Charging Forward: Net Metering Policies in SLC States

THE SOUTHERN OFFICE OF THE COUNCIL OF STATE GOVERNMENTSPO Box 98129 | Atlanta, Georgia 30359 ph: 404/633-1866 | fx: 404/633-4896 | www.slcatlanta.orgSERVING THE SOUTHSOUTHERN LEGISLATIVE CONFERENCEOFTHE COUNCIL OF STATE GOVERNMENTS Copyright December 2014Energy policies in Southern Legislative Conference (SLC)memberstatesareundergoingsubstantial changesasinstallationsofdistributedgeneration* systems,suchasrooftopsolarpanelsandoth-ersmall-scalerenewableenergytechnologies,continueto expand.Thisexpansionhasbeenencouragedbystateand federal tax credits, which have made renewable energy tech-nology,especiallysolarenergytechnology,increasingly affordable. Further encouraging the installation of distribut-ed generation technologies is the availability of net metering programs,wherebycustomerswhogeneratesomeoftheir ownelectricityareabletooffsettheirelectricitybillsby selling their excess power back to a utility provider. Net me-teringallowscustomersanopportunitytorecoupthehigh initialcostofinstallingdistributedgenerationsystems,and mayprovideapositivereturnoninvestment.Asaresultof theseincentives,intheUnitedStates,someoneisinstall-ingasolarpowersystemeveryfourminutes.1Accordingto Stateline,astatepolicynewsprovider,morethan323,000 homeownersandbusinessesusedsolarpanelsinnetmeter-ingprogramsin2012,comparedwith151,000in2010,an increase of 114 percent.2Increasesintheuseofdistributedgenerationsystemsby consumers have led to an increase in demand for utilities to * distributed generation power generation at the point of consumption; a common example of a type of distributed generation is residential roof-top solar panelsoffernetmetering.Ofthe15statesrepresentedbytheSLC, 11havestatewidenetmeteringpolicies,whileTexashasa voluntarypolicy.Alabama,MississippiandTennesseedo not yet have net metering policies in place. This SLC Region-al Resource reviews the concept of net metering and analyzes thestatusandnatureofnetmeteringlegislationandtrends in SLC member states. In order to provide clarity to this top-ic, a glossary of terms has been provided. Additionally, Table 2providesasummaryofnetmeteringpoliciesintheSLC region.Net MeteringA variety of definitions of net metering can be found in the legislationandpoliciesimplementedbystates.Forthepur-posesofthisSLCRegionalResource,netmeteringisdefined asabillingsystemthatallowsutilitycustomerstousethe electricitytheygenerateinexcessoftheirconsumptionto offsettheiruseofelectricityfromthegrid.3Althoughthe mostcommonformofdistributedgenerationissolar,some statesalsoincludeothertechnologiessuchaswindand micro-turbine;biomass;hydroelectric;geothermalelectric; renewable fuel cell; tidal energy; wave energy; and anaerobic digestion.4Netexcessgenerationcanbemeasuredmonthly or annually. net excess generation additional, unused electricity produced by a distributed generation sourceAnne Roberts, Policy AnalystSouthern Legislative ConferenceDecember 2014Photo courtesy of Chris Hunkeler via fickr Creative Commons LicenseCHARGING FORWARD:NET METERING POLICIES IN SLC STATESA REGIONAL RESOURCE FROM THE SLC2 NET METERING POLICIES IN SLC STATESNationwide,moststatesnetmeteringpoliciesoftenarees-tablishedthroughlegislation,withthelegislativebranch directingthestatepublicutilitiescommissiontodraftand adoptadministrativerulestoimplementnetmetering. Whilesomestatesnetmeteringpoliciesapplytocustom-ersofalltypesofelectricutilities(suchasinvestor-owned utilities,municipalutilitiesandelectriccooperatives),oth-ers apply only to customers of investor-owned utilities. State policies vary widely by several other key criteria, including individual system capacity limits, aggregate system capacity limits,eligiblecustomertypes,eligiblesystemtypes,treat-mentofnetexcessgenerationattheendofabillingperiod, andownershipofrenewableenergycredits(RECs)associ-ated with customer generation.Capacity LimitsCapacitylimitsareusedtoregulatethesystemsizeofnet