Net Metering Eligibility

What is Eligible:
Net metering is allowed for energy production systems up to 60 KW per 220 CMR 11.04. This includes both renewable and non-renewable generators.

Note: Recent legislation will expand eligibility once a ruling from the Department of Public Utilities is published.


Government Regulations
These are the governing Massachusetts regulations*:

• Net metering is covered by 220 CMR 11.04: Distribution Company Requirements. This is on the Mass.gov website at: www.mass.gov/Eoca/docs/dte/cmr/220cmr1100.pdf* (pdf)
  
  (c) Net Metering. A Customer of a Distribution Company with an on-site Generation Facility of 60 kilowatts or less in size has the option to run the meter backward and may choose to receive a credit from the Distribution Company equal to the average monthly market price of generation per kilowatthour, as determined by the Department, in any month during which there was a positive net difference between kilowatthours generated and consumed. Such credit shall appear on the following month's bill. Distribution Companies shall be prohibited from imposing special fees on net metering Customers, such as backup charges and demand charges, or additional controls, or liability insurance, as long as the Generation Facility meets the Interconnection Standards and all relevant safety and power quality standards. Net metering customers must still pay the minimum charge for Distribution Service (as shown in an appropriate rate schedule on file with the Department) and all other charges for each net kilowatthour delivered by the Distribution Company in each billing period.
  
  *Note: Recent legislation will expand eligibility once a ruling from the Department of Public Utilities is published.

How Bills are Determined

Net Import/Net Export
Net metering looks at power imported or exported over a billing period (aka billing month). Over the month your meter may run forwards or backwards at different times, and we look at the net use of power over the month - in essence just going with the previous and current meter readings to determine net import or export of power.

• Net Import Of Power Over Billing Month
  If your generation system produces less power during a billing month than your facility/home uses during that billing month, you only have to pay for the net amount of power you draw from the grid. The power you generate and use on site is worth "full retail value".
  
  For example, if your generator produces 700 kWH over a billing month, but you use 1,000 kWH in your facility/home, you will have a net import (use) of 300 kWH over the billing period. You will only have to pay energy charges on the net 300 kWH. The power you generate has a real value equivalent to the full retail value.
  
  
• Net Export Of Power Over Billing Month
  If your generation system produces more power than your facility/home uses during the month over which you are billed, the value of the excess power is credited on your account using the average hourly market price. This hourly market price is determined each month by the Independent System Operator - New England (ISO-NE) for each load zone. Recent values vary from about $0.045 to $0.08 per kilowatt-hour, depending on the month and load zone.
  
  For example, if you use 1,000 kWH in your facility/house over a month, but your generator produces 1,300 kWH, you will export a net 300 kWH to the grid. You will not have to pay any energy related charges during that month and you will be compensated for the exported power. If the average hourly price for your zone during that month is $0.06, then your account will be credited $18 the following month for this exported power. There is a time delay in applying the credit as the monthly rate is determined by ISO-NE. During this billing month, the first 1,000 kWH you generate are worth full retail value since you used the power on site, and the last 300 kWH are compensated at wholesale energy prices.

Regardless of a net import or export of power during a billing period, the customer charge and demand charges are still applied and must be paid for if not covered by previous credits.

Qualifying Facilities per FERC
Qualifying Facilities have several options on metering and billing. For a description of qualifying facilities please see the Electric-Qualifying Facilities* webpage on the Federal Energy Regulatory Commission's website.

For more information on the options for Qualifying Facilities, view our Rates Tariff (pdf)—Qualifying Facility Power Purchase Rate P. Please see the Qualifying Facility Power Purchase Rate P for more information on the options for such a facility. To find the tariff, click on the following link and navigate down on the bookmarks to the second to last item titled "Qualifying Facility Power Purchase Rate P. Tariff Document (pdf)

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