- What is net metering?
- Why is net metering available to me now?
- Does the Commonwealth regulate net metering?
- Can I participate in net metering?
- What is a tariff?
- When are the new net metering tariffs effective?
- My city or town gets electricity from a municipally-owned and -operated electric company. Can I net meter?
- Can I generate my own electricity?
- Do I have to own the generating facilities that I install?
- What types of generating facilities may I install and net meter?
- What is a "Host Customer"?
- Must the net metering generating facilities be installed where there is an existing retail meter?
- What is the electric grid?
- Who connects the generating facilities to the electric grid?
- Does net metering allow installation of a generating facility at one location while the excess electricity offsets electricity usage at another location(s)?
- What is "neighborhood net metering"?
- What is a "neighborhood" for net metering purposes?
- Is there any limit to the amount of net metering that a distribution company must allow?
- How do I contact my electric distribution company to arrange for net metering services?
- Can a group of people pool money and buy a generating facility together?
- How do I buy the equipment needed for generating facilities?
- Does the Commonwealth regulate the sellers of generating equipment/facilities?
- What if I do not generate enough electricity to meet all my power needs?
- What if I generate more electricity than I need?
- How is a credit for excess electricity calculated?
- How do I use the credit?
o Net metering allows customers of an electric distribution company to generate their own electricity in order to offset their electricity usage. Net metering can lower a customer's electricity bill by reducing the amount of electricity the customer must buy from the distribution company. Net metering also allows customers to be compensated for any electricity they generate but do not use.
o How does it work? To net meter, customers of a distribution company must install generating facilities such as solar panels on a home or a wind turbine at a school. These facilities must be connected to a meter that measures the amount of electricity the customer uses ("retail meter"). The retail meter spins forward when customers use electricity from the distribution company, but spins backward when customers generate more electricity than they use.
o The result? Customers who net meter (also known as Host Customers) will be billed for their net consumption of electricity. In some cases, the bill will require the customer to pay the distribution company for electricity. In others, the bill may include a monetary credit for the excess electricity the customer generated but did not use.
Net Consumption = (total electricity consumed) - (total electricity generated). |
o For example: Imagine that a residential customer installs a rooftop photovoltaic (PV) system (also known as a solar-electric system) to her home, on her side of the retail meter. Before daylight, her retail meter spins forward as she consumes electricity from the distribution company to power appliances like a refrigerator or computer. During the day, the solar panels generate electricity. If they provide more power than the customer can use, her retail meter will spin in reverse as the excess electricity is sent to the electric grid. At night, when the solar panels are not generating electricity, the retail meter will spin forward again as the customer consumes more electricity than her system generates. At the end of the billing period (around one month), the customer only pays for the net consumption of electricity.
o Net metering has been available to customers in Massachusetts since the 1980s. The Green Communities Act, signed into law by Governor Patrick on July 2, 2008, increased the allowable net metering capacity (size) from 60 kilowatts ("kW") to 2 megawatts ("MW"), a 33 times increase in the capacity limit. In addition, this law increases the compensation for excess electricity generated by wind, solar, and agricultural net metering facilities from the wholesale rate to nearly the retail rate.
o Yes, the Department of Public Utilities ("Department") enacted regulations pursuant to the Green Communities Act at 220 C.M.R. 18.00
, which govern net metering in Massachusetts
o Yes, so long as:
- You are a customer of a Massachusetts distribution company;
- You have an eligible interconnected generating facility; and
- The distribution company's net metering tariff remains open to new customers.
o A tariff is a schedule of the rates, charges, terms and conditions that distribution companies must use when providing net metering or other distribution services to customers.
o The new net metering tariffs are in effect. View a company's tariff by clicking here:
o Net Metering Tariffs DPU 09-71, DPU 09-72, DPU 09-73, DPU 09-74
o You must contact your municipally-owned and operated electric company in order to learn about the net metering rules in your town.
o Yes. However, for safety and monitoring reasons you need to file an interconnection application with your distribution company in order to get approval before you generate your own electricity.
o No. Third-party financing and ownership of generating facilities are permitted under the net metering regulations 220 C.M.R. 18.09 (5).
