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.

  • Brings the value of renewable power in line with the changing hour-to-hour needs of the grid, while also providing a bonus to reflect the benefits of generating clean energy in San Francisco.

  • Promotes equity for customers with low incomes and ensures fairness for all our ratepayers.

  • Impacts only about 10% of CleanPowerSF solar customers the first year it goes into effect (if approved).

  • 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 ultimately goes unused. In the evening when the sun sets and solar production declines, California relies on dirty fossil fuels to ensure everyone has the electricity they need.

    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, do not reflect this new reality. Under NEM, customers are still highly incentivized to send solar energy to a grid during the day when it increasingly doesn’t need it. Many utilities across California, including other community choice aggregation programs like CleanPowerSF, now offer Solar Billing Plans.

    We are proposing our own Solar Billing Plan for customer-owned renewable energy systems, but we have taken our time to get it right. We want to find the right balance aligning the rate at which we pay for clean power to what it would cost to buy that electricity elsewhere; ensuring equity for customers who require more assistance; and promoting fairness for all our CleanPowerSF ratepayers, including those who cannot install a renewable energy system of their own. Ultimately, we want to do our part to help San Francisco and California continue to meet its climate and clean energy goals.

  • Most CleanPowerSF customers with a rooftop solar system will not be impacted by our Solar Billing Plan in the first year. In fact, just about 10% 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 conducted a comprehensive engagement process with customers, advocates, and industry representatives as we developed our Solar Billing Plan. We have now incorporated feedback received into our updated proposal. For example, our revised proposal now includes an additional credit for generating local renewable energy in San Francisco. 

Key elements of the proposed Solar Billing Plan include: 

  • Updated compensation for the energy you send to the grid: Because the local renewable energy you send to the grid allows CleanPowerSF to avoid purchasing electricity on the market, we avoid certain costs as an electricity provider. Rather than a set rate, like provided under NEM, we are proposing to pay a rate that fluctuates in response to how much energy the grid needs. This amount is based on a state-approved calculation, and changes hourly depending on the day, time of day, and season. These rates can be found on PG&E’s website here. 

  • New local energy credit: Since the state- approved formula calculates one rate for all of northern California, we developed an additional credit to better reflect the value of power generated specifically in San Francisco. To reflect this benefit, we are proposing to provide an extra $0.01/kilowatt-hour credit to all Solar Billing Plan customers that send electricity to the grid, regardless of the time of day. 

  • Equity credit: If you are on an energy discount program like CARE (California Alternate Rates for Energy) or FERA (Family Electric Rate Assistance), we are proposing to offer an additional $0.07/kWh credit for electricity sent to the grid. 

  • Net Surplus Compensation: Each year, CleanPowerSF will review the annual usage of each Solar Billing Plan customer to determine if the amount of energy each customer sent to the grid exceeds what they used from the grid.  If the customer sent more power to the grid than they used from the grid, CleanPowerSF will compensate the customer for the renewable and environmental value of that "surplus” energy.  This is called Net Surplus Compensation and is in addition to credits the customer earned earlier in the year. 

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 so 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 Water Heater Upgrade Program
One way to store energy is in your water heater and specifically, a heat pump water heater. Your solar system can generate electricity to heat water during the day that can then be stored in your water heater and used later. Also, if you have a gas water heater, replacing it with a heat pump means you are using fewer fossil fuels in your home, providing an even greater environmental benefit.

We offer up to $1,200 in bill credits to upgrade to a heat pump water heater. That means a $50 credit every month for two years. (If you are on an energy discount program, you can receive bill credits for up to three years. Learn more about our Water Heater Upgrade program.

Coming 2026: Battery Storage Incentives
Adding battery storage to your home renewable energy system can also help you maximize savings under our proposed Solar Billing 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. * 

  • November 4, 2025: The Rate Fairness Board reviews the Solar Billing Plan. You can attend this public meeting. 

  • December 9, 2025: The SFPUC Commission reviews and votes on the proposed Solar Billing Plan. You can provide public comment and/or attend the Commission meeting. Meetings take place at San Francisco City Hall, Room 400, and begin at 1:30 p.m. 

  • May 2026: New interconnections and PG&E Solar Billing Plan customers enrolled in CleanPowerSF Solar Billing Plan. 

  • May 2027: First True-Up under CleanPowerSF Solar Billing Plan. 

* Dates subject to change 

Past Engagement