Net Metering in Michigan

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated November 24, 2015

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Michigan

    • Incentive Type:

      Net Metering

    • Start Date:

      05/26/2009

    • Eligible Renewable/Other Technologies:

      Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Municipal Solid Waste, Landfill Gas, Tidal, Wave, Hydroelectric (Small), Anaerobic Digestion

    • Applicable Sectors:

      Commercial, Industrial, Investor-Owned Utility, Local Government, Nonprofit, Municipal Utilities, Residential, Cooperative Utilities, Schools, State Government, Federal Government, Agricultural

    • Applicable Utilities:

      Investor-owned utilities, MPSC rate-regulated electric cooperatives, all alternative electric suppliers

    • System Capacity Limit:

      150 kW

    • Aggregate Capacity Limit:

      0.75% of utility’s peak load during previous year

    • Net Excess Generation:

      Credited to customer’s next bill at retail rate for systems 20 kW or less; credited to customer’s next bill at power supply component of retail rate for larger systems. Carries over indefinitely.

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      Not addressed

Summary

In October 2008, Michigan enacted P.A. 295, requiring the Michigan Public Service Commission (MPSC) to establish a statewide net metering program for renewable energy systems. On May 26, 2009 the MPSC issued an order formally adopting revised net metering and interconnection rules to implement P.A. 295 of 2008.

Availability

Michigan’s net metering law applies only to rate-regulated utilities and alternative electric suppliers. The designation “rate-regulated utility” presently includes investor-owned utilities and rural electric distribution cooperatives that have not opted for member regulation. As of April 2011, only Cherryland, Alger Delta, and Tri County electric cooperatives have opted for member regulation. Municipal utility rates are not regulated by the MPSC.

Eligible Technologies and System Size

Renewable energy systems using solar, wind, biomass, geothermal, anaerobic digester gas, landfill gas, municipal solid waste, and moving water are eligible for net metering. The definition of biomass is very broad and includes agricultural crops and crop wastes; energy crops; animal wastes; paper and pulp products; and a variety wood waste materials. Moving water technologies include those using waves, tides, and currents as well as traditional hydropower using water released through a dam.

Net metering billing practices are split into two distinct categories. All qualifying customer generators up to 20 kilowatts (kW) are eligible for “true” net metering, while most systems between 20 kW and 150 kW are eligible for “modified” net metering.*

In general, the capacity of an individual system is limited to that which will meet their own needs. The rules describe several options a customer can use to arrive at this value.

Aggregate Cap

True net metering is available until the aggregate net metered capacity reaches 0.5% of a utility’s peak load. Modified net metering is available until the aggregate net-metered capacity reaches an additional 0.25% of a utility’s peak load for systems of 150 kW or less and 0.25% for systems larger than 150 kW.

Nondiscriminatory Rates Requirement

Utilities must provide net metering customers with electric service at nondiscriminatory rates that are identical to those that would be charged if the customer were not participating in net metering.

Net Excess Generation

For systems of 20 kW or less, net excess generation (NEG) during a billing period may be carried forward to the next billing period at the retail rate.

Modified net metering (facilities up to 150 kW) allows NEG carry over at the power supply component of the retail rate (i.e., energy avoided cost) or the monthly average real-time locational marginal price for energy at the commercial pricing node within the electric provider’s distribution service territory each billing period.

Customers on time-of-use rates may carry forward NEG at the applicable retail rate for each time-of-use pricing period within a billing period.

NEG can be carried forward indefinitely.

Credits associated with modified net metering may not be applied against distribution charges.

Systems larger than 150 kW must pay standby charges. This practice does not meet the definition of net metering as it is generally understood, thus this summary considers only systems up to 150 kW as eligible for net metering.

Renewable Energy Credit Ownership

Customer-generators own the renewable energy credits (RECs) associated with electricity generated under the program.

Metering

Utilities serving more than 1 million customers (i.e., Consumers Energy & DTE Electric) are required, if necessary, to supply true net metering customers with a net metering compatible meter or meters at no cost to the customer. Utilities with fewer than 1 million customers must supply the appropriate meter or meters to the customer at cost, not to exceed the incremental cost above that for meters provided by the utility to similarly situated non-net metering customers. Metering configurations and cost allocations for modified net metering customers are slightly different (see R 460.648 for details).

Net metering application fees may not exceed $25 and the combined total of net metering application and interconnection review fees may not exceed $100.

Reporting

Annual net metering reports from individual utilities and alternative electricity suppliers are contained in Case U-15787, available through the PSC E-Docket System. 

Interconnection

Interconnection standards for systems up to 2 megawatts (MW) were adopted by the MPSC as part of the same administrative proceeding that addressed net metering. The forms and procedures are available here.

* Methane digesters up to 550 kW are eligible for “true” net metering or “modified” net metering, depending on its size. 

Authorities

    • Date Enacted:
      10/06/2008

    • Effective Date:
      10/06/2008

    • Date Enacted:
      05/26/2009

    • Effective Date:
      05/27/2009

    • Date Enacted:
      12/20/2012

Contact

  • Julie Baldwin

  • Organization:

    Michigan Public Service Commission

  • Address:

    P.O. Box 30221
    Lansing, MI 48909

  • Phone:

    (517) 284-8318

  • E-Mail:

Memos

Loading…

  • 11/24/2015 by Ben Inskeep

    Annual review; policy has not substantively changed; edited entry for clarity

Net Metering in New York

Net Metering

Last Updated April 8, 2017

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      New York

    • Incentive Type:

      Net Metering

    • Eligible Renewable/Other Technologies:

      Solar Photovoltaics, Wind (All), Biomass, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional

    • Applicable Utilities:

      Investor-owned utilities

    • System Capacity Limit:

      Solar: 25 kW for residential; 100 kW for farms; 2 MW for non-residential
      Wind: 25 kW for residential; 500 kW for farm-based; 2 MW for non-residential
      Micro-hydroelectric: 25 kW for residential; 2 MW for non-residential
      Fuel Cells: 10 kW for residential; 1.5 MW for non-residential
      Biogas: 2 MW (farm-based only)
      Micro-CHP: 10 kW (residential only)

    • Aggregate Capacity Limit:

      No specific aggregate capacity limit. It was previously set at 6% of utility’s 2005 demand for solar, farm-based biogas, fuel cells, micro-hydroelectric, and residential micro-CHP, and 0.3% of utility’s 2005 demand for wind.

    • Net Excess Generation:

      Existing Net metered Customers: Generally credited to customer’s next bill at retail rate (except avoided-cost rate for micro-CHP and fuel cells); excess for residential PV and wind and farm-based biogas is reconciled annually at avoided-cost rate; excess for micro-hydro, non-residential wind and solar, and residential micro-CHP and fuel cells carries over indefinitely
      Phase One transition tariffs: Credits carried over to the next monthly billing period, and over annual periods, however unused credits will be forfeited at the end of the contract.

    • Ownership of Renewable Energy Credits:

      Generally not eligible for trading or Tier I RES compliance with exceptions for Community Distributed Energy projects.

    • Meter Aggregation:

      Allowed for non-residential and farm-based customers with solar, wind, farm-based biogas, and micro-hydroelectric systems.
      Community net metering is allowed.

Incentives

This program has 1 Incentives

    • Technologies:
      Solar Photovoltaics, Wind (All), Hydroelectric (Small)

    • Sectors:
      Residential

    • Parameters:
      The system size has a maximum of 25.00 kW

Summary

NOTE: In March 2017, the NY Public Service Commission issued an order regarding the future of net metering in the state. The order is one of the major milestones in the Reforming the Energy Vision (REV) proceeding, and addresses the transitional steps from traditional net metering into a Value of Distributed Energy Resource (VDER) tariff that accurately values and compensates distributed energy resources. Starting March 9, 2017 distributed energy projects will transition into a VDER tariff in a phased process. All projects interconnected prior to March 9, 2017 will retain their previous compensation through net energy metering. 

Introduction

New York’s original net-metering law, enacted in 1997, applied only to residential photovoltaic (PV) systems up to 10 kilowatts (kW). Over the years, the law was expanded to include other forms of electric generation equipment including farm waste, wind, micro-hydro, fuel cell, and combined heat and power systems. Net metering is available on a first-come, first-served basis to customers of the state’s major investor-owned utilities, subject to technology, system size and aggregate capacity limitations. Net metering allows the electric customers who own eligible electricity generation system to offset their utility electricity bill on a volumetric basis from the electricity generated by the system owned by the customer.

In 2015, the Public Service Commission (PSC) initiated the Reforming the Energy Vision (REV) proceeding with a vision towards a comprehensive reform in the state’s electric utility practice and regulatory paradigm. The REV initiative seeks to create a next generation of utility business models that are customer-centric and driven by technological innovation and private investments to provide resilient, affordable, and clean energy in the State. As a part of the REV proceeding, the PSC recognized the need for the development of a more accurate method of valuing distributed energy resources beyond net metering.

In March 2017, the PSC published an order on transiting from compensating distributed energy resources (DER) through net metering to the development of Value of Distributed Energy Resource (VDER) tariffs that more accurately reflect the costs and benefits of DERs on the grid. The PSC order provides a gradual transition process from net metering to VDERs over phases to avoid drastic changes in the market.

Grandfathering and the transition plan

All distributed energy projects that were interconnected prior to March 9, 2017 will be grandfathered and will continue to be compensated through net energy metering as before, unless the customer opts for the VDER tariff.

Phase One: Phase One of the transition includes two components- i) Phase One Net Energy Metering (NEM) and ii) Phase One Value Stack. Phase One NEM is identical to the previous net energy metering except the term limit of the contract is set to 20 years. Starting March 9, 2017 until January 1, 2020 all the mass market DER projects interconnected to the grid will be compensated through Phase One NEM tariff. Remote net metered customers, large on-site, and community distributed generation projects that have already paid 25% of interconnection costs, or have an executed Standard Interconnection Contract will be compensated through the Phase One NEM. Projects that don’t qualify for the Phase One NEM will be compensated based on Phase One Value Stack tariff.

