Net Energy Metering (NEM)

Net Energy Metering (NEM):

A practice in which utilities credit you for the excess electricity generated by your solar panels, which you can then draw upon when your panels don’t produce enough electricity to match your use. With net metering, you effectively use the grid to “store” excess electricity for later use. (NEM is not available in all states. Some states have revised versions, i.e. NEM 2.0.)

Breaking Down  Net Energy Metering (NEM):

When excess electricity is produced by your solar system, it is sent back to the grid and the electric company must buy that energy from you. Customers that sell their extra energy to the electric company then uses that amount to offset their total electric bill.