Net Energy Metering (NEM)

Learn how Net Energy Metering works with Solar

What is NEM?

Net Energy Metering (NEM) is a solar program offered by utility companies. This program allows you to receive credit from your utility for the excess electricity generated by your solar system.

 

How Does NEM Work?

When your system generates energy, it will power the appliances that require electricity. This energy will replace the energy you usually get from your utility company.

 

There may be times when you produce more energy than your home needs. In such cases, the surplus energy will be sold back to the utility company. By selling back the excess energy, you will receive an energy credit on your bill that can be used later.

 

However, there may be occasions throughout the year when you need to use additional power from the utility company, especially during the shorter days of winter. In this situation, if you have generated more energy in previous months, you can use the credit on your bill to cover the electricity used during those months.

 

Is NEM Different Per State/Utility?

Yes, depending on your utility company, they may have their own version of Net Energy Metering (NEM), or they may be using a more advanced version of NEM, such as NEM 3.0 implemented in California.

 
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Last updated on December 22, 2023