How San Diego Gas & Electric credits home solar

The CPUC decision that created the tariff says it does not call it NEM 3.0 and refers to it as the net billing tariff, and SDG&E calls it the Solar Billing Plan. It applies to SDG&E customers who submit an interconnection application on or after April 15, 2023. The decision makes the tariff's terms available for nine years to the customer who originally has the system installed.

At the end of each 12 month period, SDG&E sends a true up bill and then resets the account for a new 12 month period. If you exported more energy than you imported, the export credit already given for that surplus is backed out using average export values and replaced with net surplus compensation, which SDG&E bases on a rolling 12 month average of spot market prices. If you imported more than you exported, no adjustment is made.

SDG&E says the net energy metering legacy period began when the panels were first installed and interconnected, even if you moved in recently. When that 20 year period ends, the account moves to the Solar Billing Plan, and SDG&E says it notifies customers by email and in My Energy Center before the change. The CPUC says customers who move to the net billing tariff from an older net metering tariff are not eligible for its nine year legacy period.

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

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