What exactly is Net Energy Metering?

Net Energy Metering or NEM is a billing arrangement that can provide credit to Solar PV system customers. You can get credit for the full retail value of the electricity your system generates.

How does NEM work?

When you have a solar power system, there are times of the day that you might be producing more electricity than you use. With NEM, the excess power gets sent back into the grid. You power company watches your usage and when power gets sent into the grid, your meter can actually move backwards and your power company credits your account.

Why would I want to sign up for NEM?

Other than watching your meter spin backwards, you can:

  • Zero out your bill- When you sign up for NEM, it is over a 12 month period. During that period, you only need to pay for the electric energy you used. If you used less than what you sent into the grid, you could potentially not owe anything!
  • Receive credit on your account- If you generated a net surplus of energy at the end of 12 months, your energy company can pay you.

Am I Eligible?

You are eligible if:

  • You are a customer of an electric utility company in the state of California.
  • You generate at least some of your energy through a renewable energy source.
  • Your renewable energy source’s peak output is 1,000 kWh or less.

If you are eligible, you will want to get in touch with your electric company as soon as possible to apply for Net Energy Metering.

For more information, visit: http://www.gosolarcalifornia.ca.gov/solar_basics/net_metering.php

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