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NEM 3.0 Calculations

Published on 15 Sept 2023

Below you will find the following rate assumptions made in Solargraf when selecting a NEM 3.0 grid connection type.

Buy rates: Hourly rates as defined in tariff structure divided into 3 components – Generation charges, distribution charges, fixed charges.

PGE E-ELEC rates at summer (June – Sept) on-peak and off peak (as of May 9, 2024).

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Sell rates: PGE hourly rates as defined in CPUC ACC calculator with ACC adders as per the utility and customer type (as of May 9, 2024).

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Below we will analyse 3 hours of September to understand the calculations.

Note: The examples are only for representative purpose.

Scenario 1: Sept 24, 11AM (net production, charging the battery)

  • Production = 10kWh

  • Consumption = 2kWh

  • Battery charge = 8kWh

  • Grid export = 0kWh

  • Grid import = 0kWh

  • Generation charges = grid import × Generation buy rate = 0×0.14 = $0

  • Delivery charge – grid import × Delivery buy rate = 0×0.16 = $0

  • Generation credit = grid export × Generation sell rate = 0×0.05 = $0

  • Delivery credit – grid export × Delivery sell rate = 0×0.01 = $0

Summary: Not charges added to bills; No credits generated

Scenario 2: Sept 24, 6PM (Net consumer, discharging battery to grid)

  • Production = 0kWh

  • Consumption = 4kWh

  • Battery discharge = 8kWh

  • Grid export = 4kWh

  • Grid import = 0kWh

  • Generation charges = grid import × Generation buy rate = 0×0.28 = $0

  • Delivery charge – grid import × Delivery buy rate = 0×0.23 = $0

  • Generation credit = grid export × Generation sell rate = 4×3.76 = $15.04

  • Delivery credit – grid export × Delivery sell rate = 4×0.01 = $0.04

Summary: No charges added to the bills; credits generated ($15.04 - Generation and $0.04 - Delivery)

Scenario 3: Sept 24, 7PM (Net consumer, import from grid)

  • Production = 0kWh

  • Consumption = 10kWh

  • Battery discharge = 0kWh

  • Grid export = 0kWh

  • Grid import = 10kWh

  • Generation charges = grid import × Generation buy rate = 10×0.28 = $2.80

  • Delivery charge – grid import × Delivery buy rate = 10×0.23 = $2.30

  • Generation credit = grid export × Generation sell rate = 0×0.18 = $0

  • Delivery credit – grid export × Delivery sell rate = 4×0.01 = $0

  • Generation charges of $2.80 dollar will be offset by available Generation credits in previous hour to make it $0.

  • Delivery credits of $2.3 will be offset by available Delivery credits in previous hour to make it $2.30 - $0.04 = $2.26.

  • Remaining credits of individual components (Generation and Delivery) are moved to subsequent hours.

Summary: No Generation charges added to bills; Delivery charges of $2.26 added to bills; No new credits generated.

Monthly bill calculation:

  • The above mentioned scenarios are the calculations performed sequentially for each hour in a given month.

  • At end of month, Generation and Delivery usage charges are added to determine the total usage charges of the month.

  • Usage charge (month) = Generation charges + Delivery charges.

  • If credits are available at the end of month, they are transferred as individual credits (Generation and Delivery) to subsequent month.

  • Credits rollover depends on the user selection in utility page. NEM 3 policy dictates the indefinite rollover of credits. This means credits are rolled over indefinitely as individual components.

  • Necessary ACC adders, fixed charges, minimum charges are added to usage charges to provide customer with final monthly bill.

Related Articles

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Custom Tariff Builder

Understanding NEM 3.0 in Solargraf

View tariff rates for US tariffs 

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