State Solar Incentives

Net Metering policies dictate the compensation rate for excess energy produced by a solar panel system that is fed back into the grid. Different states have different net metering policies, so it is important to check with the local utility company to understand the compensation rate. Many states require utilities to pay net metering customers the full retail rate for their electricity. Meanwhile, other jurisdictions have set up various compensation levels: some lower at the wholesale rate and others in between retail and wholesale rates. Here are a few factors that usually outline net metering policies:

• Eligible Technologies: Identifies renewable energy sources that can be net metered.
• System Size Caps: The maximum allowable system size that can be net metered.
• Program Size Caps: The limit of total net metering systems that can be set up in a certain area or utility territory.
• Customer Type: Specifies which electricity customers are eligible (e.g. residential, commercial, etc.).
• Net Excess Generation: Determines if customers receive credits at a retail value or lower, as well as when the credit expires.
• Ownership of RECs: Most net metering policies grant customers the right to retain ownership of their generated RECs in relation to their electrical output.
  
  

Every state has policies in place regarding the limits of individual systems and total capacity that can be net-metered on its grid. These limitations guarantee stability of the energy industry while tiered approaches make certain residential PV systems are installed without overtaking all available space for large-scale projects. Depending on specific regulations, credits earned may extend indefinitely or possibly expire at a predetermined date such as year’s end.