Net metering
Encyclopedia
Net metering is an electricity
policy for consumer
s who own (generally small) renewable energy
facilities (such as wind
, solar power
or home fuel cell
s) or V2G electric vehicles. "Net", in this context, is used in the sense of meaning "what remains after deductions" — in this case, the deduction of any energy outflows from metered energy inflows. Under net metering, a system owner receives retail
credit for at least a portion of the electricity they generate.
Most electricity meter
s accurately record in both directions, allowing a no-cost method of effectively banking excess electricity production for future credit. However, the rules vary significantly by country and possibly state/province: if net metering is available, if and how long you can keep your banked credits, and how much the credits are worth (retail/wholesale). Most net metering laws involve monthly roll over of kWh credits, a small monthly connection fee, require monthly payment of deficits (i.e. normal electric bill), and annual settlement of any residual credit. Unlike a Feed-in Tariff
or time of use metering (TOU), net metering can be implemented solely as an accounting procedure, and requires no special metering, or even any prior arrangement or notification.
Net Metering is generally a consumer-based renewable energy incentive. While it is important to have Net Metering available for any consumer that interconnects their renewable generator to the grid, this form of renewable incentive places the burdens of pioneering renewable energy primarily upon fragmented consumers. Often over-burdened energy agencies are not providing incentives on a consistent basis and it is difficult for individuals to negotiate with large institutions to recover their Net Metering credits and/or rebates for using renewable energy.
In the U.S.A., as part of the Energy Policy Act of 2005
, under Sec. 1251, all public electric utilities are now required to make available upon request net metering to their customers.:
In Canada
, some Canadian provinces have net metering programs.
The United Kingdom
government is reluctant to introduce the net metering principle because of complications in paying and refunding the value added tax
that is payable on electricity, but pilot projects are underway in some areas.
that is programmed to determine electricity usage any time during the day. Time-of-use allows utility rates and charges to be assessed based on when the electricity was used (i.e., day/night and seasonal rates). Typically the production cost of electricity is highest during the daytime peak usage period, and low during the night, when usage is low.
Time of use metering is a significant issue for renewable-energy sources, since, for example, solar power
systems tend to produce energy during the daytime peak-price period, and produce little or no power during the night period, when price is low.
Market rate metering systems will be implemented in California starting in 2006 and under the terms of California's net metering rules will be applicable to qualifying photovoltaic and wind systems. Under California law the payback for surplus electricity sent to the grid must be equal to the (variable, in this case) price charged at that time. It can never be negative, meaning you cannot make money from selling the electricity back. If you generate more electricity than you use then over a period of a month you will be billed zero and not make any money, in effect you give away your extra energy if you do not use it.
Net metering enables small systems to result in zero annual net cost to the consumer provided that the consumer is able to shift demand loads to a lower price time, such as by chilling water at a low cost time for later use in air conditioning, or by charging a battery electric vehicle
during off-peak times, while the electricity generated at peak demand time can be sent to the grid rather than used locally (see Vehicle-to-grid
). No credit is given for annual surplus production.
allows net metering for up to 500 kW, however credits can only be carried for 12 consecutive months. Should a consumer establish a credit where they generate more than they consume for 8 months and use up the credits in the 10th month then the 12 month period begins again from the date that the next credit is shown on an invoice. Any unused credits remaining at the end of 12 consecutive months of a consumer being in a credit situation are cleared at the end of that billing.
serviced by BC Hydro are allowed net metering for up to 50 kW. At each annual anniversary the customer is paid 8.16 Cents per KWh if there is a net export of power. Systems over 50 kW are covered under the Standing Offer Program. FortisBC which serves an area in South Central BC also allows net-metering for up to 50 kW. Customers are paid their existing retail rate for any net energy they produce. The City of New Westminster which has its own electrical utility does not currently allow net-metering.
http://www.bcuc.com/Documents/Arguments/2008/DOC_20602_12-19_BCH_Final-Submission.pdf
allows net metering for installations up to 100 kW. Credits from excess generated power can be carried over until March at which time any excess credits are lost.
scheme was extended another four years up to end of 2006. Net-metering has proved to be a cheap, easy to administer and
effective way of stimulating the deployment of PV in Denmark; however the relative short time window of the arrangement has so
far prevented it from reaching its full potential. During the political negotiations in the fall of 2005 the net-metering for privately
owned PV systems was made permanent.
.