Phase One Value Stack is only available to technologies and projects that were previously eligible for net metering. The Value Stack tariff will be based on monetary crediting for net hourly electricity exported to the grid. Excess credit will be eligible for carry over to subsequent billing and annual periods. Projects eligible for the Value Stack will have a term length of 25 years from their in-service date. The Value Stack for net hourly electricity exported to the grid will be calculated based on the value of:

  1. Energy Value based on Day Ahead hourly zonal locational-based marginal price (LBMP),
  2.  Capacity Value based on retail capacity rate based on performance during the peak hour in the previous year
  3.  Environmental value based on the higher of the Clean Energy Standard Tier 1 Renewable Energy Credit (REC) price or the Social Cost of Carbon (SCC)
  4. Demand Reduction Value (DRV) and Locational System Relief Value (LSRV) based on de-averaging of utility marginal cost of service studies

Community Distributed Generation (CDG) projects on the Phase One Value Stack Tariff will also receive Market Transition Credit (MTC) equal to the difference between the retail rate and the value stack. The MTC capacity for CDG is allocated into three Tranche buckets with decreasing values from the base rate

Phase Two: On May 2017, the PSC will commence the discussion on Phase Two of the transition process.

Eligible Technologies 

The eligible technologies and the system size limits remain the same for the Phase One of the net metering transition process. Publicly-owned utilities are not obligated to offer net metering; however, PSEG Long Island offers net metering on terms similar to those in the state law. Below is listing of the system size limitations, organized by technology and eligible sector.

  • Solar: 25 kW for residential, 100 kW for farms, 2 MW for non-residential
  • Wind: 25 kW for residential, 500 kW for farm-based, and 2 MW for non-residential
  • Fuel Cells: 10 kW for residential, 1.5 MW for non-residential
  • Micro-hydroelectric: 25 kW for residential, 2 MW for non-residential
  • Biogas: 2 MW (farm-based only)
  • Micro-CHP: 10 kW (residential only)

Energy Storage projects paired with eligible DER will be eligible for compensation under Phase One NEM or Value Stack tariff for mass market on-site projects. Community Distribution Generation (CDG) and Remote Net metered (RNM) projects, or large on-site systems will be compensated at Value of Stack tariff.

Aggregate Capacity

The total amount of net metering available in the state is capped at aggregate limit determined by the Public Service Commission (PSC). The aggregate limit was previously set at 1.0%, which was tripled to 3% by PSC in October 2012, and doubled again in 2014 to 6% of the utility’s 2005 electric demand. In 2015, the PSC in response to utilities reaching the 6% aggregate capacity limit, allowed the aggregate capacity to float until the successor to net metering policy was developed.

The March 2017 PSC order on the net metering transition plan eliminated the previous aggregate cap based on a peak load calculation. The PSC instead provided that all the projects interconnected after March 9, 2017 should not impact more than 2% of each utility’s incremental net annual revenue. The provision is put in place to limit the impact of VDER tariff on non-participants.

As a way of monitoring the impacts of the DERs the PSC requires the utilities to report when they hit 85% of the recommended capacity size allocations for each of the utilities. This will provide the PSC time to determine the subsequent action if necessary.

CHGE O&R NGrid NYSEG CE RGE
MWs 30 25 100 20 90 5
85% capacity (MW) 25.50 21.25 85.00 17.00 76.50 4.25

Net Excess Generation

For most types of systems, customer net excess generation (NEG) in a given month is credited to the customer’s next bill at the utility’s retail rate. However, for residential micro-CHP and fuel cell systems NEG is credited at the utility’s avoided cost rate. A slightly different methodology using a monetary credit ($ as opposed to kWh/volumetric) is used for customers on demand meters. At the end of each annual billing cycle, most customers (i.e., residential PV and wind and farm-based wind and biogas systems) will be paid at the utility’s avoided-cost rate for any unused NEG. Compensation for unused NEG produced by non-residential wind and solar systems is not addressed by the statute, however, the New York Public Service Commission (PSC) determined in its February 2009 order that unused NEG for such systems should be carried forward from one year to the next. Likewise, residential micro-CHP and fuel cell customer-generators are not permitted to monetize NEG after a year or any other period, but may carry forward unused credits indefinitely. Recently enacted S.B. 1149 did not identify a specific annual reconciliation protocol for micro-hydroelectric facilities, but the recently approved utility tariffs provide for indefinite carryover.

In May 2011 the PSC issued an order addressing two aspects of the NEG crediting process for customer generators. First, the order requires utilities to adopt consistent NEG credit calculations that include all kWh-based customer charges beginning June 1, 2011. Prior to this, some utilities did not include certain charges (e.g., the System Benefits Charge (SBC) and Renewables Portfolio Standards (RPS) surcharge) in the calculation of NEG credits. Second, the order also requires utilities to allow customers eligible for an annual cash-out of unused NEG at avoided cost, such as residential solar customers, to make a one-time selection of the annual period in question. This provision will apply to both existing and new net metering customers and is intended to avoid circumstances where the time period used for the annual cash-out is disadvantageous for some customers (i.e., large amounts of NEG being cashed-out at a lower rate). Several utilities already permitted customer-generators to make such an election.

Any excess credit from VDER Phase One tariff can be carried over to next monthly billing period, including over the end of the annual period, however at the end of the contract these unused credits will be forfeited.

Remote Net Metering

In June 2011 the state enacted legislation (A.B. 6270) allowing eligible farm-based and non-residential customer-generators to engage in “remote” net metering of solar, wind, and farm-based biogas systems. Micro-hydroelectric facilities were added as eligible for this arrangement in August 2012. The law permits eligible customer-generators to designate net metering credits from equipment located on property which they own or lease to any other meter that is located on property owned or leased by the customer, and is within the same utility territory and load zone as the net metered facility. Credits will accrue to the highest use meter first, and as with standard net metering, excess credits may be carried forward from month to month. Revised utility tariffs incorporating this change for solar, wind, and farm-based biogas systems became effective December 1, 2011. The August 2012 extension to micro-hydroelectric customer-generators will require further tariff revisions.

In October 2015, the PSC issued an order requiring the utilities to i) allow customers to assign credits from multiple host accounts to one satellite account such that the sum of all the credits do not exceed 2MW per satellite account; and ii) permit the satellite accounts with less than 2MW in host account credits to be interconnected on site generation.

The legislation and subsequent PSC orders also establish rules relating to customer responsibility for interconnection costs (e.g., new meters, transformers, or other equipment) and limitations on such costs. Cost treatments vary by customer type and system size (see § 66-j and 66-l for details).

Community Net-Metering

In July 2015 the NY Public Service Commission (PSC) issued an order that established a Community Net-metering in the State. The community net-metering allows multiple customers subscribe and receive credits to the electricity produced from off-site renewable generation facility. This policy makes it possible for renters, low-income residents, and homeowners to receive credits for renewable energy who previously could not install renewable generation facility in their homes.

In general a community energy project requires a minimum of 10 members. In March 2017, the commission allowed a waiver for a minimum ten member requirement for community distributed generation projects that are located on the site of a property serving multiple residential or non-residential customers.  The group may include a single individual subscriber that has demand greater than 25kW, who will be limited to 40% of the total facility’s output. Other subscribers will be limited to individual demand less than 25kW, and their total energy use must aggregate to at least 60% of the facility’s output. The maximum size of the community energy system is limited to 2 MW. Any single entity, including facility developer, ESCO, municipal entity, business, non-profit, LLC, partnership, or other form of business or civic association can be the sponsor of the community energy facility. The sponsor will be responsible for building and operating the facility.

Implementation of the program is divided into two phases. First phase of the program will last till April 30, 2016, during which the community net metering will serve as an introductory phase. During this period, the projects will be limited to siting distributed generation in areas where it provides greatest locational benefits to the larger grid, and in areas that promote low-income customer participation. The second phase will begin in May 1st 2016 when the community net metering projects will fully implemented throughout the other utility service territories.

Environmental Attributes

New York Generation Attribute Tracking System (NYGATS) tracks the attributes of electricity generated in or imported into the State and eligible to create and certify Renewable Energy Credits (REC). 1 REC represents the environmental attributes of 1 MWh of electricity generated through a qualifying renewable energy source. REC can be traded as commodities to demonstrate compliance to the State’s Tier I Renewable Energy Standard requirement or retired voluntarily to claim the environmental attribute of renewable energy generation.

Under previous net metering and Renewable Portfolio Standard (RPS) policy, the issue of RECs generated by net metering customers was not addressed as New York did not have a standard REC market. The current Clean Energy Standard in New York includes a Renewable Energy Standard (RES) that requires the utilities comply with the requirements via purchase or RECs or through compliance payment.

Behind the meter projects that were previously eligible to bid into Renewable Portfolio Standard (RPS) Main Tier solicitations will not be eligible to bid into Tier 1 solicitation by NYSERDA (exemptions apply). No behind the meter projects will be eligible to bid into Tier 1 solicitation conducted by NYSERDA. The RECs from these projects will be provided to the system owners for voluntary retirement, they cannot be traded or exchanged. These RECs will not be eligible for compliance for Tier 1 RES requirement, however they will be counted towards overall Statewide 50% by 2030 renewable resource goal.

DER project enrolled in the Phase One NEM including on-site mass market, small wind projects, RNM, and on-site large projects will be ineligible to bid into RES Tier 1 solicitation and will not count towards the utility’s compliance mandate, it will instead be retired on customer’s account. RECs from Community Distributed Generation projects will be counted by default towards the Utility’s Tier 1 obligation unless the customer choose to opt out.

All the RECs from the customers interconnected on the Value Stack tariff will be transferred by default to the utility for compliance for Tier I for exchange of environmental value component. The customer may choose to retain the RECs however and forgo the credit from environmental value on the tariff.

