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Solar

NEM (Net Energy Metering)

A billing system that credits solar owners for excess electricity sent to the grid, often at retail rate. NEM 2.0 and NEM 3.0 refer to different versions of these rules, with NEM 3.0 in California reducing export credits and encouraging battery storage.

Example

Under NEM 2.0, excess solar earned full retail credit; NEM 3.0 uses time-of-use export rates.

Related Terms

Net MeteringTime-of-UseBattery Storage