, only three states do not allow net metering, plus Washington D.C., twenty one have no limit on the number of subscribers using net metering. Only two, Arizona and Ohio, have no specific wattage limit on the power limit for each subscriber (see table). Colorado, Maryland, New Jersey and Pennsylvania are considered the most favorable states for net metering, as they are the only states to receive an "A" rating from the Network for New Energy Choices in 2007, 2008 and 2009.
Note: Some additional minor variations not listed in this table may apply. N/A = Not available. Lost = Excess electricity credit or credit not claimed is granted to utility. Retail rate = Final sale price of electricity. Avoided-cost = "Wholesale" price of electricity (cost to the utility). * = Depending on utility. ** = Massachusetts distinguishes policies for different "classes" of systems. *** = Only available to customers of Austin Energy
or Green Mountain Energy (Green Mountain Energy is not a utility but a retail electric provider; according to www.powertochoose.com, Green Mountain prices are twice the average retail price).
Under this arrangement, two uni-directional meters are installed—one records electricity drawn from the grid, and the other records excess electricity generated and fed back into the grid. The user pays retail rate for the electricity they use, and the power provider purchases their excess generation at its avoided cost (wholesale rate). There may be a significant difference between the retail rate the user pays and the power provider's avoided cost.
Germany, Spain, some States in the USA and other countries, on the other hand, have adopted a price schedule, or Feed-in Tariff
(FIT), whereby customers get paid for any electricity they generate from renewable energy on their premises. The actual electricity being generated is counted on a separate meter, not just the surplus they feed back to the grid. In Germany, for the solar power generated, a feed-in tariff is being paid in order to boost solar power (figure from 2009). Germany once paid several times the retail rate for solar but has successfully reduced the rates drastically while actual installation of solar has grown exponentially at the same time due to installed cost reductions. Wind energy, in contrast, only receives around a half of the domestic retail rate, because the German system pays what each source costs (including a reasonable profit margin).
, such as solar panel
s must be coupled with an electrical inverter
to convert the output to alternating current
, for use with conventional appliances. The phase of the outgoing power must be synchronized with the grid, and a mechanism must be included to disconnect the feed in the event of grid failure. This is for safety - for example, workers repairing downed power lines must be protected from "downstream" sources, in addition to being disconnected from the main "upstream" distribution grid.
and is applied to someone who uses an alternative energy source to illegally supply electricity back to a public utility grid. If equipment is used which circumvents safety systems it is extremely dangerous to workers repairing power lines.
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
policy for consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
s who own (generally small) renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
facilities (such as wind
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
, solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
or home fuel cell
Home fuel cell
A home fuel cell, also called micro combined heat and power and microgeneration, is a residential-scaled clean energy system. A home fuel cell is an alternative energy technology that increases efficiency by simultaneously generating power and heat from one unit, on-site within a home...
s) or V2G electric vehicles. "Net", in this context, is used in the sense of meaning "what remains after deductions" — in this case, the deduction of any energy outflows from metered energy inflows. Under net metering, a system owner receives retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
credit for at least a portion of the electricity they generate.
Most electricity meter
Electricity meter
An electricity meter or energy meter is a device that measures the amount of electric energy consumed by a residence, business, or an electrically powered device....
s accurately record in both directions, allowing a no-cost method of effectively banking excess electricity production for future credit. However, the rules vary significantly by country and possibly state/province: if net metering is available, if and how long you can keep your banked credits, and how much the credits are worth (retail/wholesale). Most net metering laws involve monthly roll over of kWh credits, a small monthly connection fee, require monthly payment of deficits (i.e. normal electric bill), and annual settlement of any residual credit. Unlike a Feed-in Tariff
Feed-in Tariff
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...
or time of use metering (TOU), net metering can be implemented solely as an accounting procedure, and requires no special metering, or even any prior arrangement or notification.
Net Metering is generally a consumer-based renewable energy incentive. While it is important to have Net Metering available for any consumer that interconnects their renewable generator to the grid, this form of renewable incentive places the burdens of pioneering renewable energy primarily upon fragmented consumers. Often over-burdened energy agencies are not providing incentives on a consistent basis and it is difficult for individuals to negotiate with large institutions to recover their Net Metering credits and/or rebates for using renewable energy.
In the U.S.A., as part of the Energy Policy Act of 2005
Energy Policy Act of 2005
The Energy Policy Act of 2005 is a bill passed by the United States Congress on July 29, 2005, and signed into law by President George W. Bush on August 8, 2005, at Sandia National Laboratories in Albuquerque, New Mexico...
