Grays Harbor PUD's net-metering program differs slightly from what is required by Washington state law in that Grays Harbor PUD reimburses customers for net excess generation (NEG), at the end of each year, at 50% of the utility's retail rate. State law allows utilities to require customers to surrender NEG to the utility, without reimbursement, at the end of a 12-month billing cycle. Grays Harbor PUD has voluntarily gone beyond the state requirement in order to encourage customers to use renewable energy systems.
Washington's original net-metering law, which applies to all electric utilities, was enacted in 1998 and amended in 2006. Individual systems are limited to 100 kilowatts (kW) in capacity. Net metering is available on a first-come, first-served basis until the cumulative generating capacity of net-metered systems equals 0.25% of the utility’s peak demand during 1996. This limit will increase to 0.5% on January 1, 2014. At least one-half of the utility's 1996 peak demand available for net-metered systems is reserved for systems generating electricity using renewables.