Solar Billing Plan

CleanPowerSF is implementing a new rooftop solar tariff for customers served under PG&E’s Solar Billing Plan.

CleanPowerSF’s Solar Billing Plan:

  • Compensates solar exports at 85% of CleanPowerSF’s E-ELEC rate for residential customers and 89% of commercial customers’ retail rate.

  • Applies to customers served under PG&E’s Solar Billing Plan:

    • Check your PG&E bill to see if you are identified as a Net Energy Metering (NEM) customer or a Solar Billing Plan (SBP) customer

    • Customers whose interconnection applications were received after April 14, 2023 or who have systems installed more than 20 years ago will default to SBP service.

  • Prices solar exports substantially higher than PG&E on average, especially during mid-day when most rooftop solar customers are exporting.

    • Is approved to take effect in May 2027.

Installing a rooftop solar panel

Why a Solar Billing Plan?

California has worked hard to meet its ambitious clean energy goals – so hard that there are times when there is more solar energy generated than can be used. But, when the sun sets and solar production dwindles, California relies on fossil fuels to supply electricity.

That is one reason why the California Public Utilities Commission required investor-owned utilities like PG&E to update their solar programs in 2022. Net Energy Metering programs, also known as NEM 1.0 and NEM 2.0, incentivized customers to sell their excess solar energy to the grid during the day, even when the grid didn’t need it . Solar Billing Plans encourage customers to store their excess energy and use it during the evening peak, when electricity use rates are highest.

CleanPowerSF’s Solar Billing Plan is a step in this direction. By aligning the rate at which we compensate for rooftop solar exports with our cost to purchase that electricity elsewhere, customers can be motivated to use more of the energy they generate on-site. We aim to deliver equitable service to every CleanPowerSF customer, and do our part to help San Francisco and California reach our bold clean energy and climate goals.

Worker inspecting rooftop solar panels at a commercial building.

Who's Affected by the Solar Billing Plan?

CleanPowerSF’s Solar Billing Plan will affect you if:

  • 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; or

  • You modified an existing rooftop solar system resulting in a transition to PG&E’s 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 11 percent of CleanPowerSF solar customers would be enrolled into the plan the first year it goes into effect.

CleanPowerSF’s Solar Billing Plan Features

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, but CleanPowerSF does not see savings from rooftop solar for its administrative costs. SBP customers will be compensated 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: CleanPowerSF NEM customers are “trued-up” each year to determine if they generated more energy than they consumed. 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.

For customers served under the Solar Billing Plan, customers instead retain the monthly credits they earned but did not use by the end of the True Up Period. This 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.

Battery Storage Program Opens November 2

Are you thinking about adding rooftop solar to your home, or want to improve the performance of your current system? Batteries, paired with your solar panels, can boost your electricity savings and increase the self-sufficiency of your home. On Monday, November 2, CleanPowerSF will begin accepting applications for its new Residential Battery Storage Program. If you qualify, you can receive up to $3,750 (or more for income qualified customers) to install a battery.

Past Engagement

September 8, 2026

June 22, 2026

The Rate Fairness Board reviewed the updated proposal on the Solar Billing Plan.

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

The SFPUC Commission approved updated proposal on the Solar Billing Plan.

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

Presentation to San Francisco Commission on the Environment

Resources