Authorities

    • Date Enacted:
      (subsequently amended)

    • Date Enacted:
      02/13/2009

    • Effective Date:
      02/27/2009

    • Date Enacted:
      06/22/2009

    • Effective Date:
      07/01/2009 (generally)

    • Date Enacted:
      02/12/2010

    • Effective Date:
      02/26/2010

    • Date Enacted:
      05/23/2011

    • Effective Date:
      05/23/2011

    • Date Enacted:
      11/21/2011

    • Date Enacted:
      06/18/2012

    • Date Enacted:
      10/18/2012

    • Date Enacted:
      06/13/2013

    • Date Enacted:
      12/15/2014

    • Effective Date:
      01/02/2015

    • Date Enacted:
      03/09/2017

    • Effective Date:
      03/09/2017

Contact

  • Organization:

    New York State Department of Public Service

  • Address:

    Agency Building 3, Empire State Plaza
    Albany, NY 12223

  • Phone:

    (518) 486-2889

  • E-Mail:

Memos

Loading…

    • 04/08/2017 by Achyut Shrestha

      In September 2016, a petition was filed before the PSC requesting a limted waiver of the ten member minimum requirement for Community Distributed Generation projects. The waiver would allow community projects on residential properties encouraging on-site solar development. In March 2017, the PSC granted the waiver. THe ten member minimum requirement will not apply to CDG projects that are located on the site of a property serving multiple residential or non-residential customers.

    • 03/14/2017 by Achyut Shrestha

      In March 2017, the NY Public Service Commission issued an order regarding the future of net metering in the state. The order as one of the major milestones in the Reforming the Energy Vision (REV) proceeding stipulates steps to transition from traditional net metering into a robust Value of Distributed Energy Resource (VDER) tariffs that accurately values and compensates the distributed energy resources in the State.

    • 01/17/2017 by Achyut Shrestha

      On November 2016, the Public Service Commission increased net metering threshold from 1 MW to 2 MW for farm waste electric generating equipment.

    • 10/28/2015 by Achyut Shrestha

      On October 16, 2015 the NY Public Service Commission issued an order addressing two of the issues raised under remote net metering. Under “one host limitation” the utilities do not allow customers to assign multiple host accounts (site of generation) to one satellite account (remote site), and under “net metering limitation” the utilities prohibit interconnection of net metering generation at sites designated as satellite account. The Commission ordered the utilities to i) allow customers to assign credits from multiple host accounts to one satellite account such that sum of all the credits do not exceed 2MW per satellite account; and ii) permit the satellite accounts with less than 2MW in host account credits to be interconnected on site generation. (Case No 15-E-0267)

    • 10/27/2015 by Achyut Shrestha

      On October 16, 2015, the NY Public Service Commission denied the Orange and Rockland Utility’s petition to cease offering net-metering and interconnections once the 6% net metering cap was met. The Commission ordered the all the NY utilities to continue accepting the applications irregardless of the cap until the issue of net metering is ultimately addressed as a part of the NY REV.

    • 08/03/2015 by Achyut Shrestha

      In July 2015, the Orange and Rockland Utility (O&R) notified the Public Service Commission (PSC) that based on applications received it had exceeded its net metering cap set at 6% of 2005 peak load (62 MW). O&R has proposed PSC to treat applications beyond 6% cap as “buy all, sell all” arrangement, where the customers pay the electricity delivered to them at normal rates, and their exported electricity will be credited at avoided cost. O&R will continue to accept netmetering applications but will notify customers that the new requests will be treated under different rate treatment as determined in the future by the PSC. (Case 15-E-0407)

    • 07/23/2015 by Achyut Shrestha

      In July 2015, the NY Public Service Commission (PSC) issued an order that established a Community Net-metering in the State.

    • 06/26/2015 by Achyut Shrestha

      In Feb 2015 NY Public Service Commission (PSC) instituted a proceeding (case no 15-E-0082) to develop community net metering program in the State. Along with the proceeding the PSC provided proposed rules for implementing community net metering. The deadline to submit comments to the proposal ended in April 2015.

  • 05/21/2015 by Achyut Shrestha

    NY Public Service Commission order (Case 14-E-0422) institutes a Transition Plan to move away from volumetric credit into monetary crediting for non-demand remote net metered systems. The commission also has instituted another proceeding (Case 13-E-0267) to reconsider tariffs that restrict generation at satellite locations for a single host remote net metering arrangement.

Net Metering in Wisconsin

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated November 23, 2015

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Wisconsin

    • Incentive Type:

      Net Metering

    • Utilities:

      Algoma Utility Comm, Arcadia City of, City of Argyle, Bangor City of, City of Barron, Village of Belmont, Village of Benton, Village of Black Earth, City of Black River Falls, Bloomer Electric & Water Co, City of Boscobel, Brodhead Water & Lighting Comm, Village of Cadott, Village of Cashton, Cedarburg Light & Water Comm, Village of Centuria, Clark Electric Coop, City of Clintonville, City of Columbus, Consolidated Water Power Co, City of Cornell, City of Cuba City, Cumberland City of, Dahlberg Light & Power Co, City of Eagle River, City of Elkhorn, City of Elroy, City of Evansville, City of Fennimore, Florence Utility Comm, Village of Gresham, Hartford Electric, Village of Hazel Green, Hustisford Utilities, Jefferson Utilities, Juneau Utility Comm, City of Kaukauna, City of Kiel, La Farge Municipal Electric Co, Lake Mills Light & Water, City of Lodi, Madison Gas & Electric Co, Manitowoc Public Utilities, City of Marshfield, Village of Mazomanie, City of Medford, City of Menasha, Merrillan Village of, Mt Horeb Village of, Village of Muscoda, Village of New Glarus, City of New Holstein, City of New Lisbon, New London Electric&Water Util, Northern States Power Co – Wisconsin, Northwestern Wisconsin Elec Co, Oconomowoc Utilities, Oconto Falls Water & Light Comm, Village of Pardeeville, Pioneer Power and Light Co, City of Plymouth, Village of Prairie Du Sac, City of Princeton, Reedsburg Utility Comm, Rice Lake Utilities, City of Richland Center, City of River Falls, Rock Energy Cooperative, Village of Sauk City, Shawano Municipal Utilities, City of Sheboygan Falls, City of Shullsburg, Slinger Utilities, Spooner City of, Stoughton City of, Village of Stratford, Sturgeon Bay City of, Sun Prairie Water & Light Comm, Superior Water, Light and Power Co, Village of Trempealeau, Two Rivers Water & Light, Village of Viola, Waterloo Light & Water Comm, Village of Waunakee, Waupun Utilities, City of Westby, Whitehall Electric Utility, Wisconsin Dells Electric Util, Wisconsin Electric Power Co, Wisconsin Power & Light Co, WPPI Energy, Wisconsin Public Service Corp, Wisconsin Rapids W W & L Comm, Wonewoc Electric & Water Util, Westfield Electric Co

    • Eligible Renewable/Other Technologies:

      Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Municipal Solid Waste, Combined Heat & Power, Wind (Small), Hydroelectric (Small), Other Distributed Generation Technologies

    • Applicable Sectors:

      Commercial, Industrial, Residential

    • Applicable Utilities:

      Investor-owned utilities, municipal utilities

    • System Capacity Limit:

      20 kW (some utilities allow larger systems to net meter)

    • Aggregate Capacity Limit:

      No limit specified

    • Net Excess Generation:

      Varies by utility

    • Ownership of Renewable Energy Credits:

      Not addressed

    • Meter Aggregation:

      Not addressed

Summary

The Public Service Commission of Wisconsin (PSC) issued an order on January 26, 1982, requiring all regulated utilities to file tariffs allowing net metering to customers that generate electricity with systems up to 20 kilowatts (kW)* in capacity.

Eligibility and Availability

The order applies to investor-owned utilities and municipal utilities, but not to electric cooperatives. All distributed-generation (DG) systems, including renewable energy and combined heat and power (CHP) systems, are eligible. There is no limit on total enrollment.

Net Excess Generation

The PSC has not adopted administrative rules for net metering.** Utilities’ net-metering tariffs contain some variations. Customer net excess generation (NEG) is generally credited at the utility’s retail rate for renewable energy, and at the utility’s avoided-cost rate for non-renewable energy. NEG credit is carried over to the customer’s next bill. If NEG credit exceeds $25, then the utility must issue a check for the amount, payable to the customer.

In December 2011, the PSC approved a process for Xcel Energy to reconcile NEG credits to customers on an annual basis at the avoided-cost rate.

Investor-Owned Utility Net Metering Tariffs

For more information on net metering, refer to the applicable utility net metering tariffs listed below. Contact your utility or visit their website if their net metering tariff is not listed below.

* Some utilities allow net metering for systems larger than 20 kW. In these cases, excess generation rates, carry-over processes, and capacity limits vary by utility. These provisions are specified in the utility tariffs.

** Subsequent PSC decisions issued June 21, 1983 in docket numbers 05-ER-11, 05-ER-12 and 05-ER-13, further implemented Sections 201 and 210 of the federal Public Utility Regulatory Policy Act of 1978 (PURPA). These decisions were confirmed by an order issued September 18, 1992, in docket number 05-EP-6. This last order addresses net metering as it applies to Wisconsin’s investor-owned utilities.

 

Authorities

    • Date Enacted:
      09/18/1992

    • Date Enacted:
      12/22/2011

Contact

  • Organization:

    Public Service Commission of Wisconsin

  • Address:

    610 North Whitney Way
    Madison, WI 53707-7854

  • Phone:

    (608) 266-1124

Memos

Loading…

    • 11/23/2015 by Ben Inskeep

      Added links and brief synopsis of net metering tariffs for four investor-owned utilities in Wisconsin

  • 05/01/2015 by Heather Calderwood

    In April 2015 the Public Service Commission approved the Northern States Power Company of Wisconsin’s request for a community Solar Garden program – “Solar Connect Community”

Net Metering in Vermont

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated March 17, 2017

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Vermont

    • Incentive Type:

      Net Metering

    • Eligible Renewable/Other Technologies:

      Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional

    • Applicable Utilities:

      All utilities

    • System Capacity Limit:

      2.2 MW for military systems; 20 kW for micro-CHP

    • Aggregate Capacity Limit:

      None

    • Net Excess Generation:

      Credited to customer’s next bill at the blended residential rate; excess credits not used within 12 months of generation granted to utility

    • Ownership of Renewable Energy Credits:

      Utility owns RECs unless the customer elects to retain ownership. Customers granting RECs to the utility receive a positive 3 cent/kWh credit adjustor applicable to all system production for 10 years. Customers electing to retain ownership of their RECs receive a negative 3 cent/kWh credit adjustor in perpetuity.

