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Net Metering 101 a Solar Energy Concept

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As solar power is gaining popularity – for households and businesses alike – so is Net Energy Metering or NEM. NEM is a somewhat complicated term that’s typically associated with solar and is one of those concepts that is difficult to understand. But you’re not alone. Let’s jump right in. What is NEM and why should you care?

NEM is a special billing arrangement whereby customers that install renewable distributed generation (DG) systems, such as solar, receive billing credits for “excess” electricity. This “excess” electricity is measured in kilowatt-hours (kWh), is produced by their respective DG systems and is flowed back into the electric grid.

That’s simple to grasp, right? But what if you want to get your energy from an Energy Service Provider (ESP) other than the local utility in a state with a competitive retail market structure? Every state has their own unique rules for NEM and in addition, the rules differ for those states that allow retail competition. It’s not as complicated as it sounds. It’s about knowing what your options are and being able to CHOOSE the best one for your home or business.

Check out more information about NEM.

As California is a leader in the solar industry and with their NEM regulations and laws, I’m going to focus on the California NEM Policies in my next post.

Posted: October 31, 2013