How NEM Works

Net Energy Metering Illustration

As illustrated, the residential customer has Total Energy Needs of [A] 1,000 kWh per month. During daylight hours that month, the homeowner’s rooftop Solar system generates [B] 600 kWh of power. The customer only uses [D] 250 kWh to meet the family’s needs during the daytime. So the remaining [E] 350 kWh, is exported back to the grid. During the night, the family relies on the utility to deliver its remaining energy needs. The customer is only billed for the Net Consumption of [C] 400 kWh, which is equal to the Energy Delivered [F] minus the Energy Exported [E].

Net Energy Metering In Action

This is Net Metering in action. Notice the arrow pointing left and the negative number showing that 4.960 kilowatts of energy is being sent to the grid at this moment in time. On the day of this photo this solar system sent over 31.5 kWh to the grid.

The meter photo shows Net Energy Metering in action. Notice the arrow pointing left and the negative number showing that 4.960 kilowatts of energy was being sent to the grid at that moment. By sundown that day (December 29, 2015), a total of 31.82 kWh was generated by this particular rooftop solar system.

2015-12-29_wipeout

During daylight hours that day, this rooftop solar system produced more energy than was consumed by the household over the full 24 hour period.

After sundown the residence was able to draw energy back from the grid without cost, still leaving surplus energy on the grid. Net energy use on this day was less than the energy produced.