    • Meter Aggregation:

      Group net metering allowed

Summary

Note: Vermont has adopted new net metering rules, effective January 1, 2017. Net metering customers with a complete Certificate of Public Good filed prior to this date are grandfathered under Vermont’s former net metering rules for a period of 10 years from the date of commissioning.

Any electric customer in Vermont may net meter after obtaining a Certificate of Public Good from the Vermont Public Service Board (PSB). Solar net metered systems 15 kilowatts (kW) or less follow an expedited process for the Certificate of Public Good, if the customer successfully completes registration (that is, informing the PSB about the project) and complies with his/her electric utility interconnection requirements. In this case, ten days after receiving the certificate of compliance with the interconnection requirements, a Certificate of Public Good is automatically “deemed issued,” and the customer may proceed with installation. An application for a Certificate of Public Good for Interconnected Net Metered Power Systems for all other systems that are less than 150 kW is available on the program website listed above. Systems greater than or equal to 150 kW must make a filing for the Certificate of Public Good.

Eligible Technologies

“Renewable energy” is defined as “energy produced using a technology that relies on a resource that is being consumed at a harvest rate at or below its natural regeneration rate.” Biogas from sewage-treatment plants and landfills, and anaerobic digestion of agricultural products, byproducts and wastes are explicitly included. (The term “renewable energy” explicitly excludes solid waste that is not agricultural or silvicultural, as well as nuclear fuel, coal, oil, propane, and natural gas.)

System Capacity Limit

Net metering is generally available to systems up to 500 kW in capacity that generate electricity using eligible renewable energy resources, including combined heat and power (CHP) systems that use biomass. CHP systems that use a non-renewable fuel are limited to 20 kW and must meet an efficiency standard.

Aggregate Capacity Limit

As of January 1, 2017, Vermont no longer has an aggregate cap on net metering. Previously, the cumulative capacity of net-metered systems was limited to 15% of a utility’s peak demand during 1996 or the peak demand during the most recent full calendar year, whichever was greater.

Net Excess Generation

Any customer net excess generation (NEG) is credited at the blended residential rate and carried over to the customer’s next bill. The blended residential rate is the lowest of the following:

  • For electric companies whose general residential service tariff does not include inclining block rates, the per-kWh charge in the company’s general residential service tariff;
  • For electric companies whose general residential service tariff does include inclining block rates, a blend of those rates determined by adding together all of the revenues to the company during the most recent calendar year from kWh sold under those block rates and dividing the sum by the total kWh sold by the company at those rates during the same year; or
  • The weighted average of the blended residential rates for all Vermont electric companies (weighted by the annual retail sales of the electric companies.)

Any NEG shall be used within twelve months of the month earned; if not, it is granted to the utility with no compensation for the customer. Beginning January 1, 2017, credits may no longer be applied to non-bypassable charges.

System Size and Siting Credit Adjustors

Effective for customers filing a Certificate of Public Good January 1, 2017 and later, credit adjustors will be applied to customer bills based on system size and siting. Adjustors are applied to all production, as measured by a separate production meter. Positive adjustors are applied for 10 years, while negative adjustors are applied in perpetuity.

The credit adjustors are as follows:

  • Category I Systems (non-hydro facilities 15 kW or less) = 1 cent per kWh
  • Category II Systems (non-hydro facilities greater than 15 kW and less than or equal to 150 kW, sited on a “preferred site”) = 1 cent per kWh
  • Category III Systems (non-hydro facilities greater than 150 kW and less than or equal to 500 kW, sited on a “preferred site”)
  • Category IV Systems (non-hydro facilities greater than 15 kW and less than or equal to 500 kW, not located on a “preferred site”)
  • Hydroelectric Facilities = 0 cents per kWh

A “preferred site” means one of the following:

  • A new or existing structure whose primary use is not the generation of electricity
  • A parking lot canopy over a paved parking lot
  • A tract previously developed for a use other than siting a plant on which a structure or impervious surface was lawfully in existence prior to July 1 of the year preceding the year in which an application  for a Certificate of Public Good was filed
  • A brownfield
  • A sanitary landfill
  • The disturbed portion of a gravel pit, quarry, or simlar site for the extraction of a mineral resource
  • A specific location designated in a duly adopted municipal plan for the siting of a renewable energy plant
  • A site listed on the National Priorities List, provided development will not compromise or interfere with remedial action on the site and the site is suitable for development of the plant
  • The same parcel as, or directly adjacent to, a customer that has been allocated more than 50% of the net metering system’s electrical output.

Renewable Energy Credit Ownership & Credit Adjustors

Beginning January 1, 2017, the utility owns the renewable energy credits (RECs) generated by a customer’s net-metered system, unless the customer elects not to transfer ownership of these RECs at the time of application. Customers transferring RECs to the utility will receive an additional monthly bill credit for 10 years equal to $0.03/kWh multiplied by all kWh produced by the system during the billing period. Customers electing to retain REC ownership will be charged each month in perpetuity $0.03/kWh multiplied by all kWh produced during the billing period.

Prior to 2017, net-metered customers retained default ownership of RECs unless the customer elected to transfer ownership to the utility.

Interconnection

Utilities may require a customer to comply with generation interconnection, safety and reliability requirements, as determined by the PSB, and may charge reasonable fees for interconnection, establishment, special metering, meter reading, accounting, account correcting, and account maintenance of net-metered systems. (Interconnection requirements for systems 150 kW or less are accessible at the program website listed above. Interconnection requirements for systems greater than 150 kW must follow the interconnection procedures specified in PSB Rule 5.500).

Grandfathering

Net metering systems with a complete Certificate of Public Good application filed with the PSB prior to January 1, 2017 (as long as the application was filed at a time when the electric company was accepting net metering systems, based on the state’s former aggregate capacity limit) are grandfathered under the state’s former net metering rules for a period of 10 years from the date of the system’s commissioning. For this 10-year period, credits may be applied to all bill charges, including non-bypassable charges. Following this period, customers will be credited for NEG at the blended residential rate and may not apply credits to non-bypassable charges. Grandfathered systems are not subject to any REC or system size/siting credit adjustors.

Group Net Metering

Vermont allows “group net metering.” In order to set up such a net metering system, the group must file with the PSB and other relevant parties, the following information:

  • The customers and meters that are to be included as part of the group;
  • The method for adding/removing meters and information regarding credit allocation to each customer-meter;
  • The contact person responsible for communications, but not those related to billing, payment, or disconnect; and
  • A dispute resolution process.

The utility is required to bill all customers of the group individually. For group net metering systems placed behind-the-meter, electricity used on-site will be netted one-to-one against the host customer’s consumption. All NEG will be credited at the applicable blended residential rate and allocated to group members. For group net metering systems directly interconnected to the utility grid (in front of the meter), electricity produced is allocated to group members and monetized at the applicable blended residential rate. REC and system size/siting credit adjustors also apply to group net metering systems.

Biennial Update Proceeding

The PSB must conduct a biennial update in 2018 and every two years thereafter to update REC adjustors, system size/siting adjustors, the statewide blended residential rate, and criteria applicable to the different categories of net metering systems.

Other Provisions

Customers are responsible for the cost of installing a mandatory production meter. Electric companies may also require customers to install advanced metering infrastructure prior to serving the net metering customer.

Vermont’s net metering rules provide electric companies with the authority to require energy efficiency audits for customers seeking to install net metering systems if they are commercial or industrial customers, or residential customers with historic energy consumption of 750 kWh or more per month.

History

Vermont’s original net metering legislation was enacted in 1998, and the law has been expanded and modified several times, most recently by H.B. 702 of 2014. This legislation created a process to result in the establishment of a revised net metering program by January 1, 2017. Specifically, the legislation required the Department of Public Service to prepare a report by October 1, 2014, evaluating the current state of net metering in Vermont. This report is available here. The PSB followed up this report with workshops involving interested parties, and finally, a rulemaking process. More information is available here.

Authorities

    • Date Enacted:
      2013 (subsequently amended)

    • Effective Date:
      01/01/2017

    • Date Enacted:
      2001 (subsequently amended)

Contact

Memos

Loading…

    • 03/17/2017 by Autumn Proudlove

      Vermont’s new net metering rules became effective 1/1/2017. The new rules include several credit adjustors based on REC ownership, system size, and siting. Systems filing a complete CPG prior to 1/1/2017 are grandfathered for 10 years from the date of commissioning. The new rules no longer contain an aggregate cap on net metering in the state and will now credit net excess generation at the applicable blended residential rate. All website and authorities have been updated.

  • 08/04/2015 by Autumn Proudlove

    Annual review; updated REC ownership details, as per H.B. 40, enacted in June 2015. Added a link to the Department of Public Service’s 2014 net metering report.

Net Metering in Minnesota

Net Metering

Last Updated November 23, 2015

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Minnesota

    • Incentive Type:

      Net Metering

    • Eligible Renewable/Other Technologies:

      Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Municipal Solid Waste, Combined Heat & Power, Landfill Gas, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Other Distributed Generation Technologies

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Tribal Government, Agricultural, Multifamily Residential, Institutional

    • Applicable Utilities:

      All utilities

    • System Capacity Limit:

      Net Metering Facility: 1 MW
      Community Garden Project: 5 MW

    • Aggregate Capacity Limit:

      No limit
      The Minnesota Public Utilities Commission *may* limit cumulative net metering generation once generation has reached 4% of annual retail electricity sales

    • Net Excess Generation:

      Systems under 40 kW: Reconciled monthly; customer may opt to receive payment or credit on next bill at the retail utility energy rate
      For systems 40 kW -1 MW, NEG is credited at the avoided cost rate, or customers may elect to be compensated in the form of a kWh credit. Excess credit will be reimbursed at the end of the calendar year at the avoided cost rate.

