Frequently Asked Question

What is Net Metering? 
Does my state have Net Metering?

Net metering is the method the utility company uses for billing the power consumed and produced at your home or business that has it own renewable energy system. The utility only bills you for the Net energy consumed during the billing period.

Allow me to explain with an example.

Before Net Metering the utility company was required by federal law to purchase the power you generatred with your renewable energy system. However, the law didn't say how much the utility company would have to pay you for the power your system generated. When you bought power from the grid you paid a retail price, for example $0.15 per kWh. If your renewable energy system produced more power then your home or business was consumming it would sell this power to the grid. The utilities were only paying the "avoided cost" or $0.01 to $0.02 per kWh. With numbers like that it is hard to justify a grid connected system. 

With Net Metering in place, the utility companies have to pay you the same retail price for the excess power your system generates. 

This actually simplified the billing for the utility companies. It most cases if you have a digital meter they remove it and give you the older style meter that has dials on its face. The digital meters require special programming to understand the power you are selling to the grid. Some digital meters without this custom programming will not reconize the power flow change in direction. They will continue to count up, not down when you sell them power. The older style meters will all change direction when you sell power back to the grid. 

Net Metering is a state law. So each state is a little different. Use the chart below as a helpful guide line.

**Chart Last Updated May 2001**

State Allowable Technology
and Size		 Allowable
Customer		 Statewide
Limit		 Treatment of
Net Excess
Generation (NEG)		 Authority Enacted Scope of Program Citation/Reference
Arizona Renewables and cogeneration
£100 kW		 All customer classes None NEG purchased at avoided cost Arizona Corporation Commission 1981 All IOUs and RECs PUC Order Decision 52345, Docket 81-045
Arkansas Renewables, fuel cells and microturbines
Residential £25 kW 
Commercial £100 kW		 All customer classes None TBD by Public Service Commission Legislature 2001 All utilities HB 2325, effective Oct. 2001
California Solar and wind
£1000 kW		 Residential and small commercial None Annual NEG granted to utilities Legislature 2001 All utilities Public Utilities Code Sec. 2827 (amended 04/01; effective through 01/01/03)
Colorado Wind and PV
3 kW, 10 kW		 Varies NA Varies Utility tariffs 1998 Four Colorado utilities PSCO Advice Letter 1265; PUC Decision C96-901[1]
Connecticut Renewables and fuel cells
(No limit per system)		 Residential customers None Monthly NEG purchased at avoided cost Legislature 1990, updated 1998 All IOUs,
No REC in state.		 CGS 16-243H; Public Act 98-28
Delaware Renewables
£25 kW		 Residential and commercial None Monthly NEG purchased at avoided cost Legislature 1999 All utilities Senate Amendment No. 1 to HB 10
District of Columbia Renewables, fuel cells, and microturbines
£100 kW		 All customer classes None Annual NEG * 2000 All utilities DSIRE
Georgia Solar, wind, fuel cells
Residential £10 kW
Commercial £100 kW		 All customer classes 0.2% of annual peak demand Monthly NEG or total generation purchased at avoided cost or higher rate if green priced Legislature 2001 All utilities SB93
Idaho Renewables and cogeneration
£100 kW		 Residential and small commercial (Idaho Power only) None Monthly NEG purchased at avoided cost Public Utility Commission 1980 IOUs only,
RECs are not rate-regulated		 Idaho PUC Order #16025 & #26750 (1997)

