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"The repair work done by BrightShield was exceptional, and my solar panels are now running at their best!"

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"BrightShield has been my go-to for solar maintenance; their professional approach and eco-friendly practices are commendable!"

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"I highly recommend BrightShield for their sustainable solar solutions; my energy bills have significantly reduced, and the installation looks fantastic!"

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SOLAR NET ENERGY METERING (NEM)

NEM (Net Energy Metering) is a billing system that helps homeowners with solar panels save money. When your solar panels make more energy than your home uses, the extra electricity is sent back to the power grid. In return, you get credits on your utility bill. These credits help lower the cost of the electricity you use from the grid, like at night when your panels aren’t producing power.

There are three versions of NEM (NEM 1.0, NEM 2.0, and NEM 3.0), each with different rules about how much credit you get for your extra solar energy. Recent changes encourage battery systems to maximize your savings and energy independence

NEM 1.0

The original Net Energy Metering program, where customers receive a 1:1 retail rate credit for the excess energy their solar system sends to the grid. This means the value of exported energy matches the cost of imported energy, maximizing savings for solar customers. Commonly includes grandfathering for up to 20 years.

NEM 2.0

An updated version where customers still receive retail-rate credits but must pay non-bypassable charges (small fees per kilowatt-hour for grid maintenance and public programs). This system introduced requirements like time-of-use (TOU) rates, which adjust electricity costs based on the time of day.

NEM 3.0

A newer structure was adopted in April 15, 2023. Exported energy is now credited at a much lower avoided cost rate. This significantly reduces the value of excess solar energy sent to the grid, encouraging customers to adopt battery storage systems to maximize self-consumption. Upfront savings are lower, but energy independence is prioritized.

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Do you have a true-up?

A true-up is an annual or monthly reconciliation process used in solar energy billing under Net Energy Metering (NEM). It ensures that your utility company calculates the difference between the energy your solar system produced and sent to the grid (credits) and the energy you pulled from the grid (charges) over a billing period.

NEM 2.0

Annual True-Up: Solar customers received an annual true-up statement summarizing their net electricity usage over a 12-month period. This statement detailed cumulative energy charges, credits, and any balance due or credit owed. If your solar system produced more energy than you consumed during the year, you might have been eligible for compensation.

NEM 3.0

Monthly True-Up: The new policy shifts to a monthly true-up process. Each month, your utility calculates the difference between the energy you consumed from the grid and the energy your solar system exported. Credits for excess energy are applied based on the current avoided cost rate, which is typically lower than previous rates. This means that any charges or credits are settled monthly, reducing the likelihood of a large balance or credit accumulating over the year.

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