Going solar is one of the smartest things a practical homeowner can do, both in terms of reducing energy costs and increasing home value. Installing solar can help you save on your energy bill and use the money elsewhere. How does solar energy work in helping you save money? The answer is Net Energy Metering or NEM. This system encourages homeowners to go solar by giving them credit. Credit if being given when their system generates more than what their home consumes. Excess energy generated is converted into credits.


If you are still wondering how Net Energy Metering works, just simply think of your regular energy meter spinning backwards when the sun is shining.

Another example is during the day when your electric consumption is low because there are lesser to no one left in the house since most are at work or school. Then energy being generated by your system during this time is being directed to the grid. This energy that are redirected then turns into credit towards our energy bill. That is via Net Metering


You will start experiencing the change when your system starts to generate energy more that your household’s consumption. The excess energy generated will be redirected to the grid that will convert into credit. Credits will not be converted to cash however, this will go against your energy bill. These credits will also be used during the time when your system is not generating energy. For example, during night time and when you have cloudy weather. Instead of paying regular bill on your consumption you can then use the credit that was generated by your system. This is called Net Metering Billing Arrangement. Your utility will keep track of your consumption and production on both a monthly and annual basis. The biggest change after you go solar will be the new statement you receive annually beginning around the first anniversary of your solar system’s interconnection to the power grid. You will receive then a what so called “true-up” statement that summarize your solar credits and electricity charges for the whole year. This will also include your energy consumption and energy your system generated. However, if your system generated more than what you consume, these credits will not roll over the next true-up period. Expect a year-to-year difference on your true-up statement since there is some natural inconsistency in the amount of energy your system will generate and how much your home can consume. Our exerts will provide you with a designed system of your own that will enable you to maximize its benefits. Making sure of a balanced energy generation vs. home consumption to avoid over production.

Difference between Net Metering, solar batteries and off-grid solar system

To sum up all the differences of between Net Metering, Solar Batteries and Off-Grid Solar System is that among the three, only Net metering generates credits for you to use and enjoy. While Solar batteries and Off-Grid Solar System doesn’t generate credit. Household can only use the energy that has been generated by their system. It is advisable to choose Net Metering Instead not only you can have credits, just in case that there is not enough energy generated due to unforeseen circumstances like prolonged cloudy weather you can still use energy in your household from the Grid.

Maximizing the benefit of Solar Energy Systems

To maximize the benefit of solar energy systems, we at Edison Energy believe in Net Metering system. Not only can it provide you credit from the excess energy your system has generated. It can also help your utility in minimizing energy generation using oil/gas. Because of this, your household is not the only one benefiting from solar aside from your utility is your community and lesser harm for the environment and contributes to climate change.