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What is Net Metering?
Nationally, most utilities are required to buy excess electricity from small wind systems at their avoided cost; however, in many states, net metering programs compel utilities to buy back excess electricity at the retail rate. Essentially, this allows customers who generate their own power to turn their electric meters backward when they have more energy than they can use. Net metering programs vary in their rules and availability by state and by utility. In Illinois, net metering is only available through ComEd's Wind and Photovoltaic Generation Pricing Experiment program. The program is available to all ComEd customers, but is limited to generators that are 40 kW or smaller. ComEd purchases net excess generation at avoided costs plus an annual incentive payment. This program is running on an experimental and voluntary basis. Although utilities are free to set up similar voluntary programs, new legislation would be needed to require net metering programs for all Illinois utilities. For more information on this, contact:
Denise A. Bechen Net Metering Programs in Other States Thirty-seven states have some kind of net metering program: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming. Some of the more innovative programs include those in Minnesota and Wisconsin where customers are paid the retail rate for net excess generation, and in Iowa where there is no size limit on generators that can enter net metering arrangements. For a map of the net metering programs throughout the United States, click here. Important Information About Small Turbine Projects |
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