metered installations, generally with a kilowatt-based limit. AccordingtotheU.S.EnergyInformationAdministration, theaverageannualelectricityconsumptionforaU.S.resi- system capacity limit the maximum amount of service or number of customers that a system can provide services to at a defined level of service aggregate system capacity limit - the maximum amount of distributed generation energy that can be produced through the practice of utilizing a single generating system to offset electricity use on multiple meters renewable energy credit (REC) represents the property rights to the environmental, social and other non-power qualities of renewable electricity generation; an REC, and its associated attributes and benefits, can be sold separate from the underlying physical electricity associated with a renewable-based generation sourcedentialutilitycustomerin2012was10,837kilowatt-hours (kWh), an average of 903 kWh per month. Given that aver-age consumption rate, Missouri, for example, has authorized net metering for systems up to 100 kilowatts (kW), whereas Kentuckyhasauthorizednetmeteringforsystemsupto30 kW.5 However, in most SLC states, residential capacity lim-its range from 10 kW to 25 kW.Capacity limits vary widely by utility type, which can include customer,technologyandsystemtype.NorthCarolina, forexample,hasmadecapacitylimitsapplicableonlyfor investor-ownedutilities,6whileLouisianahasestablished limitsforcommercial,agriculturalandresidentialcustom-ers.7Statesalsooftenadoptdifferentcapacitylimitsfor individualsystemsandaggregatenetmeteringsystems.For example, Arkansas has established system capacity limits for individualcustomersbuthasnoaggregatenetmeteringca-pacity limit.8Compensation for Net Excess GenerationCustomers who participate in net metering receive credit for their net excess generation, generally on a monthly or annu-al basis, and the rate at which customers are credited varies. In West Virginia, customers receive credit at the retail rate** oneachsubsequentbill;however,creditdoesnotcarry-over from year to year.9 In Missouri, net excess generation is creditedtoacustomersnextbillatanavoided-costrate.10, In contrast, Oklahoma electric utilities and regulated electric ** retail rate the rate paid by consumers of electricity provided by a given utilityavoided-cost rate the cost the utility would incur if it was to generate or purchase power from another sourceA home with solar panels. Photo courtesy of Thomas Hart via fickr Creative Commons license.A standard bidirectional meter. Photo courtesy of Solar Decathlon via fickr Creative Commons license.NET METERING POLICIES IN SLC STATES 3cooperativesarenotrequiredtopurchasenetexcessgener-ationfromcustomers.11Notwithstandingtheseparticular regulations, in most SLC states, customers are credited at the fullretailelectricrate.Becauseelectricratesofteninclude costsassociatedwithmaintainingthegrid,suchaspoles, wires, meters and other infrastructure that make the electric gridsafeandreliable,notallutilitycompaniessupportthis policy.12Electriccompaniesmaintainthatreimbursingcus-tomersfornetexcessgenerationattheretailrateraisesthe costofelectricityforcustomerswhodonotparticipatein netmeteringprogramsandallowsnetmeteringcustomers to avoid contributing to the maintenance of the grid.Ownership of Renewable Energy Credits (RECs)Renewableenergycreditsrepresentthepropertyrightsto theenvironmental,social,andotheraspectsofrenewable electricitygeneration.AnREC,anditsassociatedattributes and benefits, can be sold separate from the underlying phys-ical electricity associated with a renewable-based generation source. State net metering policies often specify ownership of RECsearnedbyrenewableenergyproducersthroughelec-tricalgeneration.Statepoliciesdetermineifthedistributed generationcustomerretainsthecreditsoriftheyaretrans-ferred to the utility or cooperative that purchases the excess generation.OwningRECscanbecriticaltomeetingstate