Charge Type Laning
Charge Type Laning applies when a utility assigns different values to energy exports based on specific charge types—and restricts how those energy credits can be used. In this structure, any energy credits earned can only be applied to offset charges within the same category (or “lane”) of the retail rate.
When a customer’s bill does not have enough energy charges within a given billing lane, excess energy credits cannot be applied to other energy charge types, they are banked separately. What ultimately happens to remaining energy credits at the end of each month, depends on the utility’s NEM rules—particularly how it defines the true-up period and compensation structure.
Example: California - Pacific Gas & Electric (PG&E)
PG&E structures its retail energy rates into two distinct charge types: Supply charges (highlighted blue below) and Transmission & Delivery (T&D) charges (highlighted green below).
Under PG&E's current metering program, NBT (otherwise known as NEM 3.0), exported energy is compensated based on the Avoided Cost Calculator (ACC), which determines hourly export values. A key detail—and one that is often overlooked—is that these ACC export values are also broken out by charge type.
2026 ACC Export Values - Supply
2026 ACC Export Values - Transmission & Delivery (T&D)
The total ACC energy export Value on 2/4/2026 at 6:00 am is $0.0889 / kWh. If a system exports 1,000 kWh in this hour, total energy credits = $88.90. However, the application of this energy credit is restricted by charge type:
- $0.0881 / kWh for Supply = $88.1
Supply credits can only offset Supply charges
- $0.0008 / kWh for T&D = $0.80
T&D credits can only offset T&D charges
Under PG&E's current Net Billing Tariff (NBT / NEM 3.0), the true-up period is annual, meaning excess energy credits generated in each monthly billing cycle are banked by charge type and roll over to offset future charges of the same type. At the end of the customer’s annual true-up period (twelve monthly billing cycles, also known as the relevant period), the compensation for any remaining banked energy credits by charge type is defaulted in ETB to no compensation.
In order to receive compensation (physical check), the customer would have to be Net Surplus Compensation (NSC) eligible. To be eligible, the customer's site must send more energy back (export) to grid then used (import). Example:
Imported Energy = 100,000 kWh / Exported Energy = 150,000 kWh / Net Energy = -50,000 (NSC Eligible)
Therefore, if sizing systems to be at 100% offset or less, those sites will likely not have a negative net energy usage and will not be NSC eligible and not entitled to monetary compensation. However, the remaining banked up energy credits can roll over to the customers next 12 monthly billing cycles.
In the event a site is NSC eligible, the customer could potentially receive monetary payment at the end of true-up. However, this calculation is complex and has reversal adjustments. Please connect with your Project Development Advisor to determine whether a different compensation setting or system sizing approach would better align with project goals.