Solar energy customers have a special billing mechanism called “NEM” which stands for Net Energy Metering. NEM gives solar system customers credit for electricity they add to the grid. It does this by tracking electricity usage and levels of unused electricity generated by solar energy system owners. For example, if a residential customer has a PV (photovoltaic) system, it may generate more electricity than the home uses during daylight hours. That credit can be used to pay for the energy that you use at night.
There are many pros for Net Energy Metering. NEM helps solar energy customers get a solid return on their solar investment. For a year long period of time, NEM lets customers only pay for electricity used from the grid when their demand exceeded the limits of their solar energy system. It also accurately tracks electric energy levels used, produced and gives back full credit at retail rate levels. The Net Energy Metering billing system allows customers to pay once every 12 months and the NEM systems billing agreement lasts 20 years.
Another item to note is Non-Bypassable Charges or NBCs, which are pre-set electric utility rates charged at one to three cents per-kilowatt hour. These charges aid customer support, energy efficiency and similar programs. Also, if gas service is part of your utility it will now be part of a separate billing plan. It is important to remember that seasonal variations (such is turning up the heater or using the air conditioner more) affects energy usage and bills.
Once solar customers are moved over to net metering, they must choose a new Time-Of-Use rate plan. There are several to choose from, however, we at Sungenia recommend the TOU-DR rate plan. Although your ideal rate plan will ultimately depend on your unique lifestyle, for almost all residents, this rate will yield the most savings. Expect higher rates during peak times and lower charge costs when energy demands are low. Feel free to call us at 844-786-4364 if you’re unsure of the rate that will best suit your home.
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