renewableportfoliostandards.InArkansas,13Kentucky,14 Missouri15andVirginia16thecustomer-generatorretains theirRECs.InNorthCarolina,theutilityownstheRECs unless the customer chooses to participate in a net metering program under a time-of-use tariff with demand charges.17 renewable portfolio standards a requirement in any given year, in a given state, that requires an electric utility to own credits (RECs) in an amount equal to a certain percentage of electric energy sold in the preceding calendar year by the electric utility to retail customerscustomer-generator an electric retail customer who owns and operates a customer-sited generation project utilizing an alternative or renewable energy resource or a net metering systemtime-of-use tariff electricity prices are set for a specific time period on an advance or forward basis, typically not changing more often than twice a year. Prices paid for energy consumed during these periods are pre-established and known to consumers in advance, allowing them to vary their usage in response to such pricesLiability and IndemnityBecauserenewablegenerationtechnologiesoftenare costly to acquire and install, many states have implemented measures to protect these investments. Some states, including Arkansas,FloridaandLouisiana,requirebothparties(the customer-generatorandtheelectricutility)toenterinto indemnity agreements. Other states, such as North Carolina, Virginia,andWestVirginia,requirecustomer-generators tocarryliabilityinsurance.Kentuckyrequiresthatthe customer-generatorcarryliabilityinsuranceandenterinto an indemnity agreement with the electric utility. Customer-generatorsinMissourimustcarryliabilityinsuranceif theyproducemorethan10kW.UnderOklahomaspolicy, electricutilitiesarenotallowedtorequirenewliability insuranceinadditiontothegeneratorsstandardproperty insurance.SLC State Net Metering PoliciesNetmeteringpoliciesvarystatebystate,duetoeachstates unique needs and concerns. This section briefly summarizes net metering policies in the SLC region by state. As indicat-edearlier,Alabama,MississippiandTennesseedonothave net metering policies in place and have not been included in the summary.ArkansasIn2001,thePublicServiceCommissionwasdirectedto establishnetmeteringrulesbyHouseBill2325.18Thelegis-lation empowered the Commission to establish appropriate rates,termsandconditionsfornetmeteringcontracts,in-cluding a requirement that metering equipment be installed tobothaccuratelymeasuretheelectricitysuppliedbythe electricutilitytoeachnetmeteringcustomerandalsoto accurately measure the electricity generated by each net me-teringcustomerthatisfedbacktotheelectricutilityover theapplicablebillingperiod.19ItalsopermittedtheCom-missiontoauthorizeautilitytoassessafeeorchargeifthe utilitys direct costs of interconnection*** and administration of net metering outweigh the distribution system, environ-mentalandpublicpolicybenefitsofallocatingcostsamong the electric utilitys entire customer base.20 The bill also gave *** interconnection a link between a utilitys network with equipment or facilities not belonging to that network4 NET METERING POLICIES IN SLC STATEStheCommissiontheauthoritytoexpandthescopeofnet metering.In2007,HouseBill2334wasenactedtoexpandtheavail-abilityofnetmetering.21In2012,theCommissionamended thenetmeteringrulestoexemptlocal,state,andfederal governmententitiesandagenciesfrompreviouslyrequired indemnityagreementsand,ayearlater,approvednewnet metering tariffs for all electric utilities under its jurisdiction.Renewableenergysystemsupto25kWincapacityand non-residential systems up to 300 kW in capacity are eligible for net metering. There is no limit specified for the aggregate capacityofallnetmeteredsystems.Customer-generators arepermittedtocarryovernetexcessgenerationmonthto monthduringanannualbillingcycleandretainownership of RECs. Net excess generation is credited at the utilitys re-tailrate;however,anyremainingnetexcessgenerationis forfeited to the