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      IOU customers may aggregate meters for net metering

Summary

Note: Ongoing issues related to Minnesota’s Community Solar Garden rules and program implementation are being considered in Docket No. E002/M-13-867. This entry will be updated as necessary to reflect any final changes arising from this Docket.

Minnesota’s net metering law, enacted in 1983, applies to all investor-owned utilities, municipal utilities, and electric cooperatives.

Minnesota has also finalized a methodology for a value of solar tariff in lieu of a net metering billing mechanism; however, no utility has elected to implement such an alternative tariff as of November 2015.

System Size

Customers with “qualifying facilities”* less than 1,000 kilowatts (kW) in capacity at investor-owned utilities and less than 40 kW in capacity at municipal utilities and electric cooperatives are eligible for net metering.

Investor-owned utilities may require customers with a net-metered facility of 40 kW or greater to limit total generation capacity to 120% of the customer’s on-site annual electric consumption for solar PV and other distributed generation systems, and to 120% of customer’s on-site maximum electric demand for wind generation systems.

Aggregate Cap

There is no aggregate cap limiting the total amount of systems eligible for net metering. However, an investor-owned utility may request the Minnesota Public Utilities Commission (MPUC) limit net metering once net-metered generation has reached 4% of the utility’s annual retail electricity sales. The MPUC has authority to limit the cumulative generation of net metered facilities “only if it determines that additional net metering obligations would cause significant rate impact, require significant measures to address reliability, or raise significant technical issues.”

Additional Fees and Charges

Investor-owned utilities are not permitted to impose a standby charge on net-metered facilities with a capacity of 100 kW or less.

A cooperative electric association or municipal utility may charge an additional fee to recover the fixed costs not already paid for by the customer through the customer’s existing billing arrangement.

Net Excess Generation

Each utility must compensate customers with systems less than 40 kW in size for net excess generation (NEG) at the “average retail utility energy rate,” defined as “the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales.” Compensation may take the form of an actual payment (i.e., check for purchase) for NEG or as a credit on the customer’s bill.

For systems sized 40 kW or greater but less than 1,000 kW in size, NEG will be credited at the avoided cost rate. Alternatively, a customer may elect to be compensated in the form of a kWh credit.

NEG credits will be reimbursed at the end of the calendar year at the avoided cost rate for customers of investor-owned utilities. NEG credits expire at the end of the year for customers of municipal utilities and electric cooperatives.

Meter Aggregation

Investor-owned utilities are required to offer meter aggregation for customers that request it. The meter must be owned or leased by the customer requesting aggregation, and must be located on contiguous property owned by the same customer. The total aggregate of all meters is subject to the same net metering size limitations described above. Utilities must comply with aggregation requests within 90 days. The aggregation of meters only applies to charges that use kWhs as the billing determinant. NEG is credited to the next monthly bill in the form of kWh credits. Utilities may request permission from the MPUC to charge administrative fees for meter aggregation.

Renewable Energy Credits

The customer-generator retains ownership of any RECs associated with the energy generated by a qualifying facility.

Community Solar Gardens

On December 12, 2014, Xcel Energy launched its Solar Rewards Community program pursuant to community solar legislation enacted in Minnesota. Subscribers can purchase subscriptions to a solar garden system developed by a Garden Operator who must have a state certificate of good standing. A garden must always have at least 5 subscribers, of which no single subscriber may have more than a 40% interest, and each subscription must be no less than 200 watts of the system’s generating capacity. Subscribers must be retail customers of the utility and located in the same county or a county contiguous to where the facility is located. There is no limit to the number of solar gardens which can be placed on a property, but no single garden can exceed 1 megawatt.

In August 2015, the MPUC approved a settlement agreement between Xcel Energy and a group of solar developers, placing an initial 5-MW cap on co-location for existing solar-garden applications. For applications submitted from September 25, 2015, through September 15, 2016, community solar gardens will be limited to 1 MW at a given site.

Subscribers will receive a credit on their electric bill for the energy produced by the garden. Subscribers are compensated at the applicable retail rate. Community projects may also be eligible for the solar performance based incentives offered by  Xcel Energy or the Department of Commerce.  The utility that offers the program may own the PV system, or another entity may own the project. Systems may be ground- or roof-mounted, must be located within the utility service territory, and may not exceed system capacity and generation limits that apply to all net-metered systems.

The term “qualifying facility” is defined in the federal Public Utility Regulatory Policies Act of 1978 (PURPA). It generally includes most renewable energy systems and combined heat and power (CHP) systems.

Authorities

    • Date Enacted:
      1983

    • Effective Date:
      1983

    • Effective Date:
      2000

    • Effective Date:
      2000

    • Date Enacted:
      07/22/2014

    • Effective Date:
      07/22/2014

    • Date Enacted:
      06/03/2015

    • Effective Date:
      06/03/2015

Contact

Memos

Loading…

    • 11/23/2015 by Ben Inskeep

      Updated entry with latest community solar program information, finalized new net metering system size and net excess generation credit rules, and edited entry for clarity.

    • 06/26/2015 by Heather Calderwood

      In June 2015, the Public Utility Commission signed a settlement between Xcel Energy and developers that would cap project size at 5 MW.

    • 06/18/2015 by Heather Calderwood

      Beginning July 1st, a municipal utility or a co-op can begin charging new net metering customers a “reasonable and appropriate” fee.

    • 05/19/2015 by Heather Calderwood

      Stearns Electric Association will offer community solar in St. Joseph to members this June.

  • 05/04/2015 by Heather Calderwood

    Xcel Energy’s Community Solar Garden policy has changed.

Net Metering in Rhode Island

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated January 17, 2017

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Rhode Island

    • Incentive Type:

      Net Metering

    • Administrator:

      Office of Energy Resources

    • Utilities:

      The Narragansett Electric Co

    • Eligible Renewable/Other Technologies:

      Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Ocean Thermal, Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Low Income Residential, Institutional

    • Applicable Utilities:

      Investor-owned utilities

    • System Capacity Limit:

      10 MW (effective September 2016)
      Systems must be sized to produce no more than an average of three years of annual consumption of energy at the account.

    • Aggregate Capacity Limit:

      3% of peak load for Block Island Power Company and Pascoag Utility District
      Other Utilities (National Grid): No aggregate cap.

    • Net Excess Generation:

      Credited at avoided cost; rolled over to next bill or purchased by utility

    • Ownership of Renewable Energy Credits:

      Not addressed

    • Meter Aggregation:

      Allowed

Summary

NOTE: HB 8354/SB 2450 omnibus renewable energy bill enacted on June 2016 amended the net metering statute in the Rhode Island to i) establish community virtual net metering, ii) increase system size capacity from 5 MW to 10 MW, iii) allow third party owned systems to be eligible for net metering, and other programmatic changes. 

Eligibility:

Rhode Island allows net metering for systems up to ten megawatts (MW) in capacity that are designed to generate up to 100% of the electricity that a home or other facility uses. The net metered systems size must be sized to produce no more than an average of previous or forecasted three years of annual consumption of the energy at the account. Systems that generate electricity using solar energy, wind energy, ocean-thermal energy, geothermal energy, small hydropower, biogas from anaerobic digestion, or fuel cells using any of these energy sources are eligible. All customers of electric distribution companies including public entities of the state are eligible. The aggregate amount of net-metered systems in Block Island Power Company and Pascoag Utility District is capped at 3% of the peak load for each utility district. In 2014, the aggregate cap for net metering for National Grid was eliminated. Net metered systems may be owned by the customer or be financed by a third party through a lease or power/credit purchase agreements. A third party engaged in financing net metered system is not considered a public utility.

Net Excess Generation:

The rate credited for kilowatt-hours (kWh) generated that do not exceed the customer’s kWh consumption for that billing period is equal to the utility’s retail rate (minus a very small conservation charge per kWh). Any excess kWh generation that exceeds 100% but limited up to 125% of the net-metering customers usage during the billing period will be paid excess renewable net-metering credits which is equal to the utilities avoided cost rate, which is calculated as electric distribution company’s standard offer service KWh charge for the rate class and Time of Use billing period, if applicable. The excess credit may be carried forward to the next bill or purchased by the utility (at its discretion). To facilitate the administration of billing, utilities may estimate a net-metered customer’s generation and consumption over a 12-month period. Otherwise, the rates (including customer charges and demand charges) that apply to a net-metered customer must be the same rates that would apply if the same customer were not net metering. Utilities may not impose any other charges on the net-metered customers. Net-metered customers are exempt from backup or standby rates commensurate with the size of the net-metered system. Utilities may recover through rates any revenue shortfall caused by this exemption.

Meter Aggregation:

A system generally must be owned by the customer of record and sited on the customer’s premises (in the same geographic location). However, facilities (1) owned by public entity* or multi-municipal collaborative or (2) owned and operated by a developer on behalf of the public entity or multi-municipal collaborative through “public entity net metering financing arrangement”** are eligible for meter aggregation.  Remote public entity and multi municipality collaborative that apply for remote net metering after December 31, 2018 will cease to receive distribution kWh credit beginning January 1, 2050. Meter aggregation is generally allowed, and special provisions exist to accommodate meter aggregation for farm-based systems that serve facilities in close proximity to each other.

Community Remote Net Metering:

H.B. 8354 enacted on June 2016 authorizes community net metering in the state. The community remote net metering system is defined as a facility using eligible net metered resource that allocates net metering credits to minimum of one account for low or moderate housing recipients accounts, or at least three eligible credit recipient customer accounts, providing that no more than 50% of the credits from the system are allocated to any single recipient, and at least 50% of credits are allocated to other recipients in an amount not to exceed which is produced by annually by a 25 kW system. For instance, if a community net metering system of 250kW assigns to 125 KW to one account, then the remaining 125 kW capacity should be distributed to remaining accounts at more than 25 kW.

