Why Are My NEM Charges So High?

Ever wondered why your NEM charges seem sky-high even with solar panels? Let's break down how Net Energy Metering (NEM) works and what might be driving those costs up.

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How NEM Works

Net Energy Metering (NEM) is like a give-and-take system with your utility company. When your solar panels crank out more juice than you need, the extra power goes back to the grid, and you earn credits. These credits can then offset your future electricity use.

NEM can slash your energy costs and sometimes even give you a zero or negative balance on your bill. For more nitty-gritty details, check out our net energy metering article.

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Why Are Your NEM Charges So High?

Ever wondered why your Net Energy Metering (NEM) charges are through the roof? Let's break it down so you can get a grip on your energy usage and save some bucks.

Here are two big reasons why your NEM charges might be higher than you expected.

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Using Too Much Energy

One major reason for high NEM charges is simply using too much electricity. If your household is guzzling more power than your solar panels can produce, you'll end up pulling extra energy from the grid. And guess what?

That extra energy isn't free. Keeping an eye on your energy usage and tweaking your habits can help cut down those charges.

Want to see how your energy habits have changed since you got solar panels? Check out our comparison of electric bills before and after solar panels. It’ll show you where you can make some tweaks to save more.

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Bad Energy Habits

Another culprit behind high NEM charges is inefficient energy use.

Things like running energy-hungry appliances during peak hours, not using energy-efficient gadgets, or skipping maintenance on your solar system can all add up. By making smarter choices, you can lower your energy consumption and, in turn, your NEM charges.

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Try running your big appliances during off-peak hours to take advantage of lower rates. For more tips on managing your energy, check out our article on why your distribution charge is so high.

Understanding these factors can help you get a handle on your NEM charges and make the most of your solar energy system. For more info on NEM, dive into our articles on net energy metering, NEM 2.0, and NEM 3.0.