Who owns capacity and energy rights
D.P.U. 17-146-B discusses the net metering and SMART program rules applicable to qualification and participation in the FCM.
Acronyms
AOBC - alternative on-bill credit
BTM - behind the meter
ESS - energy storage system
FTM - front of the meter
KW - kilowatt
NM - net metering
QF - qualifying facility
SMART - solar Massachusetts renewable target
Capacity and energy rights
The following information is for net metering and SMART AOBC facilities only. The Department is considering the treatment of capacity rights of QFs in D.P.U. 17-54.
- NM, SMART AOBC and small hydro facilities less than 60 kW: the host customer owns both the capacity and energy rights.
- All small hydro facilities greater than 60 kW: the host customer owns capacity rights and the electric company owns energy rights.
- All other NM and SMART AOBC facilities greater than 60 kW: the electric company owns both capacity and energy rights, unless the host customer exercises the buyout option. Under the buyout option, the host customer owns the capacity rights and the electric company owns the energy rights. The buyout option is available only to BTM solar facilities and FTM solar facilities paired with ESS. For more information, read D.P.U. 17-146-B.
- Energy storage: In all instances, the host customer owns the capacity and energy rights associated with the ESS that is paired with a NM or SMART AOBC facility.