The community net metered systems can be owned by one of the participating customers, or be financed by a third party through lease arrangements or power/credit purchase agreements. The total amount of community net metering is capped at 30 MW until the end of 2018, after which the PUC may decide to expand or modify the aggregate amount after administrative process. On December 2016, the PUC determined that the public housing authorities are considered public entities and are not subject to the 30 MW cap in the community net metering program.

 

Rate Design and Cost Allocation study

S.B.0081 enacted on June 2015 requires the Public Utilities Commission (PUC) to consider rate design and distribution cost allocation among rate classes taking into account the effects of net metering and increasing distributed energy resources. The PUC in effect, established a Docket 4545 and required the electric utilities are required to file revenue-neutral allocated cost of service study of all rate classes and propose new rates for all customers in each rate class. On January 2016, the PUC approved National Grid’s request to withdraw their proposed rate change filing determining that no rate revision was required at this time. The PUC however, determined that it was important to continue to review the issues raised in the proceeding, including rate design, net metering, and effects of distributed generation on the grid. The proceeding can be accessed at Docket 4600.

*A  “public entity” is defined as the municipalities, wastewater treatment facilities, public transit agencies or any water distributing plant or system.

**A “public entity net metering financing arrangement” is defined as an arrangement between a public entity or multi-municipal collaborative and a private entity to facilitate the financing and operation of a net-metered system. Such systems are owned and operated by the private entity and must be located on property owned or controlled by the public entity or one of the municipalities.

Authorities

    • Date Enacted:
      06/29/2011

    • Effective Date:
      07/29/2011

    • Date Enacted:
      06/30/2014

    • Effective Date:
      06/30/2014

    • Expiration Date:
      06/30/2019

    • Date Enacted:
      06/16/2015

    • Effective Date:
      06/16/2015

    • Date Enacted:
      06/27/2016

    • Effective Date:
      06/27/2016

Contact

  • Organization:

    Rhode Island Public Utilities Commission

  • Address:

    89 Jefferson Boulevard
    Warwick, RI 02888

  • Phone:

    (401) 941-4500

Memos

Loading…

    • 01/17/2017 by Achyut Shrestha

      On December 2016, the PUC determined that the public housing authorities are considered public entities and are not subject to the 30 MW cap in the community net metering program.

    • 07/08/2016 by Achyut Shrestha

      HB 8354 enacted on June 2016 amended the net metering statutes in the state to establish i) community virtual net metering in Rhode Island, ii) increase system size capacity from 5 MW to 10 MW, iii) allow third party owned systems to be eligible for net metering. Total amount of community net metering is capped at 30 MW until the end of 2018.

    • 07/08/2016 by Achyut Shrestha

      HB 8354 enacted on June 2016 establishes community virtual net metering in Rhode Island. The program priotirzes community net metering access to low and moderate income households. Total amount of community net metering is capped at 30 MW until the end of 2018.

    • 12/02/2015 by Achyut Shrestha

       H.B. 7727 passed June 2014, removed the aggregate capacity limit of 3% of peak load for all utilities except for Block Island Power Company and Pascoag Utility District. The bill also eliminated the 2 MW of reserved net metering requirement for small projects less than 50 kW in size.

    • 06/18/2015 by Achyut Shrestha

      S.B. 0081 has been approved by the Governor.

  • 06/11/2015 by Achyut Shrestha

    RI legislature passed bill S0081 that requires the Public Utilities Commission (PUC) to open a docket to consider rate design and distribution cost allocation among rate classes taking in account the effects of net metering and increasing distributed energy resources. Electric utilities are required to file revenue-neutral allocated cost of service study of all rate classes and propose new rates for all customers in each rate class. The PUC shall issue an order before March 2016, and the new rates would take effect after April 2016. The bill currently is before the Governor for approval.

Net Metering in Pennsylvania

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated January 23, 2017

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Pennsylvania

    • Incentive Type:

      Net Metering

    • Administrator:

      Pennsylvania Public Utilities Commission (PUC)

    • Start Date:

      02/28/2005

    • Utilities:

      Citizens Electric Co, Duquesne Light Co, Metropolitan Edison Co, Pennsylvania Electric Co, PPL Electric Utilities Corp, Pennsylvania Power Co, PECO Energy Co, Pike County Light & Power Co, UGI Utilities, Inc, Wellsborough Electric Co, West Penn Power Co

    • Eligible Renewable/Other Technologies:

      Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Municipal Solid Waste, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Landfill Gas, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels, Other Distributed Generation Technologies

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional

    • Applicable Utilities:

      Investor-owned utilities

    • System Capacity Limit:

      50 kW for Residential
      3 MW for Non-residential
      5 MW for micro-grid and emergency systems

    • Aggregate Capacity Limit:

      No limit specified

    • Net Excess Generation:

      Credited to customer’s next bill at full retail rate; reconciled annually at “price-to-compare”

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      Virtual meter aggregation allowed

Summary

NOTE: On October 2016, the PA Public Service Commission (PUC) issued a second final rulemaking order amending net metering and Alternative Energy Portfolio Standards (AEPS) regulations. Changes include clarifying provisions for meter aggregation, revisions to the interconnection rules and other minor amendments. The documents associated with the case can be accessed at Docket L-2014-2404361.

In 2006 the PA Public Utilities Commission (PUC) adopted net-metering rules and interconnection standards for net-metered systems and other forms of distributed generation (DG) pursuant to the Alternative Energy Portfolio Standards (AEPS) Act of 2004. In 2007, H.B. 1203 amended AEPS and expanded net metering. Revised rules consistent with these amendments were adopted by the Pennsylvania Public Utilities Commission (PUC), effective November 29, 2008. The PUC updated the net-metering rules (Docket No. M-2011-2249441) in 2012 approving the use of third-party ownership models (i.e., system leases or retail power purchase agreements). On October 2016, the PUC updated the regulations for net metering and AEPS following more than two years of regulatory proceeding. Changes included clarifying provisions for meter aggregation, revisions to interconnection rules, and other minor amendments.

Eligibility and Availability

In Pennsylvania, investor-owned utilities must offer net metering to i) residential customers that generate electricity with systems up to 50 kilowatts (kW) in capacity; ii) nonresidential customers with systems up to 3 megawatts (MW) in capacity; and iii) customers with systems greater than 3 MW but no more than 5 MW who make their systems available to the grid during emergencies, or where a micro-grid is in place in order to maintain critical infrastructure. Systems with name plate capacity of 500 KW must receive prior approval from the Public Utility Commission to net meter.

Systems eligible for net metering include those that generate electricity using photovoltaics (PV), solar-thermal energy, wind energy, hydropower, geothermal energy, biomass energy, fuel cells, combined heat and power (CHP), municipal solid waste, waste coal, coal-mine methane, other forms of distributed generation (DG) and certain demand-side management technologies.

It is important to note that electric generation suppliers (EGSs) in Pennsylvania are permitted but not required to offer net metering. Thus, customers who choose an electricity supplier other than their utility or Default Service Provider (DSP) must check with the supplier to see if it offers net metering service. Net metering is available when any portion of the electricity generated is used to offset on-site consumption. The electric utility is not allowed to own or operate an net-metered alternative energy system.

Utilities must provide net metering at nondiscriminatory rates identical with respect to rate structure, retail rate components, and any monthly charges to the rates charged to non-net-metered customers. Utilities may not charge net-metered customers any fees or other charges that do not apply to non-net-metered customers, except that are specifically authorized by the PUC. Furthermore, utilities may not require customers to install any additional equipment or carry liability insurance.

Net excess generation

Net metering is achieved using a single, bi-directional meter that can measure and record the flow of electricity in both directions at the same rate. Net excess generation (NEG) is carried forward and credited to the customer’s next bill at the full retail kilowatt-hour rate, which include generation, transmission, and distribution charges. Customer-generators are compensated for remaining NEG at the utility’s “price-to-compare” at the end of the year. The price-to-compare includes the generation and transmission components — but not the distribution component — of a utility’s retail rate. In order to reconcile net metering with Pennsylvania’s broader renewable energy goals, the “year” referenced above is defined to coincide with the compliance year (June 1 – May 31) used for Pennsylvania’s Alternative Energy Portfolio Standard (AEPS).

Environmental attributes 

Customers retain ownership of alternative-energy credits (commonly referred to as “renewable-energy credits” or “RECs” when associated with renewable energy), unless there is a contract with an express provision that assigns REC ownership to another entity, or unless the customer expressly rejects REC ownership. A unit of REC represents the environmental attributes of 1 MWh of electricity generated from a qualified alternative energy source. If a net-metered customer chooses to take ownership or transfer ownership of alternative-energy credits, then the customer is responsible for installing metering equipment required to measure alternative-energy credits.* Net metered customers may contact a third party aggregator who will bundle RECs from multiple customers to facilitate the sale of RECs in the market.

Meter aggregation

Pennsylvania’s rules allow meter aggregation on properties owned or leased and operated by the customer generator. This primarily benefit farms and businesses that are multiple buildings with separate electric meters but under one account. Aggregation is limited to meters within the same electric distribution company’s service territory that are located on properties within two miles of the boundaries of the customer generator’s property. All of the electric meters to be aggregated must belong to the same individual or legal entity. In order to qualify, the customer generator must have an on-site electric load at the location of the generating facility. A generation system without an on-site load are not eligible to aggregate meters that are off-site; without an on-site independent load, the system would not qualify for net-metering and be could be treated as a merchant generator.

The utility must provide the necessary equipment for physical meter aggregation, but the customer must pay the costs. In addition, “virtual meter aggregation” is allowed for properties owned or leased and operated by a customer and located within two miles of the boundaries of the customer’s property and within a single utility’s service territory. For virtual meter aggregation, the customer is responsible only for any incremental expense involved in processing the account on a virtual meter aggregation basis.