, under Sec. 1251, all public electric utilities are now required to make available upon request net metering to their customers.:
In Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, some Canadian provinces have net metering programs.
The United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
government is reluctant to introduce the net metering principle because of complications in paying and refunding the value added tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
that is payable on electricity, but pilot projects are underway in some areas.
Time of use metering
Time of use (TOU) net metering employs a specialized reversible smart (electric) meterSmart meter
A smart meter is usually an electrical meter that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the...
that is programmed to determine electricity usage any time during the day. Time-of-use allows utility rates and charges to be assessed based on when the electricity was used (i.e., day/night and seasonal rates). Typically the production cost of electricity is highest during the daytime peak usage period, and low during the night, when usage is low.
Time of use metering is a significant issue for renewable-energy sources, since, for example, solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
systems tend to produce energy during the daytime peak-price period, and produce little or no power during the night period, when price is low.
Market rate net metering
In market rate net metering systems the user's energy use is priced dynamically according to some function of wholesale electric prices. The users' meters are programmed remotely to calculate the value and are read remotely. Net metering applies such variable pricing to excess power produced by a qualifying systems.Market rate metering systems will be implemented in California starting in 2006 and under the terms of California's net metering rules will be applicable to qualifying photovoltaic and wind systems. Under California law the payback for surplus electricity sent to the grid must be equal to the (variable, in this case) price charged at that time. It can never be negative, meaning you cannot make money from selling the electricity back. If you generate more electricity than you use then over a period of a month you will be billed zero and not make any money, in effect you give away your extra energy if you do not use it.
Net metering enables small systems to result in zero annual net cost to the consumer provided that the consumer is able to shift demand loads to a lower price time, such as by chilling water at a low cost time for later use in air conditioning, or by charging a battery electric vehicle
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
during off-peak times, while the electricity generated at peak demand time can be sent to the grid rather than used locally (see Vehicle-to-grid
Vehicle-to-grid
Vehicle-to-grid describes a system in which plug-in electric vehicles, such as electric cars and plug-in hybrids , communicate with the power grid to sell demand response services by either delivering electricity into the grid or by throttling their charging rate.Vehicle-to-grid can be used with...
). No credit is given for annual surplus production.
Australia
In some Australian states, the "feed-in tariff" is actually net metering, except that it pays monthly for net generation at a higher rate than retail, with Environment Victoria Campaigns Director Mark Wakeham calling it a "fake feed-in tariff". A feed-in tariff requires a separate meter, and pays for all local generation at a preferential rate, while net metering requires only one meter. The financial differences are very substantial.Victoria
From 2009, householders will be paid 60 cents for every excess kilowatt hour of energy fed back into the state electricity grid. This is around three times the current retail price for electricity.Queensland
Commencing in 2008, the Solar Bonus Scheme pays 44 cents for every excess kilowatt hour of energy fed back into the state electricity grid. This is around three times the current retail price for electricity.Ontario
OntarioOntario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
allows net metering for up to 500 kW, however credits can only be carried for 12 consecutive months. Should a consumer establish a credit where they generate more than they consume for 8 months and use up the credits in the 10th month then the 12 month period begins again from the date that the next credit is shown on an invoice. Any unused credits remaining at the end of 12 consecutive months of a consumer being in a credit situation are cleared at the end of that billing.
British Columbia
Areas of British ColumbiaBritish Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
serviced by BC Hydro are allowed net metering for up to 50 kW. At each annual anniversary the customer is paid 8.16 Cents per KWh if there is a net export of power. Systems over 50 kW are covered under the Standing Offer Program. FortisBC which serves an area in South Central BC also allows net-metering for up to 50 kW. Customers are paid their existing retail rate for any net energy they produce. The City of New Westminster which has its own electrical utility does not currently allow net-metering.
http://www.bcuc.com/Documents/Arguments/2008/DOC_20602_12-19_BCH_Final-Submission.pdf
New Brunswick
New BrunswickNew Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...
allows net metering for installations up to 100 kW. Credits from excess generated power can be carried over until March at which time any excess credits are lost.
Denmark
Net-metering for privately owned PV systems was established mid 1998 for a pilot-period of four years. Late 2002 the net-meteringscheme was extended another four years up to end of 2006. Net-metering has proved to be a cheap, easy to administer and
effective way of stimulating the deployment of PV in Denmark; however the relative short time window of the arrangement has so
far prevented it from reaching its full potential. During the political negotiations in the fall of 2005 the net-metering for privately
owned PV systems was made permanent.
