Net Energy Metering
A Smart Approach to Solar Savings
Net Energy Metering (NEM) is a cornerstone policy in California that significantly influences how solar energy and battery storage users are compensated for the electricity they generate and send back to the grid. This framework directly impacts homeowners who are customers of the state's major investor-owned utilities, such as PG&E, SCE, and SDG&E.
What is Net Energy Metering (NEM)?
Net metering is a billing mechanism that allows solar energy system owners to receive credits for surplus electricity they generate and feed back into the grid. These credits help offset the cost of electricity drawn from the grid when the solar panels aren’t producing enough power to meet the household’s energy needs. It's not just about saving money—it's about empowering homeowners with control over their energy production and consumption.
Interested in learning how net metering can work for you? Speak to an expert at SolarUnion today.
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Contact Us TodayKey Features of NEM
- Value of Solar Energy Credits: NEM uses the "Avoided Cost Calculator" (ACC) to determine the value of solar energy credits. This innovative tool ensures that solar energy producers receive fair compensation for their contributions to the grid.
- Emphasis on Energy Storage: One of NEM’s goals is to integrate battery storage with solar systems. By storing excess energy during low-demand periods and using it during peak times, homeowners can significantly enhance their clean energy savings.
- Support for Grid Stability: NEM ensures that the costs of maintaining the electrical grid are shared more equitably among all users, including those with solar systems. This promotes long-term sustainability and stability within California’s energy infrastructure.
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The Goals of NEM
- Reflect True Costs: NEM aims to more accurately represent the costs and benefits of solar energy to the grid, ensuring that solar customers receive fair compensation while supporting grid maintenance.
- Encourage Energy Storage: By emphasizing energy storage, NEM encourages homeowners to better align their solar generation with peak demand periods, making their energy use more efficient and cost-effective.
- Promote Equity: NEM ensures that all utility customers, whether they have solar or not, share the costs of grid upkeep fairly. This supports the broader community while incentivizing sustainable energy practices.
Align your energy use with California’s clean energy goals. Contact us to see how SolarUnion can help you achieve energy independence.
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Financial Savings
The financial returns under NEM can be immediate, with long-term savings that significantly reduce utility bills. Homeowners can also potentially earn from stored energy during peak times, which is valued in the tens of thousands of dollars over the system's lifetime. Additionally, federal and state incentives, such as the federal solar tax credit and California's Self-Generation Incentive Program (SGIP), further enhance the financial viability of solar and battery storage investments.
Environmental Benefits
Choosing solar energy not only saves money but also benefits the environment. Solar reduces reliance on fossil fuels and lowers greenhouse gas emissions, aligning perfectly with California’s ambitious climate goals and sustainability initiatives.
Energy Independence
Pairing solar energy with battery storage and backup functionality offers homeowners greater energy independence. By generating and storing your own electricity, you reduce reliance on the grid and shield yourself from fluctuating utility rates. During power outages or grid failures, your solar and storage system will keep your home powered and secure.
Future-Proofing
As the energy grid evolves, homes with solar and battery storage systems will be better positioned to benefit from future advancements in renewable energy and smart grid technologies. By investing now, you are not only saving today but also setting your home up for future energy initiatives.
