Thinking About Solar? Here’s the Skinny on NEM

Jan 08, 2019

In California, your utility company provides Net Energy Metering (NEM). Net Energy Metering helps you to reduce your monthly electric bill with the energy you generate from your own solar energy system (rooftop or ground mount). The difference between what you use and what you generate is measured by a special meter, which your utility company installs. This meter is referred to as Net Energy Metering or NEM. Your utility company calculates your bill using this energy difference, which is referred to as ‘net energy’.

Why Do People Care About Net Energy Metering?

When you go solar you are able to generate credits that can offset all of your electricity charges.

What does it mean for the energy client? Credits are added to their bill when they produce more electricity than they are using, and energy generated is balanced with energy used in a monthly statement. This means that even if you do not entirely cancel out your electricity bill, you still may realize substantial savings.

How is NEM billed?

Once your solar energy system is activated, as a PG&E customer, you are automatically enrolled in the Net Energy Metering (NEM) program to monitor both your solar energy production and home’s consumption. (If you are not a PG&E customer, contact your utility company for details, or call Byers Solar at 530-272-8272‬ for insights.)

PG&E will install a specially programmed net meter to measure the net energy — this meter measures both your energy use and the energy your solar system generates.

Each month your meter is read. You will receive a statement with full details on both production and energy use, but you pay only for your monthly minimum delivery charges and any gas

charges.  Your energy credits and any charges are carried forward a month to month for 12 billing months. The final amount is reconciled on your annual True-Up statement.

It is important to read these monthly statements and evaluate your energy use and know the approximate energy credits or fees being accrued for the annual True-Up bill.

We will be writing more about NEM and True-Up Statements soon, so stay tuned! Meanwhile, feel free to give us a call with any questions you may have concerning solar, and remember, Byers Solar will provide you with a no-hassle on-site evaluation and full estimate, including site-specific energy production capacity, call 530-272-8272 to learn more.

Getting Solar in 2019 Gives you these Benefits:

  • There is still a 30% tax credit through 2019. After 2019, this credit decreases and gradually is eliminated.
  • Excellent technology makes solar more affordable—superior energy production means fewer panels, reducing overall cost.
  • Utility rates and terms continue to climb upwards. Get your Net Energy Metering (NEM) locked in at a good rate.

* Net Energy Metering (NEM) is the rate that your utility company agrees to compensate you for the energy you generate.