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Net Metering

Net Metering. Marc J. Shkolnick, CAE Nebraska Wind Energy Conference Nov 11, 2008. Federal Policy. Public Utilities Regulatory Policy Act of 1978 (PURPA) encourages: Conservation of energy Optimization of efficient use of utility resources Equitable rates to electric consumers.

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Net Metering

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  1. Net Metering Marc J. Shkolnick, CAE Nebraska Wind Energy Conference Nov 11, 2008

  2. Federal Policy Public Utilities Regulatory Policy Act of 1978 (PURPA) encourages: • Conservation of energy • Optimization of efficient use of utility resources • Equitable rates to electric consumers

  3. Federal Policy Public Utilities Regulatory Policy Act of 1978 (PURPA): • Electric utilities will connect to and purchase energy from Qualifying Facilities. • Qualifying Facilities include cogeneration and small power producers.

  4. PURPA Qualifying Facilities Small power producers include generation from: • Biomass • Waste • Wind • Solar • Water

  5. Federal Policy Update Energy Policy Act of 2005 (EPAct 2005): • All medium and large electric utilities must consider adopting new federal standards. • Net metering is one of those standards.

  6. Net Metering Definition: • A customer-owned generator offsets or reduces electric energy provided by the electric utility. • Net metering applies to renewables (small power producers). • Typically thought of as an electric meter allowed to run backwards.

  7. Net Metering Simply put: • Net metering makes connecting small renewable generators easy. • Net metering encourages renewable generation.

  8. Net Metering at LES • Renewable generators up to 25 kW. • Subtracts excess generation from LES deliveries. • LES buys net excess generation. • Customer must contact LES before connecting a generator (for safety).

  9. Metering IN Electric Utility Customer Generator METER Customer Home OUT

  10. Metering IN OUT Electric Utility Customer Generator METER M2 METER M1 Customer Home

  11. Examples LES’ summer residential rates: • Customer charge: $8.95 per month • Energy charge: 9.37 ¢ per kWh Net metering: • Buy back rate: 2.84 ¢ per kWh

  12. Electric System

  13. Example #1No Customer Generation 1,000 kWh 0 kWh IN OUT 0 kWh Electric Utility Customer Generator METER M2 METER M1 Net Meter: 1,000 kWh To Customer Customer Home 1,000 kWh Customer Bill: $94.10

  14. Example #2Customer Generates Energy 500 kWh 0 kWh IN OUT 500 kWh Electric Utility Customer Generator METER M2 METER M1 Net Meter: 500 kWh To Customer Customer Home 1,000 kWh Customer Bill: $51.15

  15. Example #3Some Energy Flows to the Utility 700 kWh 200 kWh IN OUT 500 kWh Electric Utility Customer Generator METER M2 METER M1 Net Meter: 500 kWh To Customer Customer Home 1,000 kWh Customer Bill: $51.15

  16. Example #4Some Energy Sold to the Utility 300 kWh 500 kWh IN OUT 1,200 kWh Electric Utility Customer Generator METER M2 METER M1 Net Meter: 200 kWh To Utility Customer Home 1,000 kWh Customer Bill: $2.52

  17. Some Considerations • Generator and home must be at the same site, on the same service line. • LES requires a second meter socket and a disconnect switch. • Check building codes and get a permit.

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