The short answer

How the bill works

Under NEM 2.0, a kWh you exported cancelled a kWh you used later, at nearly the same price. Under net billing they never cancel: imports are billed at your time-of-use price, and exports earn a dollar credit set by the CPUC's Avoided Cost Calculator for that month, hour and day type (D.22-12-056). Credits roll forward and are settled once a year at your true-up. You pay all charges monthly; there's no annual-pay option.

The CPUC says export values are "usually lower than import rates" but can top retail prices on late-summer evenings. SCE's own examples: about $0.21 per kWh for summer evening exports versus about $0.03 for winter daytime exports (SCE).

The required rate plan

New net-billing customers must take an electrification time-of-use rate: TOU-D-PRIME at SCE or EV-TOU-5 at SDG&E. Peak is 4–9 p.m. on both. See rate plans explained.

The 9-year lock and the early-adopter bonus

Charges solar can't avoid

Did the courts change anything?

No. After the California Supreme Court sent the case back in 2025, the Court of Appeal upheld the net billing decision again on Mar 9, 2026 (opinion).

What it means for you

Checked against official sources on Oct 1, 2026. Sources are linked in the text. Not legal, tax or financial advice.