UTILITY’S PROPOSE NEM 2.0, GOOD FOR THEM, BAD FOR ROOFTOP SOLAR.
Net energy metering, or “NEM”, is a special billing arrangement that provides credit to customers with solar PV systems for the full retail value of the electricity their system generates. Under NEM, the customer’s electric meter keeps track of how much electricity is consumed by the customer, and how much excess electricity is generated by the system and sent back into the electric utility grid. Over a 12-month period, the customer has to pay only for the net amount of electricity used from the utility over-and-above the amount of electricity generated by their solar system (in addition to monthly customer transmission, distribution, and meter service charges they incur).
How Net Energy Metering Works
At any time of the day, a customer’s solar system may produce more or less electricity than they need for their home or business. When the system’s production exceeds the customer demand, the excess energy generation automatically goes through the electric meter into the utility grid, running the meter backward to credit the customer account. At other times of the day, the customer’s electric demand may be higher than the renewable energy system is producing, and the customer relies on additional power needs from the utility. Switching between the solar system’s power and the utility grid power is instantaneous-customers never notice any interruption in the flow of power.
Benefits of Net Energy Metering
NEM is your gateway to optimizing the rate of return on your solar investment.
- Allows customers to zero-out their bills.
- Credits customer accounts at full retail rates.
- Accurately captures energy generated and consumed, providing customers with annual performance data.
The current NEM agreement is anticipated to reach its cap by June 2016. Utilities have proposed that the new NEM policy, NEM 2.0, will only pay 10¢ for every watt produced but the homeowner, selling the energy back to the homeowner at retail rates, which could be as much as 40¢ watt.
Until we know exactly what the new NEM 2.0 will be, anyone who has been considering going solar, NOW IS THE TIME. NEM is as good as it will ever be. And all homeowners who are online before the cap is reached, are grandfathered into the current agreement for 20 years.
Want to learn more, or get a free quote? Call today before it’s too late. Don’t wait even a few weeks.