Italy
Italy offers a very attractive support scheme, mixing net-metering and a well segmented premium FiTFit
Fit or FIT may refer to:Fitness* Physical fitness, how well a person is suited for physical tasks* FitTV, cable television network about physical fitness* Wii Fit, Nintendo Wii video game about physical fitness...
.
Spain
Net metering has been proposed by ASIF to promote renewable electricity, without requiring additional economic support.United States
Several bills are pending in Congress to institute a federal requirement that utilities provide net metering. They range from H.R. 729 which allows up to 2% net metering to H.R. 1945 which has no limit, but does limit residential users to 10 kW, a low limit compared to many states, such as New Mexico, with an 80,000 kW limit, or states such as Arizona, Colorado, and Ohio which limit as a percentage of load. Current as of June 2011, only three states do not allow net metering, plus Washington D.C., twenty one have no limit on the number of subscribers using net metering. Only two, Arizona and Ohio, have no specific wattage limit on the power limit for each subscriber (see table). Colorado, Maryland, New Jersey and Pennsylvania are considered the most favorable states for net metering, as they are the only states to receive an "A" rating from the Network for New Energy Choices in 2007, 2008 and 2009.
| State | Subscriber limit (% of peak) | Power limit Res/Com(kW) | Monthly rollover | Annual compensation |
|---|---|---|---|---|
| Alabama Alabama Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland... |
no limit | 100 | yes, can be indefinitely | varies |
| Alaska Alaska Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait... |
1.5 | 25 | yes, indefinitely | retail rate |
| Arizona Arizona Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix... |
no limit | 125% of load | yes, avoided-cost at end of billing year | retail rate |
| Arkansas Arkansas Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River... |
no limit | 25/300 | yes, until end of billing year | retail rate |
| California California California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area... |
5 | 1,000 | yes, can be indefinitely | varies |
| Colorado Colorado Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains... |
no limit | 120% of load or 10/25* | yes, indefinitely | varies* |
| Connecticut Connecticut Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately... |
no limit | 2,000 | yes, avoided-cost at end of billing year | retail rate |
| Delaware Delaware Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania... |
5 | 25/500 or 2,000* | yes, indefinitely | retail rate |
| District of Columbia | no limit | 1,000 | yes, indefinitely | retail rate |
| Florida Florida Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it... |
no limit | 2,000 | yes, avoided-cost at end of billing year | retail rate |
| Georgia Georgia (U.S. state) Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788... |
0.2 | 10/100 | no | determined rate |
| Hawaii Hawaii Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of... |
1 or 3* | 50 or 100* | yes, until end of billing year | retail rate |
| Idaho Idaho Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state.... |
0.1 | 25 or 25/100* | no | retail rate or avoided-cost* |
| Illinois Illinois Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,... |
1 | 40 | yes, until end of billing year | retail rate |
| Indiana Indiana Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is... |
0.1 | 10 | yes, indefinitely | retail rate |
| Iowa Iowa Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New... |
no limit | 500 | yes, indefinitely | retail rate |
| Kansas Kansas Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south... |
1 | 25/200 | yes, until end of billing year | retail rate |
| Kentucky Kentucky The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth... |
1 | 30 | yes, indefinitely | retail rate |
| Louisiana Louisiana Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties... |
no limit | 25/300 | yes, indefinitely | avoided cost |
| Maine Maine Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost... |
no limit | 100 or 660* | yes, until end of billing year | retail rate |
| Maryland Maryland Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east... |
1500 MW | 2,000 | yes, until end of billing year | retail rate |
| Massachusetts Massachusetts The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010... ** |
1 | 60, 1,000 or 2,000 | varies | varies |
| Michigan Michigan Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake".... |
0.75 | 150 | yes, indefinitely | partial retail rate |
| Minnesota Minnesota Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state... |
no limit | 40 | no | retail rate |
| Mississippi Mississippi Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi... |
||||
| Missouri Missouri Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It... |
5 | 100 | yes, until end of billing year | avoided-cost |
| Montana Montana Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,... |
no limit | 50 | yes, until end of billing year | retail rate |
| Nebraska Nebraska Nebraska is a state on the Great Plains of the Midwestern United States. The state's capital is Lincoln and its largest city is Omaha, on the Missouri River.... |
1 | 25 | yes, until end of billing year | avoided-cost |
| Nevada Nevada Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its... |
1 | 1,000 | yes, indefinitely | retail rate |
| New Hampshire New Hampshire New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian... |
1 | 100 | yes, indefinitely | retail rate |
| New Jersey New Jersey New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware... |
