1. The cells in the solar panels absorbs sunlight and generates electrical currents
2. The electrical current flows into the inverter which converts DC electricity to AC electricity
3. The inverter will direct the energy to power household appliances and direct any excess energy back to the grid
4. The Bidirectional meter will record the export of excess energy and import of energy from the grid

What is NEM?

• The existing policy in place is called Net Energy Metering (NEM).
• All energy produced during the day by the solar PV system will be prioritized for your own consumption.
• Any excess energy, that the solar produced and is not utilized will be exported back to the grid. At the end of the month, TNB will calculate the net difference between import and export.