- What types of generating facilities may I install and net meter?
- You can net meter with any type of generation below 60 kW. If the electricity is generated by wind, solar, or agricultural facilities, it can produce no more than 2 MW.
- What is a "Host Customer"?
- The Host Customer is the customer of record with the distribution company (the person or entity whose name appears on the account at the distribution company) who has installed a generating facility.
o No, but the net metering facility must be connected to the electric grid through a retail meter.
o The electric grid is the system of electric distribution lines that distribution companies use to deliver electricity to customers. Excess electricity generated by Host Customers is sent to the electric grid.
o The distribution company.
o Maybe. The distribution company charges an interconnection application fee. Also, the distribution company will conduct an analysis on a case-by-case basis in order to determine if any system upgrades are needed as a result of the interconnection, and you may be responsible for some or all of the cost of the upgrades.
o Yes.
o There are many different installers located in Massachusetts and the Northeast in general. The design, installation and interconnection of the generating facility is complicated, so professional consultation is advisable.
o The Department of Public Utilities does not regulate sellers of generating facilities.
o Just as any person that does not have generating facilities, you will need to continue to pay the distribution company for any electricity that you consume.
o Then the distribution company will credit your account for the value of excess electricity sent to the electric grid.
o Net metering credits are calculated using a formula, which is set forth in 220 C.M.R.18.04 and in each distribution company's net metering tariff. For excess electricity generated by wind, solar, and agricultural net metering facilities, net metering credits are calculated using components of retail rates (as opposed to wholesale rates).
o Net metering credits will show up as a dollar amount on your electricity bill (as opposed to a kilowatt-hour amount). These credits never expire and will continue to appear on your electricity bill until you use them up.
- Does net metering allow installation of a generating facility at one location while the excess electricity offsets electricity usage at another location(s)?
o Yes. Under 220 C.M.R. 18.05, Host Customers may transfer net metering credits to other customer accounts so long as the accounts are served by the Host Customer's distribution company and located in the Host Customer's ISO-NE load zone. You can find out if other customer accounts are in the same load zone by contacting the distribution company. For net metering facilities with a capacity of 1 MW to 2 MW (Class III Net Metering Facilities), the distribution company can elect to pay the Host Customer the value of the credits instead of allocating the credits to other customer accounts.
o Neighborhood net metering is the process by which customers can band together and share the benefits of a net metering facility. Neighborhood net metering requires at least 10 residential customers in the neighborhood to participate, but non-residential customers in the neighborhood may also participate.
o A "neighborhood":
- Is a geographic area within one municipality;
- Is recognized by the residents as including a unique community of interests;
- Is within the service territory of a single Distribution Company;
- Is within a single ISO-NE load zone; and
- may encompass residential, commercial, and undeveloped properties.
o The Department may grant exceptions to this definition.
o Each distribution company must allow net metering until the aggregate amount of electricity that could be generated is one percent of the company's highest historical peak load. "Highest historical peak load" is the highest amount of electricity consumed by the distribution company's customers in one day.
On October 15, 2010, a separate cap for government net metering projects was established when Governor Patrick signed into law Chapter 359 of the Acts of 2010. Each distribution company must continue to provide net metering to government projects (this includes municipal projects) until the aggregate amount of electricity that could be generated is two percent of the company's highest historical peak load.
Prior to this change on October 15, 2010, the amount of load generated by government projects counted toward the one percent cap. As a result of the amended law, government projects have a separate cap from other net metering projects.
o Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid
- Email: distributed.generation@us.ngrid.com
- Alex Kuriakose 781-907-1643o NSTAR
- Joseph Feraci 781-441-8196 ( joseph.feraci@nstar.com)
- Paul Kelley 781-441-8531 ( paul.kelley@nstar.com)
o Unitil
o Western Massachusetts Electric Company or call 413-787-1087, or email wmecodg@nu.com
- Net Metering: www.wmeco.com/netmetering
- Distributed Generation: www.wmeco.com/distributedgeneration