Under the NEM scheme, electricity produced from the installed Solar PV systems is primarily utilized for self-consumption. If there is insufficient Solar power produced, electricity usage is drawn from the local grid while any excess Solar energy generated is exported to the local grid and recorded by the NEM meter. This exported excess becomes a credit, calculated at the prevailing Displaced Cost prescribed by the Energy Commission. Your electricity bill is then net-off against this credit. The credit is allowed to rollover for 24 months, after which it will be forfeited.
Benefits of investing in NEM:
- Less electricity imported.
- Lower electricity cost.
- Hedge against future electricity tariff increase.
- Reduction of C02
- Contributing towards National Renewable Energy target.
Consumers in the domestic, commercial or industrial sectors are encouraged to apply for it. The 2017 NEM quota is currently opened and available.