Tariff sheets 86-1 thru 86-7
Illinois Solar and wind
£40 kW		 All customer classes; Commonwealth Edison only 0.1% of annual peak demand NEG purchased at avoided cost Commonwealth Edison tariff 2000 Commonwealth Edison only Special billing experiment[1]
Indiana Renewables and cogeneration
£1,000 kWh/month		 All customer classes None Monthly NEG granted to utilities Public Utility Commission 1985 IOUs only,
RECs are not rate-regulated		 Indiana Administrative Code 4-4.1-7
Iowa Renewables and cogeneration
(No limit per system)		 All customer classes 105 MW Monthly NEG purchased at avoided cost Iowa Utility Board 1993 IOUs only, RECs are not rate-regulated[2] Iowa Administrative Code [199] Chapter 15.11(5)
Maine Renewables and fuel cells
£100 kW		 All customer classes None Annual NEG granted to utilities Public Utility Commission 1998 All utilities Order #98-621
RC of ME Chapter 36
Maryland Solar only
£80 kW		 Residential only 0.2% of 1998 peak Monthly NEG granted to utilities Legislature 1997 All utilities Article 78, Section 54M
Massachusetts Renewables and cogeneration
£60 kW		 All customer classes None Monthly NEG purchased at avoided cost Legislature 1997 All utilities Mass. Gen. L. ch. 164, §1G(g); Dept. of Tel. & Energy 97-111
Minnesota Renewables and cogeneration
£40 kW		 All customer classes None NEG purchased at utility average retail energy rate Legislature 1983 All utilities Minn. Stat. §216B.164
Montana Solar, wind and hydro
£50 kW		 All customer classes None Annual NEG granted to utilities at the end of each calendar year. Legislature 1999 All utilities SB 409
Nevada Solar and wind
£10 kW		 All customer classes First 100 customers for each utility Monthly or annual NEG granted to utilities Legislature 1997 All utilities Nevada Revised Statute Ch. 704
New Hampshire Solar, wind and hydro
£25 kW		 All customers classes 0.05% of utility's annual peak NEG credited to next month Legislature  1998 All utilities RSA 362-A:9 (HB 485)
New Jersey PV and wind
(no limit per system)		 Residential and small commercial 0.1% of peak or $2M annual financial impact Annualized NEG purchased at avoided cost Legislature 1999 All utilities AB 16. Electric Discount & Energy Competition Act
New Mexico Renewables and cogeneration
£10 kW		 All customer classes None NEG credited to next month, or monthly NEG purchased at avoided cost (utility choice) Public Utility Commission 1999 All utilities NMPUC Rule 571,
17 NMAC 10.571
New York Solar only
£10 kW		 Residential only 0.1% 1996 peak demand Annualized NEG purchased at avoided cost Legislature 1997 All utilities Laws of New York, 1997, Chapter 399
North Dakota Renewables and cogeneration
£100 kW		 All customer classes None Monthly NEG purchased at avoided cost Public Utility Commission 1991 IOUs only,
RECs are not rate-regulated		 North Dakota Admin. Code §69-09-07-09
Ohio Renewables, microturbines, and fuel cells
(No size limit)		 All customer classes 1.0% of aggregate customer demand NEG credited to next month Legislature 1999 All utilities S.B. 3
(effective 01/01/01)
Oklahoma Renewables and cogeneration
£100 kW and
£25,000 kWh/year		 All customer classes None Monthly NEG granted to utility Oklahoma Corporation Commission 1988 All IOUs and RECs OCC Order 326195
Oregon Solar, wind, fuel cell and hydro
£25 kW		 All customer classes 0.5% of peak demand Annual NEG granted to utiliity Legislature 1999 All utilities H.B. 3219
Pennsylvania Renewables and fuel cells
£10 kW		 Residential None Monthly NEG granted to utility Legislation 1998 All utilities 52 PA Code 57.34
Rhode Island Renewables and fuel cells
£25 kW		 All customer classes 1 MW for Narragansett Electric Company Annual NEG granted to utilities Public Utility Commission 1998 Narragansett Electric Company PUC Order Docket No. 2710
Texas Renewables only
£50 kW		 All customer classes None Monthly NEG purchased at avoided cost Public Utility Commission 1986 All IOUs and RECs PUC of Texas,
Substantive Rules, §23.66(f)(4)
Vermont PV, wind, fuel cells
£15 kW

Farm biogas
£100 kW

 All customer classes 1% of 1996 peak Annual NEG granted to utilities Legislature 1998 All utilities Sec. 2. 30 V.S.A. §219a
Virginia Solar, wind and hydro
Residential £10 kW
Non-residential £25 kW		 All customer classes 0.1% of peak of previous year Annual NEG granted to utilities (power purchase agreement is allowed) Legislature 1999 All utilities Virginia Assembly S1269
Approved by both Assembly and Senate 3/15/99
Washington Solar, wind, fuel cells and hydro
£25 kW		 All customer classes 0.1% of 1996 peak demand Annual NEG granted to utility Legislature 1998 All utilities Title 80 RCW
House Bill B2773
Wisconsin All technologies
£20 kW		 All customer classes None Monthly NEG purchased at retail rate for renewables, avoided cost for non-renewables Public Service Commission 1993 IOUs only,
RECs are not rate-regulated		 PSCW Order 6690-UR-107
Wyoming Solar, wind and hydro
£25 kW		 All customer classes None Annual NEG purchased at avoided cost Legislature 2001 All IOUs and RECs HB 195, Feb. 2001

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