12-month average of the market rate for energy. The rate is about two to four cents per kilowatt hour (kWh). As an NEM1 or NEM2 customer, you are enrolled in this program automatically. If you qualify, the NSC you earn appears on your annual NEM True-Up statement.
For more information about Net Surplus Compensation, watch the video on our FAQ page.