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Net Metering & Energy Storage

Net Metering Batteries Explained

Energy storage (or commonly known as battery storage) offers commercial energy consumers flexibility in managing energy consumption and an alternate power supply in the event the grid goes down. The use of battery storage is usually designed around one of two strategies; demand shaving, or solar PV over-production.  Demand shaving is a strategy which uses the selective discharge of stored battery energy to reduce or ‘shave’ the peak demand of utility power. Net metering batteries explained with solar fulfills that promise offering ultimate energy flexibility.

More Information about Net Metering

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How Net Metering works

net metering batteries explained

Net energy metering (NEM) is a policy in which utility companies are obligated to pay solar customers a state-determined rate for excess energy produced, has become central to the solar business model in many parts of the U.S. Net metering in California allows homeowners, businesses and commercial facilities to receive bill credits for the excess electricity that their solar panels produce as long as the system is less than 1,000 kilowatts (1MW).

With net metering, electric utility customers who install solar typically save tens of thousands of dollars on electricity costs over the lifetime of their solar panels.

Net Metering and Energy Storage

  • Energy storage devices paired with Solar or other NEM generation facilities shall be exempt from the most burdensome utility reviews and fees.  Customers with efficient systems shall receive 100% of the NEM credits.
  • Residential-scale NEM-paired storage systems under 10kWac don’t have to be sized to customer demand or the NEM generator.  There are also some requirements for measuring grid energy drawn into storage.
  • Storage systems over 10kWac with maximum power output less than 150% of solar system capacity must install a meter costing up to $600 to ensure NEM credits apply to solar output only.
net metering batteries explained for energy storage consumers

In California, the California Public Utilities Commission (CPUC) policy provides for the economic use of battery backup in conjunction with solar and other forms of renewable energy generation.  California’s existing and prospective solar customers as well as consumers with uneven power usage or high demand charges may benefit by pairing energy storage with solar or other renewable generation.

CPUC policy states that solar and other NEM-eligible systems with batteries constitute a single generating unit that qualifies for all the benefits of Net Metering. Specifically:

  • Larger NEM-paired storage systems will be on a the NEM-MT tariff, and must pay an application fee of $800.  They will still get NEM credits for net generated solar energy, but they may also be subject fees for standby charges, distribution studies and upgrades.

You can view the CPUC’s policy here.

Learn more about Net Metering Batteries Explained

Net Metering Batteries is capable of providing various grid services that support renewable integration like frequency and voltage regulation. Additionally, the use of storage technologies can defer the hefty costs associated with upgrading transmission and distribution infrastructure. It provides PV owners with a self-use option that removes utility net metering rates from the equation, mitigating losses and shortening paybacks for the system. If you're interested in learning more about Net Metering Batteries Explained, please contact us today!