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Solar · California

San Diego Community Power: What Is the NEM Balance Credit Refund?

Understand SDCP’s NEM Balance Credit Refund, its distinction from surplus compensation, and what to confirm before counting it toward PPA payments.

San Diego Community Power’s NEM Balance Credit Refund adjusts prior generation charges using remaining credits. It differs from surplus-energy compensation. Understanding the distinction helps you review a statement alongside PPA payments.

This guide uses official information checked November 4, 2026. Confirm that your account is on NEM; do not apply these rules automatically to a Solar Billing Plan account or a new solar proposal.

What does the refund adjust?

SDCP’s NEM guidance says the annual adjustment compensates for Community Power charges applied during the relevant true-up period, up to the value of the remaining NEM balance.

For annual net generators, SDCP combines that refund with net surplus compensation and any prior true-up rollover. A combined amount above $100 produces a check; below $100 rolls forward. For annual net consumers, the refund returns to the NEM balance to offset future Community Power charges. Ask SDCP about an exact-$100 result, which the webpage’s wording does not resolve.

Net surplus compensation instead concerns annual excess energy. A credit balance in dollars alone does not establish that the household was an annual net generator.

Request the components, not just the total

Before treating an adjustment as cash available for a provider invoice, ask SDCP for an explanation showing:

  • The true-up period and refund calculation.
  • Annual net-consumer or net-generator status.
  • Separate surplus compensation, prior rollover and payment treatment.

Keep the explanation with the statement. This checklist is a suggested way to organize the review, not a claim that every line appears under these exact labels on a bill.

For a hypothetical annual net consumer with a $60 refund, the result is a $60 NEM rollover, not a check. Confirm actual amounts with SDCP.

Keep generation and delivery separate

SDCP’s bill guide explains that Community Power generation and SDG&E delivery appear on the consolidated SDG&E statement. Community Power’s generation charge replaces the generation charge otherwise paid to SDG&E. SDG&E continues billing, delivery and grid outage responsibilities.

Check enrollment on your own statement. SDCP’s service overview lists San Diego, Chula Vista, Encinitas, Imperial Beach, La Mesa, National City and unincorporated San Diego County. A San Diego County address alone does not establish SDCP service.

Our SDCP and SDG&E bill guide explains the providers’ roles when comparing rooftop solar payments.

Include the PPA and battery on their own terms

A qualifying no-upfront solar-plus-battery PPA can help eligible homeowners access equipment while preserving cash. Ask the provider to keep utility adjustments distinct from PPA invoices in the comparison, and avoid counting the same credit twice.

The CPUC solar guide explains provider ownership and ongoing electricity payments. Review the rate, escalator, term, battery fees, maintenance and transfer provisions, plus remaining utility charges. No upfront equipment purchase does not mean free electricity or guaranteed savings.

If you are considering a battery, separately check SDCP’s Solar Battery Savings requirements, approved equipment and contractors, application timing and actual funding reservation. A NEM refund does not demonstrate eligibility for that program or a particular PPA offer.

For backup, PG&E’s general storage guidance explains why charge and connected demand affect duration. Confirm supported circuits, output limits and reserve settings. Ordinary grid-tied solar alone generally does not provide outage power; solar recharge requires compatible backup equipment and suitable sunlight.

Bring the statement, SDCP’s adjustment explanation and proposed agreement to the West Coast Alternatives homeowner journey. WCA is independent of SDCP and cannot determine your account’s refund.