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What Is Net Energy Metering (NEM)?

Feb 5th 21

What is Net Metering?

Net Metering

Net energy metering (NEM) is an energy monitoring program for homeowners with solar photovoltaic (PV) panels, that allows homeowners to earn energy credits towards their electricity bill. By entering into a net metering program agreement with your power company, you can earn net energy credits towards your final “True-up” bill. It may be easier if you picture the grid as a giant battery that you can store your energy on until you need it. If you store enough solar energy, then you will not need to worry about buying anymore; however, if you consume more energy than you are producing you will need to buy that excess energy net back from the grid.

Net Energy Metering Gif

During the day, when sunlight is most abundant, your solar photovoltaic (PV) panels will generate more solar energy. Any excess energy will be sent back to the grid which will earn energy credits for you. At night, when you are using more power than you generate, you will start to use more energy from the grid. These charges can be covered by your solar credits earned, if you produce more energy than you consume throughout the year. If you have at least 1 years’ worth of energy bill statements, you can estimate how much energy you would need each year. If you track your net energy metering throughout the year, you can keep lowering your energy bills drastically.


Common Myths

Does This Mean I Am Off-Grid?

A lot of customers who take full advantage of net metering start to see how little they are relying on the grid and start to think about life off-the-grid. While there are some benefits to this, there are also some serious drawbacks. You are also not able to take part in the net metering program once you have gone off-grid. Make sure that you explore all off-grid pro’s and con’s before deciding to cut your ties from the grid.

Making Money Off Net Metering

The most common myth with net metering, is that you can earn money from selling energy back to the grid. Net metering solar energy will not earn you cash for energy; however, it can earn you credits towards your monthly energy bill. In summer months, when you are producing more energy than you are consuming, you are earning credits that will help balance out the winter months when you are consuming more energy than you produce. Every 12 months, at your solar interconnection anniversary, your power company will review how much energy was used and they will send you a statement with your final “True-up” bill.

More Panels Means More Savings

At Infinity Energy, we want to make sure we are lowering your bills so that solar makes sense for you. For this reason, Infinity Energy asks for your energy usage over the last year so we can get you the right amount of solar PV panels for your home. Getting more panels than you need can cost you more money up front and you may never get to see the added savings from having more panels. If you perfectly balance the amount of energy you use each year, you can find the perfect number of panels that keep your energy costs low, while producing enough energy for you and your family.


With the help of our energy advisor’s, and your average annual energy requirements, you can figure out how many solar panels will be needed to supply your home with enough energy to avoid high energy bills. Energy usage, over the years, has followed a predictable trend that shows us when the most net energy is being produced or consumed. In general, more energy is consumed during winter months while more energy is produced during the summer months. In the image below you can see, over the course of a year, the difference in energy production and consumption of each month.

NEM Graph

How Much Will I Save?

With the solar net metering program, the customer gains a certain amount of control over their energy bill. Your energy bill will always have a minimum delivery and energy charge; however, with net metering you can monitor your solar energy production vs your energy consumption on a month-to-month basis, to earn energy credits towards your final “true-up” bill. Here are some more helpful tips on ways you can save energy (and money) while working from home.

Infinity Energy will work with potential customers to find the best financing choice available, to make sure that you are paying less than your current energy bill. If you are interested in finding out how much you can save on your energy bill, then contact us at 888-244-2513 or fill out the form for a free quote.

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