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Net Metering

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Fuel Cells using Renewable Fuels
Program Info
North Carolina
Program Type 
Net Metering
North Carolina Utilities Commission

The North Carolina Utilities Commission (NCUC) requires the state’s three investor-owned utilities -- Duke Energy, Progress Energy and Dominion North Carolina Power -- to make net metering available to customers that own and operate systems that generate electricity using solar energy, wind energy, hydropower, ocean or wave energy, biomass resources, combined heat and power (CHP) which uses waste heat derived from eligible renewable resources, or hydrogen derived from eligible renewable resources.* The individual system capacity limit is one megawatt (MW). There is no aggregate capacity limit on net-metered systems.

Customers may net meter under any available rate schedule. However, customers that choose to take service under any tariff other than a time-of-use (TOU) demand tariff must surrender to the utility all renewable energy credits (RECs) associated with the customer’s generation – with no compensation for the customer.

For residential systems up to 20 kilowatts (kW) and non-residential systems up to 100 kW in capacity, utilities may not charge any standby charges or any additional metering charges other than those charged to customers who do not net meter under the applicable rate schedule. For larger systems, utilities are allowed to impose standby charges consistent with approved standby rates applicable to other customer-owned generation.

In general, any customer net excess generation (NEG) during a billing period is carried forward to the following billing period at the utility’s full retail rate, and then surrendered to the utility – with no compensation for the customer – at the beginning of each summer billing season. However, the treatment of generation and NEG for customers on TOU-demand tariffs is more complicated. For these customers, on-peak generation is used to offset on-peak consumption, and off-peak generation is used to offset off-peak consumption. Any remaining on-peak generation is then used to offset off-peak consumption. Off-peak generation may only be used to offset off-peak consumption.

Utilities must file with the NCUC annual reports indicating the number of net-metering applicants and customer-generators, the aggregate capacity of net-metered generation, the size and types of renewable-energy systems, the amounts of on-peak and off-peak generation credited and ultimately granted to the utility, and the reasons for any rejections or removals of customer-generators from a net-metering arrangement.

''* In July 2006, the NCUC extended net metering to eligible systems with battery storage. "Gaming” a net-metering arrangement by using battery storage to manipulate a TOU tariff is not allowed.''