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Introduction to the California Net Energy Metering Ratepayer Impacts Evaluation

Research or Whitepaper
NEM is an electricity tariff billing mechanism designed to facilitate the installation of renewable customer distributed generation (DG). Under NEM tariffs, customers receive a bill credit for generation that is exported to the electric grid during times when it is not serving onsite load. Bill credits for the excess generation are applied to a customer’s bill at the same retail rate (including generation, distribution, and transmission components) that the customer would have paid for energy consumption, according to their otherwise applicable rate schedule. This study also provides a separate evaluation of the NEM fuel cell program, which credits the generation only component of the rate for participating fuel cells that achieve targeted reductions in greenhouse gas emissions.