no limit | 2,000 | yes, avoided-cost at end of billing year | retail rate |
| New Mexico New Mexico New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S... |
no limit | 80,000 | if under $50 | avoided-cost |
| New York New York New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east... |
1 or 0.3 (wind) | 10 to 2,000 or peak load | varies | avoided-cost or retail rate |
| North Carolina North Carolina North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte... |
no limit | 1000 | yes, until summer billing season | retail rate |
| North Dakota North Dakota North Dakota is a state located in the Midwestern region of the United States of America, along the Canadian border. The state is bordered by Canada to the north, Minnesota to the east, South Dakota to the south and Montana to the west. North Dakota is the 19th-largest state by area in the U.S.... |
no limit | 100 | no | avoided-cost |
| Ohio Ohio Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus... |
no limit | no explicit limit | yes, until end of billing year | generation rate |
| Oklahoma Oklahoma Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state... |
no limit | 100 or 25,000/year | no | avoided-cost, but utility not required to purchase |
| Oregon Oregon Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern... |
0.5 or no limit* | 10/25 or 25/2,000* | yes, until end of billing year | varies |
| Pennsylvania Pennsylvania The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to... |
no limit | 50/3,000 or 5,000 | yes, "price-to-compare" at end of billing year | retail rate |
| Rhode Island Rhode Island The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area... |
2 | 1,650 for most, 2250 or 3500* | optional | slightly less than retail rate |
| South Carolina South Carolina South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence... |
0.2 | 20/100 | yes, until summer billing season | time-of-rate use or less |
| South Dakota South Dakota South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over... |
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| Tennessee Tennessee Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area... |
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| Texas Texas Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in... *** |
no limit | 20 or 25 | no | varies |
| Utah Utah Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the... |
varies* | 25/2,000 or 10* | varies* | avoided-cost or retail rate* |
| Vermont Vermont Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England... |
2 | 250 | yes, until end of billing year | retail rate |
| Virginia Virginia The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there... |
1 | 10/500 | yes, avoided-cost option at end of billing year | retail rate |
| Washington | 0.25 | 100 | yes, until end of billing year | retail rate |
| West Virginia West Virginia West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east... |
0.1 | 25 | yes, up to twelve months | retail rate |
| Wisconsin Wisconsin Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is... |
no limit | 20 | no | retail rate for renewables, avoided-cost for non-renewables |
| Wyoming Wyoming Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High... |
no limit | 25 | yes, avoided-cost at end of billing year | retail rate |
Note: Some additional minor variations not listed in this table may apply. N/A = Not available. Lost = Excess electricity credit or credit not claimed is granted to utility. Retail rate = Final sale price of electricity. Avoided-cost = "Wholesale" price of electricity (cost to the utility). * = Depending on utility. ** = Massachusetts distinguishes policies for different "classes" of systems. *** = Only available to customers of Austin Energy
Austin Energy
Austin Energy is the public utility providing electrical power service to a area including Austin, Texas and parts of the surrounding area in Travis and Williamson counties...
or Green Mountain Energy (Green Mountain Energy is not a utility but a retail electric provider; according to www.powertochoose.com, Green Mountain prices are twice the average retail price).
Net purchase and sale
Net purchase and sale is a different method of providing power to the electricity grid that does not offer the price symmetry of net metering, making this system a lot less profitable for home users of small renewable electricity systems.Under this arrangement, two uni-directional meters are installed—one records electricity drawn from the grid, and the other records excess electricity generated and fed back into the grid. The user pays retail rate for the electricity they use, and the power provider purchases their excess generation at its avoided cost (wholesale rate). There may be a significant difference between the retail rate the user pays and the power provider's avoided cost.
Germany, Spain, some States in the USA and other countries, on the other hand, have adopted a price schedule, or Feed-in Tariff
Feed-in Tariff
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...
(FIT), whereby customers get paid for any electricity they generate from renewable energy on their premises. The actual electricity being generated is counted on a separate meter, not just the surplus they feed back to the grid. In Germany, for the solar power generated, a feed-in tariff is being paid in order to boost solar power (figure from 2009). Germany once paid several times the retail rate for solar but has successfully reduced the rates drastically while actual installation of solar has grown exponentially at the same time due to installed cost reductions. Wind energy, in contrast, only receives around a half of the domestic retail rate, because the German system pays what each source costs (including a reasonable profit margin).
