Net Metering - United States

United States

Several bills have been proposed to institute a federal requirement to set standard limits on net metering. They range from H.R. 729 which allows up to 2% net metering to H.R. 1945 which has no limit, but does limit residential users to 10 kW, a low limit compared to many states, such as New Mexico, with an 80,000 kW limit, or states such as Arizona, Colorado, New Jersey, and Ohio which limit as a percentage of load. Best practices recommends limiting only to the customer's service entrance capacity. Current law requires all utilities to offer net metering upon request, which implies no limits, and is in conflict with state laws which do set a limit. Current as of June 2011, only three states do address net metering, and twenty one have no limit on the number of subscribers using net metering. Only three, Arizona, New Jersey, and Ohio, have no specific wattage limit on the power limit for each subscriber (see table). Arizona, California, Colorado, Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Oregon, Pennsylvania, Vermont, and West Virginia are considered the most favorable states for net metering, as they are the only states to receive an "A" rating from the Network for New Energy Choices in 2011.

State Subscriber limit
(% of peak)
Power limit
Res/Com(kW)
Monthly
rollover
Annual
compensation
Alabama no limit 100 yes, can be indefinitely varies
Alaska 1.5 25 yes, indefinitely retail rate
Arizona no limit 125% of load yes, avoided-cost at end of billing year retail rate
Arkansas no limit 25/300 yes, until end of billing year retail rate
California 5 1,000 yes, can be indefinitely varies
Colorado no limit 120% of load or 10/25* yes, indefinitely varies*
Connecticut no limit 2,000 yes, avoided-cost at end of billing year retail rate
Delaware 5 25/500 or 2,000* yes, indefinitely retail rate
District of Columbia no limit 1,000 yes, indefinitely retail rate
Florida no limit 2,000 yes, avoided-cost at end of billing year retail rate
Georgia 0.2 10/100 no determined rate
Hawaii 1 or 3* 50 or 100* yes, until end of billing year retail rate
Idaho 0.1 25 or 25/100* no retail rate or avoided-cost*
Illinois 1 40 yes, until end of billing year retail rate
Indiana 1 1000 yes, indefinitely retail rate
Iowa no limit 500 yes, indefinitely retail rate
Kansas 1 25/200 yes, until end of billing year retail rate
Kentucky 1 30 yes, indefinitely retail rate
Louisiana no limit 25/300 yes, indefinitely avoided cost
Maine no limit 100 or 660* yes, until end of billing year retail rate
Maryland 1500 MW 2,000 yes, until end of billing year retail rate
Massachusetts** no limit <10 kW
3
60, 1,000 or 2,000 varies varies
Michigan 0.75 150 yes, indefinitely partial retail rate
Minnesota no limit 40 no retail rate
Mississippi
Missouri 5 100 yes, until end of billing year avoided-cost
Montana no limit 50 yes, until end of billing year retail rate
Nebraska 1 25 yes, until end of billing year avoided-cost
Nevada 1 1,000 yes, indefinitely retail rate
New Hampshire 1 100 yes, indefinitely retail rate
New Jersey no limit previous years consumption yes, avoided-cost at end of billing year retail rate
New Mexico no limit 80,000 if under $50 avoided-cost
New York 1 or 0.3 (wind) 10 to 2,000 or peak load varies avoided-cost or retail rate
North Carolina no limit 1000 yes, until summer billing season retail rate
North Dakota no limit 100 no avoided-cost
Ohio no limit no explicit limit yes, until end of billing year generation rate
Oklahoma no limit 100 or 25,000/year no avoided-cost, but utility not required to purchase
Oregon 0.5 or no limit* 10/25 or 25/2,000* yes, until end of billing year* varies
Pennsylvania no limit 50/3,000 or 5,000 yes, "price-to-compare" at end of billing year retail rate
Rhode Island 2 1,650 for most, 2250 or 3500* optional slightly less than retail rate
South Carolina 0.2 20/100 yes, until summer billing season time-of-rate use or less
South Dakota
Tennessee
Texas*** no limit 20 or 25 no varies
Utah varies* 25/2,000 or 10* varies* avoided-cost or retail rate*
Vermont 2 250 yes, until end of billing year retail rate
Virginia 1 10/500 yes, avoided-cost option at end of billing year retail rate
Washington 0.25 100 yes, until end of billing year retail rate
West Virginia 0.1 25 yes, up to twelve months retail rate
Wisconsin no limit 20 no retail rate for renewables, avoided-cost for non-renewables
Wyoming no limit 25 yes, avoided-cost at end of billing year retail rate

Note: Some additional minor variations not listed in this table may apply. N/A = Not available. Lost = Excess electricity credit or credit not claimed is granted to utility. Retail rate = Final sale price of electricity. Avoided-cost = "Wholesale" price of electricity (cost to the utility). * = Depending on utility. ** = Massachusetts distinguishes policies for different "classes" of systems. *** = Only available to customers of Austin Energy or Green Mountain Energy (Green Mountain Energy is not a utility but a retail electric provider; according to www.powertochoose.com, Green Mountain prices are twice the average retail price).

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