Net metering is a billing arrangement allowing solar power system owners to sell excess electricity back to the grid. Payment is often received as credit against their electricity bills.
NEM (Net Energy Metering)
NEM is a system in USA that allows consumers with a renewable generating system to receive a credit for any surplus electricity they generate that is supplied back to the grid.This credit is applied to their energy bills and then used to offset some or all of their costs for the energy they consume.
NEM 1.0 USA
This is the first version of Net Energy Metering policies. Under this, if you have a solar power system you can sell any extra electricity you generate back to the electricity grid, usually at the retail price.The NEM 1.0 scheme took effect for anyone signing up before July 1st 2017. The package includes non-bypassable charges, a $1 monthly connection fee, and average savings of $245 per month for a 10 kW system.
NEM 2.0 USA
NEM 2.0 allows you to sell excess electricity, but with a small charge for the electricity you use from the grid. This version also introduced time-of-use rates, meaning the value of the energy you send back to the grid can change based on the time of day.
The NEM 2.0 scheme took effect for anyone signing up after July 1st 2017. The package includes bypassable charges of $0.02 per kilowatt-hour, a $75 one-time connection fee, a $10-20 monthly connection fee, and average savings of $204 per month for a 10 kW system.
NEM 3.0 USA
NEM 3.0 typically offers different rates for the excess power you generate and can include additional fees. Its aim is to balance the growing benefits of using solar power with the ongoing costs of maintaining the overall electricity grid.
The NEM 3.0 scheme was approved on December 15th 2022. The package includes bypassable charges of $0.04 per kilowatt-hour, an $8 monthly connection fee, a fee of $12-16 per month for SCE and SDG&E customers, or $48-64 per month for a typical system, and average savings of $70 per month for a 10 kW system.
