Net Metering (2011)

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.