Questions And Answers About Group And Simple 'Net Metering'

Renewable energy generation such as solar, wind and biomass in the US has grown by over 500 billion kWhs since 2000. It has displaced coal as the third major energy generation source. The increase is a result of global initiatives that governments have subsidized to make it competitive with hydroelectric, natural gas and nuclear. This has resulted in the creation of mechanisms that allow for tax credits and special provisions that facilitate the installation and use of the renewable source. The most common method used is Net Metering.

Let’s start by defining Net Metering. It is an action to offset grid-generated electric consumption with a renewable source such as solar, wind, bio and in some cases hydro.  It applies to both residential or commercial electric accounts. The process requires a special meter that measures the difference between the electricity provided by the local utility or competitive energy supplier and the electricity produced by an on-site renewable energy source. The meter registers the flow of electricity to your business/home and from your renewable energy source back out to the utility distribution system. The difference is used to calculate your monthly electric bill. The generation from the renewable source is subtracted from the overall usage.

Who is eligible? In short, any home and business that receives electricity from a utility.  There is no difference if the supply comes from a utility or a third party.  

Another method to facilitate the deployment of renewable energy is ‘Group Net Metering’. It is the same procedure as net metering, the difference is that there is a ‘Host’ and ‘Group Members’.  It allows for net-metered renewable energy facilities to share the surplus electricity generation with other electric utility account holders. Group members do not have net metered renewable energy facilities and do not have to make any changes to their existing electric service.  

Who is eligible?  Group hosts and members of the group must be customers of the same distribution utility (like Eversource) and can be customers with competitive electric power suppliers. In New Hampshire, it is important to note that group hosts who take energy supply service from a retail competitive electric power supplier are not eligible for the Default Energy Service portion of the Group Host Credit.  

Another point to note is that the credit resulting from Net Metering is/was par to the utility’s default rate.  There is a change of this policy going forward that favors the utilities by paying out less than the default rate.  

Hope this helps and let us know if your organization would like to participate. Also available upon request are some great options for solar panel installations for your business or residence.

Your friendly Neighborhood Energy.