*In November 2008, amended rules for the Pennsylvania Alternative Energy Portfolio Standard (AEPS) took effect. These rules exempt PV systems of 15 kW or less from a requirement that alternative energy credit (AEC) certification be verified by metered data, and instead provide a more general instruction that it be verified by the system administrator. Thus, despite the reference to “required” equipment that remains in the net metering rules, small solar facilities may not be required to install additional metering equipment in order to generate AEPS eligible credits.

**Anaerobic digesters used by farms to comply with the Chesapeake Watershed Implement Plan or the Nutrient Management Act are exempt from this system size cap.  

Authorities

    • Date Enacted:
      11/30/2004

    • Date Enacted:
      06/22/2006

    • Effective Date:
      11/29/2008

    • Date Enacted:
      03/29/2012

    • Effective Date:
      03/29/2012

    • Effective Date:
      11/09/2008

    • Date Enacted:
      10/27/2016

    • Effective Date:
      11/19/2016

    • Expiration Date:
      11/19/2016

Contact

  • Organization:

    Pennsylvania Public Utility Commission

  • Address:

    P.O. Box 3265
    Harrisburg, PA 17105-3265

  • Phone:

    (717) 425-7584

  • E-Mail:

Memos

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    • 01/23/2017 by Achyut Shrestha

      On October 2016, the PA Public Service Commission (PUC) issued a second final rulemaking order amending net metering and Alternative Energy Portfolio Standards (AEPS) regulations. The DSIRE summary has been updated to reflect the modifications.

    • 06/01/2016 by Achyut Shrestha

      On May 2016, the IRRC rejected the 200% net metering system cap established by the PUC. The PUC may rescind the regulation or resubmit it to IRCC for another review within 40 days.

    • 02/17/2016 by Achyut Shrestha

       On February 2016, the PA Public Service Commission (PUC) issued a final rulemaking order amending its net metering regulations to provide clarity and to comply with the statutes. Changes include clarifying provisions for meter aggregation, creating system size limit to 200% of annual on-site use, clarifying the compensation policies, and other minor amendments.

    • 09/30/2015 by Achyut Shrestha

      PA Public Utilities Commission report on the status of the Net metering and Interconnection for the period of 2013-2015 can be accessed here.

    • 06/29/2015 by Achyut Shrestha

      In April 2015 PA Public Utility Commission proposed net metering system size cap of 200% for on-site generation. The PUC ended public comment on the rules at the end of May, and the draft will be subject to 18 months of reviews by state lawmakers and regulators before it is finalized. The documents associated with the case can be accessed at Docket L-2014-2404361

  • 03/30/2015 by Achyut Shrestha

    In Feb 2014, the PUC proposed changes to the State’s Alternative Energy Portfolio Standard, Interconnection, and Net-metering rules. The documents associated with the case can be accessed at Docket L-2014-2404361.

Net Metering in Maryland

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated July 12, 2016

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Maryland

    • Incentive Type:

      Net Metering

    • Eligible Renewable/Other Technologies:

      Solar Photovoltaics, Wind (All), Biomass, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional

    • Applicable Utilities:

      All utilities

    • System Capacity Limit:

      2 MW (30 kW for micro-CHP); also limited to that needed to meet 200% of baseline customer electricity usage

    • Aggregate Capacity Limit:

      1,500 MW (~10% of 2014 peak demand)

    • Net Excess Generation:

      Credited to customer’s next bill at retail rate; reconciled annually in April at the commodity energy supply rate

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      Allowed for agricultural customers, non-profit organizations, and municipal governments or their affiliates

Summary

 NOTE: In June 2016, the Maryland Public Service Commission (PSC) voted to adopt final regulations for the Community Solar Pilot Program. The regulations were drafted in November 2015 pursuant to the Community Solar Pilot Program enacted by the state legislature in May 2015. The final regulations establish the pilot program with an emphasis on providing benefits for low and moderate income customers. This DSIRE post will be updated soon after the final regulations are posted in the Maryland Code

Maryland’s net-metering law has been expanded several times since it was originally enacted in 1997. In their current form, the rules apply to all utilities — investor-owned utilities (IOUs), electric cooperatives and municipal utilities. Residents, businesses, schools or government entities with systems that generate electricity using solar, wind, biomass, fuel cell, closed-conduit hydroelectric, and micro-CHP resources are eligible for net metering. The law permits outright ownership by the customer-generators as well as third-party ownership structures (e.g., leases and power purchase agreements). The provisions allowing for micro-CHP systems (H.B. 1057) and certain third-party ownership structures (S.B. 981) were added in May 2009 and took effect July 1, 2009. Net metering was extended to fuel cell electricity generation systems in May 2010 (H.B. 821) and closed-conduit hydroelectric facilities in April 2011 (S.B. 271).

Other important details of Maryland’s net metering policy include:

  • Net metering is available statewide until the aggregate capacity of all net-metered systems reaches 1,500 MW. This limit is approximately 10% of the peak demand in 2014. The aggregate limit on net metering was 34.7 MW prior to the 2007 amendments. The local utility may however limit the installation of distributed generation if the total generation in the network is beyond the threshold as provided in the State’s  interconnection rules.
  • System size is generally limited to 2 MW, except micro-CHP resources are limited to 30 kilowatts (kW). Systems must be primarily intended to offset all or a portion of a customer’s on-site energy requirements and are limited in size to that needed to meet 200% of the customer’s baseline annual electricity use.
  • Net excess generation (NEG) is generally carried over as a kilowatt-hour credit (i.e., at the retail rate) for 12 months. Compensation for any NEG remaining in a customer’s account after a 12-month period ending in April of each year is paid to the customer at the commodity energy supply rate.
  •  Customers own and have title to all renewable-energy credits (REC) associated with electricity generation by net-metered systems.
  • Meter aggregation (either physical or virtual) is permitted for customers that use electrical service for agriculture, as well as non-profit organizations and municipal governments or their affiliates.
  • The PSC must file with the Maryland General Assembly detailed annual reports (see 2014 Net Metering Report) describing the status of the state’s net-metering program.

Utilities must install a meter at a customer’s facility capable of measuring the flow of electricity in both direction (if necessary), and must offer net metering through a tariff or contract at non-discriminatory rates compared to those offered to customers that do not net meter. The net-metered customers are typically required to pay a monthly customer charge regardless of the amount of electricity generated. However the customers are billed only for the energy that they use, netted against the amount generated by the customer. SB 353 enacted in May 2015, allows a person or a company who is installing a solar generation facility on the customer’s property to submit application for interconnection with the electric distribution facility. While the solar installer might accept payment prior to the installation, they must refund the payment if the application for interconnection is denied.

Virtual Net Metering

HB 1087 enacted on May 2015 authorizes the Public Service Commission (PSC) to establish a three year pilot program for community solar projects in the State. Community solar projects must be sized 2 MW or less, and must have at least 2 subscribers. Customers of all rates classes including residential, commercial, and people in leases properties can participate in the community solar project. Value of electricity generated by the solar system is credited to its subscribers through virtual net-metering. Individual subscriber may not receive credit for more than 200% of the subscriber’s baseline annual usage. Individual subscriptions are capped at 200 kW, and must be less than 60% of the total subscription of the particular community solar system.

Community solar energy system must be located in the same electric service territory as its subscribers. Any unsubscribed electricity from the community solar projects is sold to the electric company at the electric company’s avoided cost. The legislation allows any third party to finance, build or operate a community solar project. The PSC is required to adopt regulations to implement the pilot program before May 15, 2016. The PSC must also in consultation with the Maryland Energy Administration convene a stakeholder workgroup to study the benefits and costs of the pilot program and make recommendations on the advisability of establishing a permanent program by July 1, 2019. Total solar capacity installed under this pilot program shall count towards the total state net-metering cap of 1,500 MW.

Customers with systems that meet all applicable safety and performance standards established by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL) and any other PSC requirements may not be required by utilities to install additional controls, to perform or pay for additional tests, or to purchase additional liability insurance.

Authorities

    • Date Enacted:
      1997 (subsequently amended)

    • Date Enacted:
      08/16/2011

    • Effective Date:
      02/20/2012 (most recent amendments)

    • Date Enacted:
      05/12/2015

    • Effective Date:
      07/01/2015

    • Date Enacted:
      05/12/2015

    • Effective Date:
      10/01/2015

Contact

Memos

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    • 07/12/2016 by Achyut Shrestha

      H.B. 440 enacted on May 2016 amends the net metering regulations by requiring electric companies to issue final approval within 20 days of completion of the installation process and submission of paperwork. It requires electric companies to interconnect at least 90% of the installation processes completed during the year.

    • 11/20/2015 by Achyut Shrestha

      In November 2015 the MD Public Service Commission published its draft regulations on how the Community Solar Pilot Program would be implemented in the State. The pilot community solar program was enacted by the state legislature in May 2015. Public comments on the proposed regulations are due by Demeber 4, 2015.  More information is available at the admin docket RM56.  On February 2016, the MD PUC published final regulations to establish community solar pilot program with emphasis on providing benefits for low and moderate income customers. The regulations will be published in the Maryland Register and will receive public comments for 30 days after its initial publication

    • 05/20/2015 by Achyut Shrestha
      2015 legislative session in Maryland enacted two bills HB 1087, and SB 353 that made changes to the State’s netmetering and interconnection policies. HB 1087 (same as SB 398) establishes three year Community Solar Pilot program in the State. SB 353 requires the solar installer to refund the prior payment to the customer if the application for interconnection is denied.

    • 04/21/2015 by Achyut Shrestha

      SB 353 passed on April 2015 allows a person or a company who is installing a solar generation facility on the customer’s property to submit application for interconnection with the electric distribution facility. While the solar installer might accept payment prior to the installation, they must refund the payment if the application for interconnection is denied. The bill is currently presented to the Governor for approval.

  • 04/21/2015 by Achyut Shrestha

    HB 1087 passed on April 2015 authorizes the Public Service Commission (PSC) to establish a three year pilot program for community solar projects in the State. The bill is currently presented to the Governor for approval.

