Net Energy Metering as we know it is currently the second iteration of the agreement, known by many as NEM 2.0. This agreement has allowed California's solar market to flourish, and as a result thousands of households have been able to access and benefit from rooftop solar. These installations directly contribute to the green energy goals of the state, and have established California as a paragon of clean energy. Given the success of the program, it would make sense to continue leveraging a pro-consumer agreement like NEM 2.0 to continue to incentivize solar adoption, but there are some who would like to see this agreement changed.
Namely, utilities would prefer not to compensate consumers as generously for their solar generation, and have essentially proposed a solar tax through their intention to reform the Net Energy Metering agreement. The 3.0 version of this agreement would constitute an undermining of the solar incentive system, and go directly against the stated clean energy goals that California has established for itself. Simply Solar stands strongly against such a change, as we believe that the current agreement, NEM 2.0, is better for the energy adopters who have taken action to support the state in its laudable goals. To change the agreement on them would be a disservice to the very people who are trying to create a brighter future.
A decision on the proposed update to the agreement is expected no later than September 29th, so stay tuned as we continue to monitor the situation.
What is Net Energy Metering?
Net Energy Metering, or NEM, all depends on how much energy your system generates and how much you use on a daily, monthly, and annual basis. When solar systems generate more power than your home needs to operate, the excess energy is sent back into the grid. When more energy is needed than produced, energy from the grid gets fed back into your home as per usual. So, depending on how much electricity your system produces and how much you use, you may end up with either a credit or a charge.
Additionally, if you are part of a ‘time of use’ program, you can export excess energy back to the grid when rates are higher, and consequently use electricity from the grid when rates are lower- such as after the sun has set. When on a time of use plan, you may receive a credit for the month even if you use more than exported. The credits you receive rollover to compensate for the charges you receive in other months.
When your household is a part of NEM, your electric meter keeps track of the amount of electricity you consume, as well as any excess energy you've sent back to the grid. Every month, your utility company will send you a NEM statement letting you know what your charge or credit is for the month. Then, after a 12-month period, you will receive a ‘true-up’ bill, which is a statement covering the past 12-month period. Because of NEM, you are only required to pay for the net amount of electricity used from the grid.
Provide credits to their accounts at full retail rates
Record performance data for energy generated and consumed
Kinds of Metering
Most homes have bidirectional meters, which are able to send and receive energy, and monitor the amount of energy that is transmitted or received. These meters are most commonly referred to as ‘non-time of use meters’ because they are only capable of recording how much electricity was used, not the time of use. Since these meters do not account for the time of use (TOU), some utility companies will insist that you have two meters in order to be eligible for net energy metering.
Additionally, there is another type of meter commonly referred to as a ‘time of use meter’ which is much more sophisticated. This kind of meter is able to record when electricity is used, allowing utility companies to charge different rates at different times.
Solar energy generates tremendous benefits for you and the planet. We utilize the latest solar advancements that will not only help you save money, but will contribute to reducing your carbon footprint. Our goal is to make the solar process feel simple and easy, from the proposal to the installation and throughout the lifecycle of your system.
Why choose Simply Solar when there are so many commercial solar companies vying for your business?
Experience: With over 20 years in the industry, we have what it takes to build a solar system that will exceed your expectations.
Products and Partners: With industry-leading products, which we choose for their durability and outstanding performance, you can be sure that your solar panel system will last for many decades.
Expertise: Commercial solar companies hire out inexperienced contractors. Not Simply Solar! We handle the full site analysis, system engineering, permitting, installation, activation, monitoring, and maintenance of your solar system.