Frequently Asked Questions

The California Public Utilities Commission (CPUC) approved the Net Billing Tariff — also known as the Solar Billing Plan for SCE customers — on December 15, 2022. The Solar Billing Plan established by CPUC’s approval became effective on April 15, 2023.

The CPUC’s approval of the Solar Billing Plan brings major changes to previous Net Energy Metering policies. This program is an update from the previous NEM 2.0 program, and the rate at which both residential and commercial solar customers are compensated for the excess energy exported to the grid has changed.

The key takeaway is the amount a ratepayer is credited per kWh for feeding electricity to the grid will be reduced by about 75% when compared to the previous NEM 2.0 program. While solar projects still have value under the Solar Billing Plan, they likely need to be sized or configured differently or possibly in combination with battery storage. Please see SCE’s Solar Billing Plan updates here.

Note: There is no impact to existing NEM customers enrolled under NEM 1.0 or NEM 2.0. These customers will move to new billing rates under the Solar Billing Plan 20 years after their interconnection (also known as Permission to Operate, or PTO) date.

New solar projects implemented under SCE’s Solar Billing Plan were initially billed under NEM 2.0 rates until SCE updated its billing system to reflect the new rates. The CPUC gave SCE and the other investor-owned utilities time to update their billing systems accordingly, and in the meantime, customers enrolled in the Solar Billing Plan were required to be billed under the previous Net Energy Metering (NEM) 2.0 rates. This also applies to DCE generation charges within DCE’s Solar Option Program, the equivalent to SCE’s Solar Billing Plan.

Following SCE’s implementation of billing for the Solar Billing Plan, customers enrolled in the Solar Billing Plan and DCE’s Solar Option Program will be charged for energy imported from the electric grid at the current DCE rate you are enrolled in and will receive bill credits at a set price per unit (kilowatt-hour) of electricity exported, based on the electricity’s value to the electric grid in each hour of the day. The price will usually be lower than what you pay for a kilowatt-hour of electricity.

Yes. DCE believes in a greener future and supports customers who already have or wish to have solar installed on their homes or businesses. DCE customers with solar panels or other eligible generating systems can participate in our solar programs parallel to SCE’s programs and receive bill credits and even cash back when their systems produce more energy than they use over a 12-month period. DCE will purchase the excess energy you produce at the same rate as SCE, according to the rates established by each program.

Yes, you are still able to offset your charges with excess generated energy. At the end of your relevant period (the month of May for most DCE solar customers), you will either receive a check or a bill. If you are a net consumer for that year, you will only receive one bill for energy consumption annually. If you are a net generator, DCE will compensate you for your Net Surplus Generation at the same rate as SCE. This allows you a full 12 months to net out any generation charges.

The City of Palm Springs has prioritized reducing greenhouse (GHG) emissions and chosen to have DCE automatically enroll every customer into DCE’s Carbon Free plan. You can stay green and make a bigger impact on the environment by remaining in DCE’s Carbon Free plan that is available at a small premium to SCE’s base rate. You also have the choice to purchase energy at a lower cost than what you now pay SCE with our Desert Saver plan. To opt-down to Desert Saver, visit DesertCommunityEnergy.org or call toll free (855) 357-9240 Monday through Friday between 8 A.M. and 5 P.M. PST. It only takes a few minutes to opt-down and save!

Net Surplus Energy is defined as any generation, measured in kWh, that exceeds total customer energy usage during the Relevant Period. DCE will also determine whether each customer has produced Net Surplus Energy over the course of the Relevant Period. If a customer has produced Net Surplus Energy, then DCE will credit such customer an amount not to exceed $10,000 that is equal to the current Net Surplus Compensation rate per kWh multiplied by the quantity of Net Surplus Energy produced by the customer during the Relevant Period. DCE’s Net Surplus Compensation Rate (NSCR) is the same as SCE’s and may only be adjusted by the DCE Board when rates are set. Customers will be able to provide input at DCE Board meetings.

No. The term for NEM 1.0 or NEM 2.0 stays with the solar system. For example, if you purchase a home in 2023 with an existing solar system with a Permission to Operate (PTO) date of July 1, 2017, that system will remain under NEM 2.0 until July 1, 2037. However, if you purchase a home or business with a solar system already enrolled in SCE’s Solar Billing Plan, your system will remain on the Solar Billing Plan and DCE’s parallel Solar Option Program.

If you are looking to install rooftop solar on your home or business after April 15, 2023, the solar installer you choose will assist you with enrolling in the SBP. Customers enrolled in SCE’s SBP will be moved onto one of SCE’s three Time-Of-Use (TOU) Rate Plans, based on which plan suits the customer’s energy needs best. With SCE’s Solar Billing Plan, the Time-Of-Use (TOU) rate plans offer lower prices while the sun is shining, and solar power is contributing to the grid. As is the case for NEM customers, customers enrolled in SCE’s SBP will automatically be enrolled in DCE’s parallel Solar Option Program. The TOU rate plan selected for SCE will also apply to DCE generation charges.

DCE’s solar programs are currently the same as SCE’s NEM 1.0, NEM 2.0, and Solar Billing Plan. DCE is paying you the exact same amount that SCE is paying for the power produced by your solar panels, depending on your program. DCE settles balances (charges and credits) for generation monthly, and in May, performs the annual true-up process of all its solar customer accounts. During this time, SCE will continue to calculate charges for delivery, transmission, and other services annually for those customers with an annual billing option. DCE solar credits cannot be applied to any SCE charges.

We consulted with local solar experts and discovered that the end of May is typically the time that most customers have saved up the most solar credits through the spring before using them to offset the higher usage in summer months. Therefore, the end of May represents the time period when your balance should be the lowest.

Enrollment into DCE’s NEM programs will not affect NEM 1.0 or 2.0 customers’ status. Desert Community Energy will honor SCE’s NEM 1.0 and 2.0 status for those customers already grandfathered in at that status, and the Time-Of-Use (TOU) periods you have with SCE will remain the same.

If you increase your solar system size after April 15, 2023, that will require a new application for expansion, and if the expansion is greater than 10%, you will move from your current NEM 1.0 or NEM 2.0 status to SCE’s most current Solar Billing Plan (SBP). No extra metering requirements would be needed.

If you add a battery to your existing solar system, your solar contractor should submit the appropriate application. If you are a current NEM 1.0 or NEM 2.0 ratepayer, adding a battery storage device will not affect your status. The same rule applies for customers on the Solar Billing Plan (SBP). You should also send an email to SCE’s NEM Interconnection Department ([email protected]), include your solar contractor’s email, and provide the original project number and address.

The Federal Income Tax Credit (ITC) is available for most residential and commercial rooftop solar installations. Currently, the ITC is set at 30% through 2032.

If you live in a designated area for Tribal Land, fire hazard zones, or disadvantaged communities, you may qualify for additional rebates or benefits. Ask your solar installer to see if you qualify.