Update: The Fight for NEM
Net Energy Metering is the current version of the agreement. It’s also known as NEM 2.0. This agreement allowed California’s market for Solar to flourish. As a result, thousands of households were able to benefit from rooftop solar. These installations have helped California achieve its green energy goals and established it as a leader in clean energy. It makes sense, given the success of this program, to leverage a pro-consumer deal like NEM 2.0 in order to continue to encourage solar adoption. However, some people would like to change the agreement.
In essence, utilities have proposed to tax consumers for solar energy generation through the Net Energy Metering Agreement. This 3.0 version would undermine the solar incentive program and be in direct opposition to the clean energy goals California has set for itself. Simply Solar is strongly opposed to such a change. We believe the current agreement (NEM 2.0) is better for energy adopters who have taken actions to support California in its laudable goal. It would be unfair to those who are working to make the future brighter to change the agreement.
Stay tuned for updates as we continue monitoring the situation.
What is net energy metering?
The Net Energy Measuring, or NEM, depends on the amount of energy that your system produces and how much electricity you consume on a daily basis, monthly basis, and annually. Solar systems that have more energy than is needed to run your home are sent back to the grid. If more power is required than what can be made, the leverage from your grid will be fed into your home. You may receive a credit if you have more electricity than you consume.
If you’re part of a “time of use” program, you’ll be able to export excess energy when rates are high and use it from the grid at lower speeds, such as when the sun sets. If you are on a time-of-use plan, you can receive a monthly credit even if you export more energy than you consume. Credits you receive can be used to offset charges in other months.
Your electric meter will keep track of how much electricity you use and any surplus energy that you send back to the grid when your household joins NEM. Your utility company will send a NEM statement to you every month. This will let you know your credit or charge for that month. After 12 months, you will be sent a “true-up” bill. This is a statement that covers the previous 12-month period. Due to NEM, the only amount you pay is the net amount of energy used.
Net energy metering: Benefits and advantages
The NEM 2.0 agreement is a primary incentive for customers to switch to solar. This is in addition to lower energy bills and increased security against grid instability. And, of course, an increase in property values. The NEM 2.0 agreement provides users with the following:
Please get rid of their energy bills
Credits at full retail prices
Data on energy consumption and production.
Different types of Metering
The majority of homes are equipped with bidirectional meters that can send and receive electricity and measure the amount. They are commonly called ‘nontime of use meters’ because they can only record how much electricity is used and not the actual time. These meters don’t account for time of use, so some utilities will require that you have at least two meters to qualify for net energy meters.
There is also a more advanced meter, commonly known as a “time of use meter.” This type of meter can record the time when electricity is consumed, which allows utility companies to charge at different rates.