Solar Billing Plan
CleanPowerSF is proposing changes to its program for compensating customers with rooftop solar and other eligible renewable energy systems, also known as Net Energy Metering (NEM). The new program would be called the Solar Billing Plan.
In summary, our proposed Solar Billing Plan:
Acknowledges a new reality for renewable energy in California.
Changes the value of renewable power more in line with the value it has to other CleanPowerSF ratepayers.
Impacts only about 10% of CleanPowerSF solar customers the first year it goes into effect (if approved).
Why a Solar Billing Plan?
California has worked hard to meet its ambitious clean energy goals. Now the state has times when there is too much solar power during the middle of the day that ends up going unused. When the sun sets and solar production declines, California still relies on dirty fossil fuels to supply electricity.
That is why the California Public Utilities Commission required investor-owned utilities like PG&E in 2022 to update their solar programs. Net Energy Metering programs, also known as NEM 1.0 and NEM 2.0, to reflect this new reality. NEM incentivizes customers to send solar energy to the grid during the day when, more often, it doesn’t need it. Many energy providers across California now offer Solar Billing Plans.
CleanPowerSF is proposing a Solar Billing Plan for customer-owned renewable energy systems, and we have taken the time to get it right. We aim to align the rate at which we pay for clean power to what it would cost to buy that electricity elsewhere. We want to promote fairness for all our CleanPowerSF ratepayers. All together, we want to do our part to help San Francisco and California continue to meet its climate and clean energy goals.
Who's Affected by the Solar Billing Plan?
Most CleanPowerSF customers with a rooftop solar system will not be affected by our Solar Billing Plan in the first year. In fact, just about 10 percent of CleanPowerSF solar customers would be enrolled into the plan the first year it goes into effect (if approved).
CleanPowerSF’s proposed Solar Billing Plan would impact you if you fall under one of the following three categories:
You completed your application with PG&E to interconnect your solar system to the local grid on or after April 15, 2023
You have received service under NEM for 20 years
You modified an existing rooftop solar system resulting in a transition to PG&E’s Solar Billing Plan
CleanPowerSF’s Solar Billing Plan
We developed the Solar Billing Plan through a comprehensive engagement process with customers, advocates, and industry representatives. We have now incorporated feedback received into our updated proposal. Notably, our revised proposal now includes energy export credit values based on CleanPowerSF’s retail energy rates.
Key elements of the proposed Solar Billing Plan include:
Updated compensation for the energy you send to the grid: The local renewable energy you send to the grid helps CleanPowerSF avoid certain costs as an electricity provider. We are proposing to pay at the retail rate less the percentage of that rate comprised of administrative and operating costs, as determined in CleanPowerSF’s most recent Cost of Service Study. The 2027 Cost of Service study determined fixed costs comprise approximately 15 percent of residential customer costs and 11 percent of non-residential customer costs. Thus, the Export Credit Rate for Residential and non-Residential customers will be approximately 85 percent and 89 percent, respectively.
Net Surplus Compensation: Under CleanPowerSF’s NEM Tariff, a participating customers’ usage is “trued-up” each year to determine if they generated more energy than they consumed. In this process, the customer’s total energy usage from the grid is compared to their total energy sent to the grid over the past year. If exports exceed imports, the customer produced more than they consumed and the excess is considered net surplus generation. Under the NEM Tariff, any monthly bill credits that the customer earned at the retail rate that accumulated over the previous year are zeroed out. If the customer produced more than they consumed, CleanPowerSF compensates the customer for each kilowatt-hour of net surplus generation at the Net Surplus Compensation rate of $0.0893/kilowatt-hour.
Because the proposed CleanPowerSF Net Billing Tariff Export Credits are intended to compensate customers for CleanPowerSF’s avoided energy procurement costs over the course of the year, the Tariff would allow customers to retain any monthly credits they earned but did not use by the end of the True Up Period. CleanPowerSF’s current Net Billing Tariff proposal, which bases export credits on a percentage of the retail rate, eliminates the need for Net Surplus Compensation since customers will be compensated for the renewable value of their exports at the time of the export.
Maximize Your Savings with Solar Billing Plan
To maximize your savings on the proposed Solar Billing Plan, power your life, not the grid.
When you use your renewable energy at home, you avoid paying CleanPowerSF to supply and PG&E to deliver that electricity. That is the best way to maximize your savings.
You can do this several ways:
If you have solar, shift your energy usage to the day. This way, your rooftop solar system runs the dishwasher, charges your electric vehicle, or heats your water.
If you have a battery for your solar, you can store any electricity you can’t use during the day for use in the evening, rather than sending it to the grid. This will help you avoid higher evening electricity supply and delivery rates, maximizing the value of your home renewable energy system.
Here is how else you can maximize:
CleanPowerSF’s Electrify Your Home Program
Transitioning your gas appliances to electric is one of the best ways to increase the value of your solar energy and our new Electrify Your Home program is here to help. The program offers $50 monthly bill credits when you upgrade your gas appliances to new electric alternatives. If you’re unsure where to start, replacing your gas water heater is a great starting point. Today’s heat pump water heaters use up to seven times less energy than gas water heaters and are smart enough to learn your household’s hot water patterns and automatically shift energy use to off-peak hours, helping you get the most value out of your solar power.
Customers who upgrade to a heat pump water heater can receive a $50 credit every month for two years, a $1,200 value. Click here to learn more about our Electrify Your Home program.
In Development: Battery Storage Incentives
Adding battery storage to your home renewable energy system unlocks more savings under the proposed plan. With storage, you can save your electricity to use later when it’s more valuable, particularly from 4:00 pm to 9:00 pm.
We are currently developing battery storage incentives, which will help pay for the upfront cost of a battery. Stay tuned for updates.
Upcoming Outreach and Key Dates
See below for additional opportunities and other key dates. *
September 8, 2026: The SFPUC Commission will consider the proposed Solar Billing Plan.
* Dates subject to change
Past Engagement
June 22, 2026
January 27, 2026
The SFPUC Commission meeting on 1/27 has now passed and the public comment period is now closed. The proposed Solar Billing Plan item was tabled.
November 4, 2025
The Rate Fairness Board reviewed the Solar Billing Plan.
April 10, 2024
CleanPowerSF provided a briefing to the Rate Fairness Board on Net Energy Metering, the Solar Billing Plan and our intention to consider a successor to CleanPowerSF’s NEM Tariff.
November 2024
A listening session between solar industry leaders and CleanPowerSF staff.
February 2025
CleanPowerSF hosted a public webinar with industry experts on the state of rooftop solar in California called the What’s Next for Rooftop Solar in California (Webinar)?
June 25, 2025
CleanPowerSF hosted a workshop on the first draft of the proposed Solar Billing Plan for solar industry leaders, environmental advocates, CleanPowerSF customers, and other members of the public. Watch a recording of the CleanPowerSF Solar Workshop.
June – July 2025
Written public comment on the first draft of the proposed Solar Billing Plan.
September 22, 2025
The Rate Fairness Board reviewed the updated proposal on the Solar Billing Plan.
Presentation to San Francisco Commission on the Environment