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Many homeowners actually feed additional generated electricity back to the grid.

See the letter below from Northern California's PG&E that was sent to solar system homeowners in January of 2010.

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Renewable Energy Resources

January 2010

Pacific Gas & Electric customers who have solar panels on their home and are part of the net energy metering program received a letter specifying the terms of assembly Bill 920 and how that relates to compensation for the contribution of electric power that they supply to the Northern California grid.

That letter reads:

PG&E would like to let you know about a net energy metering (NEM) program enhancement that goes into effect this year. Late in 2009, Gov. Schwarzenegger approved a new program feature (graph assembly Bill 920-Hoffman-solar and wind generation) graph that provides a new compensation option to your basic NEM program.

If you provide more energy to PG&E's electric system (PG&E grid) then you receive on a 12 month basis, you would be identified as a "net generator." As a result you would have the ability to receive a once-per-year compensation for the excess electricity supply to the PG&E grid. Starting in 2011, this compensation will be calculated at the time of your normally scheduled, annual through-up.

The California Public Utilities Commission (CPUC) still has to determine the details before the new enhancements to the NEM program are fully implemented. In the meantime, you will automatically be enrolled in the new program and the 12-month. That determines your eligibility for compensation will start on your regular 2010 true-up date. For example:

if you qualify as a net generator at the end of your 12 month true up. Starting in 2010 and ending in 2011, you will qualify for compensation for your net excess electricity. PG&E will automatically notify you at the time of your compensation options.

1. If you do not qualify as a net generator at the end of your 12 month true up., you will not be eligible for compensation for that. And there will be no charge from the current NEM program. If you should become a net generator in any subsequent 12 months true up, PG&E will notify you of your compensation choices.

If you would like to move up to 2010 start date of your 12 month true-a period, you may elect to do so by providing the information requested below and submitting it to PG&E at:

NEM Compensation Program
P.O. Box 770000
MC B12 C
San Francisco, CA 94177

If you do not choose to move up your upcoming 2010 true update, PG&E will perform a true up of your account once we receive your request. However your surplus electricity, if you have any associated with the previous True-up, will be zeroed out. In summary you do not need to take any action to be eligible for the new program, and PG&E will automatically notify you of your compensation options if you qualify as a net generator. You may want to periodically check for updates on the new features at our solar energy website at http://www.PGE.com/solar, or feel free to call or solar consumer service Center at 1-877-743-4112.

We appreciate your ongoing business and will continue to inform you of any significant updates or changes to the NEM program as they occur.

Sincerely, Felicia K. Lokey
Senior Dir.
Customer Engagement, Pacific Gas & Electric Co.