What is Net Energy Metering (NEM)?

How It Works & Why It Matters

Solar energy is a game-changer for homeowners across the nation, offering lower electricity bills and greater energy independence. But what happens when your solar panels produce more power than your home needs? That’s where Net Energy Metering (NEM) comes in. Learn more about this important aspect of installing solar on your home and contact Demand Construction to learn more about your eligibility!

How Net Energy Metering (NEM) Works

NEM is a billing arrangement that allows homeowners with residential solar to send excess energy back to the grid in exchange for energy credits, which can be used to offset electricity costs later. This means you can store energy virtually—using your solar production to cover future energy needs.

How NEM Works Throughout the Year:
🟡 During short winter days – Your solar system may generate less power, requiring you to pull energy from the grid.
🟡 On sunny days – Your panels may produce more energy than you use, and that extra power is sent to the grid.

Instead of wasting that extra power, NEM lets you bank those kilowatt-hours as credits, reducing or even eliminating your electricity bill.

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Why Net Metering is Essential for Solar Homeowners

🔋 Maximizes Your Solar Investment – Get paid for the excess power you produce and offset future energy costs.

💰 Lowers Your Electricity Bill – The more solar energy you generate, the fewer kilowatt-hours you need to buy from the utility.

⚡ Helps Balance Energy Needs Year-Round – Store virtual energy credits for times when your solar panels produce less.

🏡 Encourages Renewable Energy Growth – By incentivizing solar adoption, NEM plays a crucial role in expanding clean energy use.

How to Maximize Savings Under NEM 3.0

With lower export rates, the focus now shifts to self-consumption—using more of the energy you produce instead of sending it to the grid. Here’s how you can still maximize your solar savings:

🔋 Add Battery Storage – Store excess solar power and use it when the sun isn’t shining instead of relying on the grid.
⚡ Shift Energy Use to Peak Solar Hours – Run appliances like dishwashers, washing machines, and EV chargers while your solar system is actively generating power.
🏡 Install a Smart Energy Management System – Optimize when and how you use electricity based on real-time pricing.

At Demand Construction, we design solar-plus-battery systems that ensure you get the most out of your investment under new NEM policies.

 

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Is a Non-Export System Right for You?

With lower NEM credits, some homeowners are choosing non-export solar systems that store all generated energy in batteries instead of sending it to the grid.

Pros of a Non-Export System:
✅ Greater energy independence
✅ No reliance on utility company policies
✅ Protection from future changes in NEM regulations

Cons of a Non-Export System:
❌ Higher upfront cost for battery storage
❌ Requires active energy management for best results

Demand Construction can help you determine whether NEM-based solar or a non-export system is the best fit for your home.

Take Control of Your Energy Costs Today

Don’t wait for utility prices to rise again. Whether you want to optimize NEM credits or reduce your reliance on the grid altogether, Demand Construction has a solution for you.

🔆 See how much you can save—check your solar eligibility today!