Net Metering in New Jersey

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated November 9, 2016

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      New Jersey

    • Incentive Type:

      Net Metering

    • Utilities:

      Atlantic City Electric Co, Jersey Central Power & Lt Co, Public Service Elec & Gas Co, Rockland Electric Co

    • Eligible Renewable/Other Technologies:

      Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Landfill Gas, Tidal, Wave, Wind (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Tribal Government, Agricultural, Institutional

    • Applicable Utilities:

      Investor-owned utilities (electric distribution companies), electric suppliers

    • System Capacity Limit:

      System must be sized so that energy production does not exceed customer’s annual on-site energy consumption

    • Aggregate Capacity Limit:

      No limit specified but BPU may limit to 2.9% total annual kWh sold in the State by each electric power supplier during prior one year period

    • Net Excess Generation:

      Generally credited to customer’s next bill at retail rate; excess reconciled annually at avoided-cost rate

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      Only for public entities (state and local governments, local agencies, and school districts)

Summary

Eligibility:

New Jersey’s net-metering rules require state’s investor-owned utilities and energy suppliers (and certain competitive municipal utilities and electric cooperatives) to offer net metering at non-discriminatory rates to residential, commercial and industrial customers. Systems that generate electricity using solar, wind, geothermal, wave, tidal, landfill gas or sustainable biomass resources, including fuel cells (all “Class I” technologies under the state RPS), are eligible. In January 2010 A.B. 3520 removed the individual system size cap of 2 MW formerly contained on the Board of Public Utilities (BPU) rules, and the necessary rule changes were made effective in July 2010. System size of renewable energy facility is limited to that needed to meet annual on-site electric demand. S.B. 2420 enacted in August 2015 authorizes Board of Public Utilities (BPU) to limit net metering to 2.9% of the total annual kWh sold in the State by each electric power supplier during prior one year period. The legislation instead of providing a firm aggregate limit on net metering, it authorizes the BPU to cease offering net metering if this capacity is reached.  BPU may continue to allow net metering even if this threshold is reached.

Aside for public buildings (see below), the renewable energy facility should be located within the property boundaries or be located geographically next to each other. Each of the renewable generation facility can only be net-metered with one customer.

Net Excess Generation:
A single metering arrangement is preferred. According to the statute, customer-generators have several compensation options for net excess generation (NEG), as listed below. The latter two options were added by S.B. 2936 in January 2008.

  • Customer-generator receives month-to-month credit for NEG at the full retail rate and is compensated for remaining NEG at the avoided-cost of wholesale power at the end of an annualized period.
  • Customer-generator is compensated for all NEG on a real-time basis according to the PJM power pool real-time locational marginal pricing rate, adjusted for losses by the respective zone in the PJM.
  • Customer generator may enter into a bilateral agreement with their electric supplier or service provider for the sale and purchase of NEG. Real-time crediting is permitted, subject to the applicable PJM rules.

In addition to the real-time crediting options described above, S.B. 2936 also: (1) expanded the list of eligible customers to include industrial and large commercial customers; (2) extended net metering to all systems that generate electricity using “Class I” renewable-energy resources; and (3) allowed utilities to recover the costs of “any new net meters, upgraded net meters, system reinforcements or upgrades, and interconnection costs” either through their regulated rates or from net-metered customers.

A separate rule making proceeding completed in March 2009 allows customer-generators to select any month of the year to begin their annualized period. This rule applies to all net metering customers, regardless of whether they began net metering prior to March 2, 2009 when the rule took effect. The choice of an annualized period is generally permanent unless the utility voluntarily accepts the customer’s choice of a new annualized period.

Renewable Attributes:
Customers eligible for net metering retain ownership of all renewable-energy credits (RECs) associated with the electricity they generate. Utilities are required to report net metering enrollment reports to the BPU twice annually, one covering January – June and other covering July – December. The reports must contain information detailing estimated customer generation supplied to the distribution grid, estimated grid electricity supplied to net metered customers, the number of customer that received payments for annual NEG, and the total dollar amount paid to net metering customers for annual NEG by month.

Meter Aggregation:

In July 2012, New Jersey enacted legislation (S.B. 1925) requiring electric utilities to allow public entities such as state and local governments, local agencies and school districts to engage in “net metering aggregation” of solar facilities. However, the rules implemented do not meet the definition of aggregate net metering as typically defined.  In order to qualify for net metering aggregation, the solar facility must be on property owned by the customer, be owned and operated by the single customer, and with the exception of state entities, be located within the customer’s territorial jurisdiction. For state entity projects, all facilities must be located within 5 miles of one another. In addition, for all customers all facilities must be located within the territory of the same electric utility, be served by the same basic generation service provider or electric power supplier, and all facilities must be within the same customer class of the applicable electric utility tariff. The customer-generator (or host meter) receives credit for excess generation at the retail rate; meters other than the host customer are credited at the wholesale rate at the end of a designated annualized period. Third party meter aggregation is allowed.

For further information, please contact the New Jersey Office of Clean Energy or consult the program web site for the appropriate contact person at your utility.

Authorities

    • Date Enacted:
      1999 (subsequently amended)

    • Effective Date:
      1999

    • Date Enacted:
      09/13/2004

    • Effective Date:
      10/04/2004

    • Date Enacted:
      07/23/2012

    • Effective Date:
      07/23/2012

    • Date Enacted:
      08/10/2015

    • Effective Date:
      08/10/2015

Contact

Memos

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    • 11/09/2016 by Achyut Shrestha

      S.B. 2420 enacted in August 2015 authorizes Board of Public Utilities (BPU) to limit net metering to 2.9% of the total annual kWh sold in the State by each electric power supplier during prior one year period. The legislation instead of providing a firm aggregate limit on net metering, it authorizes the BPU to cease offering net metering if this capacity is reached. BPU may continue to allow net metering even if this threshold is reached. Previously,  the BPU was permitted to allow utilities to cease offering net metering if the statewide enrolled capacity exceeded 2.5% of peak electric demand. (Note that the metric for the system cap changed from peak electric demand to total annual kWh).

    • 06/26/2015 by Achyut Shrestha

      S.B. 2420 enrolled on June 25, 2015 authorizes Board of Public Utilities (BPU) to limit net metering to 2.9% of the total annual kWh sold in the State by each electric power supplier during prior one year period. The bill is currently presented before the Governor for approval. There is no current set cap for net metering in NJ, but the statue allows the BPU to limit net metering customers to 2.5% of the peak demand. Total netmetered systems in NJ have long surpassed the 2.5% limit, and BPU has allowed netmetering beyond this percentage.

    • Loading memos…

Net Metering in Florida

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated November 9, 2015

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Florida

    • Incentive Type:

      Net Metering

    • Eligible Renewable/Other Technologies:

      Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Hydrogen, Combined Heat & Power, Tidal, Wave, Ocean Thermal, Wind (Small), Hydroelectric (Small)

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Tribal Government, Agricultural, Institutional

    • Applicable Utilities:

      All Utilities

    • System Capacity Limit:

      2 MW

    • Aggregate Capacity Limit:

      No limit specified

    • Net Excess Generation:

      Credited to customer’s next bill at retail rate; excess reconciled annually at avoided-cost rate

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      Not allowed

Summary

The Florida Public Service Commission (PSC) adopted rules for net metering and interconnection for renewable-energy systems up to 2 MW in capacity for investor owned utilities and also requires municipal utilities and electric cooperatives to offer net metering without stipulating standards. Net metering is available to customers who generate electricity using solar energy, geothermal energy, wind energy, biomass energy, ocean energy, hydrogen, waste heat or hydroelectric power.
Utilities must file annual reports with the Florida PSC indicating the number of customer-generators and the size, type and location of their renewable energy systems, the aggregate capacity of net-metered generation, the amount of energy delivered to and generated from interconnected customers, and the total energy payments made to interconnected customers. These reports are available here.

Net Excess Generation

Customer net excess generation (NEG) is carried forward at the utility’s retail rate (i.e., as a kilowatt-hour credit) to a customer’s next bill for up to 12 months. At the end of a 12-month billing period, the utility pays the customer for any remaining NEG at the utility’s avoided-cost rate.

Renewable Energy Credit Ownership
Renewable energy credits (RECs) are the property of the system owner, and customers may sell RECs back to the utility. There is no stated aggregate capacity limit for net-metered systems.

History

In June 2008, Florida enacted legislation (H.B. 7135) confirming that the PSC had the authority to adopt the March 2008 rules related to interconnection and net metering for investor-owned utilities.* In addition, H.B. 7135 required municipal utilities and electric cooperatives to “develop a standardized interconnection agreement and net metering program for customer-owned renewable generation” by July 1, 2009.** However, the law does not provide clear standards or define net metering for municipal utilities and electric cooperatives. Municipal utilities and electric cooperatives are required to file an annual report with the PSC detailing customer participation, although the PSC does not have direct authority over these utilities.

* While the PSC regulates investor-owned utilities, individual utilities have different forms for net metering and interconnection applications. Customers should visit their utility web site for more information and for appropriate net metering and interconnection application forms.** Prior to the enactment of H.B. 7135, several municipal and cooperative utilities — including Lakeland Electric, JEA and Orlando Utilities Commission — voluntarily offered net metering to their customers. For information on the current net metering programs offered by these utilities, see their web sites: JEA Net Metering, Orlando Utilities Commission Net Metering

. The full list of 47 municipal and cooperative utilities offering net metering are available on the PSC’s website.

Authorities

    • Date Enacted:
      3/4/2008

    • Effective Date:
      4/7/2008

    • Date Enacted:
      6/25/2008

    • Effective Date:
      7/01/2008

Contact

  • Organization:

    Florida Public Service Commission

  • Address:

    2540 Shumard Oak Blvd .
    Tallahassee, FL 32399-0850

  • Phone:

    (850) 413-6600

Memos

Loading…

  • 11/09/2015 by Ethan Case

    Reviewed, no major changes.