Net metering allows customers with eligible renewable energy systems to receive bill credits for all power generated up to 125 percent of the on-site consumption during a billing period. Public entities (municipal, state, quasi-state) are allowed to enter into virtual net metering arrangements with renewable energy developers for up to 10 MW per project site.
For more information on net metering, please contact Chris Kearns at email@example.com.
Net metering requires electric distribution companies to credit power produced by renewable energy systems installed behind a customer meter. To participate in net metering, a renewable energy system must be sited on the customer’s premises, with certain “virtual net metering” exceptions for public sector projects, farms, affordable housing, and residential projects. Eligible customer-sited systems must be sized to meet on-site loads, based on a three-year average of electricity consumption at the property. Customers receive credit at the electric distribution company’s avoided cost rate for excess generation produced by a net-metered system, up to 125 percent of the customer’s own consumption during a billing period. Net metering was enacted in 2011; the state limit on net metering, formerly 3 percent of the electric distribution company’s historical peak load (1,932 MW as of 2013), was removed in 2014.