Related technology
Sources that produce direct currentDirect current
Direct current is the unidirectional flow of electric charge. Direct current is produced by such sources as batteries, thermocouples, solar cells, and commutator-type electric machines of the dynamo type. Direct current may flow in a conductor such as a wire, but can also flow through...
, such as solar panel
Photovoltaic module
A solar panel is a packaged, connected assembly of solar cells, also known as photovoltaic cells...
s must be coupled with an electrical inverter
Inverter (electrical)
An inverter is an electrical device that converts direct current to alternating current ; the converted AC can be at any required voltage and frequency with the use of appropriate transformers, switching, and control circuits....
to convert the output to alternating current
Alternating current
In alternating current the movement of electric charge periodically reverses direction. In direct current , the flow of electric charge is only in one direction....
, for use with conventional appliances. The phase of the outgoing power must be synchronized with the grid, and a mechanism must be included to disconnect the feed in the event of grid failure. This is for safety - for example, workers repairing downed power lines must be protected from "downstream" sources, in addition to being disconnected from the main "upstream" distribution grid.
Solar Guerrilla
Solar Guerrilla (or the guerrilla solar movement) is a term originated by Home Power MagazineHome Power Magazine
Home Power is a bi-monthly American magazine. It is based in Ashland, Oregon. Circulation is greater than 100,000.Published since 1987, Home Power has promoted a goal of reducing the use of fossil fuels for electricity generation by replacing fossil fuel generation capacity with currently available...
and is applied to someone who uses an alternative energy source to illegally supply electricity back to a public utility grid. If equipment is used which circumvents safety systems it is extremely dangerous to workers repairing power lines.
See also
- Automatic meter readingAutomatic meter readingAutomatic meter reading, or AMR, is the technology of automatically collecting consumption, diagnostic, and status data from water meter or energy metering devices and transferring that data to a central database for billing, troubleshooting, and analyzing.This technology mainly saves utility...
- Demand responseDemand responseIn electricity grids, demand response is similar to dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce their consumption at critical times or in response to market prices...
- Distributed generationDistributed generationDistributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
- Electricity meterElectricity meterAn electricity meter or energy meter is a device that measures the amount of electric energy consumed by a residence, business, or an electrically powered device....
- Feed-in TariffFeed-in TariffA feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...
- Interstate Renewable Energy CouncilInterstate Renewable Energy CouncilThe Interstate Renewable Energy Council was established in 1982 to influence state and national energy policies and help shape utility and industry standards and best practices with regard to renewable energy resources...
- Power Purchase AgreementPower Purchase AgreementPower Purchase Agreements are contracts between two parties, one who generates electricity for the purpose of sale and one who is looking to purchase electricity . There are various forms of Power Purchase Agreements; these are differentiated by the source of energy harnessed...
- Power system automationPower system automationPower system automation is the act of automatically controlling the power system via instrumentation and control devices. Substation automation refers to using data from Intelligent electronic devices , control and automation capabilities within the substation, and control commands from remote...
- Public Utility Regulatory Policies ActPublic Utility Regulatory Policies ActThe Public Utility Regulatory Policies Act is a law, passed in 1978 by the United States Congress as part of the National Energy Act. It is meant to promote greater use of domestic renewable energy...
of 1978 - Smart Grid
- Smart meterSmart meterA smart meter is usually an electrical meter that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the...
- Utility submeterUtility submeterUtility Submetering is the implementation of a system that allows a landlord, property management firm, condominium association, homeowners association, or other multi-tenant property to bill tenants for individual measured utility usage...
- Variable pricingVariable pricingMost firms use a fixed price policy. That is, they examine the situation, determine an appropriate price, and leave the price fixed at that amount until the situation changes, at which point they go through the process again...
- Virtual power plantVirtual power plantA virtual power plant is a cluster of distributed generation installations which are collectively run by a central control entity....
External links
- U.S. Department of Energy - Net Metering Policies
- EERE:
- The Database of State Incentives for Renewable Energy (DSIRE)
- Connecting to the Grid: published monthly, focusing on the latest news on interconnection and net metering in the U.S.
- Canada 2003
- Renewable Energy in Grid-Connected Electricity Generation (by REN21)