utility four months after the end of each an-nual billing cycle.22FloridaThePublicServiceCommissionadoptedrulesfornetme-tering and interconnection for renewable energy systems up to2megawatts(MW)incapacityinMarchof2008.23These rulesapplyonlytoinvestor-ownedelectricutilities.The following June, the Legislature enacted House Bill 7135 con-firming that the Commission had the authority to adopt the March2008rules.24Thislegislationalsorequiredmunicipal electric utilities and cooperatives to develop a standardized interconnectionagreementandnetmeteringprogramfor customer-owned renewable generation by July 1, 2009.25UndertheCommissionsrules,netexcessgenerationis carried forward at the utilitys retail rate to a customers sub-sequentbillforupto12months.Attheendofa12-month billingperiod,theelectricutilitycompensatesthecustom-er-generator for any remaining net excess generation at the utilitys avoided-cost rate. Customer-generators retain own-ershipofRECs,butarepermittedtoselltheRECsbackto the utility.Allelectricutilitiesarerequiredtofileannualreports withtheCommission.Thesereportsdetailthenumber ofcustomer-generatorsandthesize,typeandlocationof theirrenewableenergysystems;theaggregatecapacityof netmeteredgeneration;amountofenergydeliveredtoand generatedfrominterconnectedcustomers;andtotalenergy paymentsmadetointerconnectedusers.26Althoughthe Commission does not have authority over municipal electric utilitiesandelectriccooperatives,theseelectricproviders also are required to file annual reports with the Commission.GeorgiaTheGeorgiaCogenerationandDistributedGenerationAct of2001requiredthatallelectricutilitiesmakeeitherbi-directional metering or single directional metering available tocustomer-generatorsdependingonhowthedistributed generationfacilityisconnectedtothedistributionsystem oftheelectricserviceprovided.27Eligiblerenewable technologiesincludephotovoltaics,windandfuelcells. Netmeteringprogramsareavailablethroughallelectric utilities and applicable to commercial, industrial, residential, nonprofit,local,stateandfederalgovernment,agricultural andeducationalsectors.Limitsforresidentialprojectsare setat10kW,andlimitsforcommercialprojectsaresetat 100kW.Theaggregatecapacityofdistributedgeneration systemsislimitedto0.2percentofautilityssystempeak demand from the previous year. Any net excess generation is creditedtothecustomer-generatorsbillatapredetermined ratefiledwiththePublicServiceCommission,thougha customermaychoosetosellallelectricityfromasystem, ratherthanusingthegeneratedelectricity.28Georgiaslaw does not address REC ownership.KentuckyIn2004,statewidenetmeteringlegislation,SenateBill247, wasenactedrequiringallinvestor-ownedutilitiesandrural electric cooperatives to offer net metering to customers with solar electric systems of 15 kW in capacity or less.29 In 2008, SenateBill83expandedthenetmeteringlawbyrequiring electric utilities to offer net metering to customers who gen-erate electricity with photovoltaic, wind, biomass, biogas or hydroelectricsystemswithcapacitiesupto30kW.30The bill directed the Public Service Commission to issue rules by January2009,andelectricutilitiesweregiven90daysfrom theissuedatetofiletariffs,includingalltermsandcondi-tions of net metering programs.With the exception of Tennessee Valley Authority utilities, net metering is available to all customers of investor-owned NET METERING POLICIES IN SLC STATES 5utilitiesandruralelectriccooperatives.31Netexcessgenera-tioniscreditedtothecustomer-generatorattheretailrate and credits are allowed to carry over indefinitely. The Com-missionisauthorizedtolimitautilitysobligationtooffer netmeteringifthecumulativegeneratingcapacityofnet metered systems reaches 1 percent of the utilitys single-hour peak load during the previous year.32 Under Kentuckys law, customers retain ownership of their RECs.LouisianaNetmeteringisavailableforresidentialcustomersupto25 kW in capacity. Net metering facilities may apply for, and be entitledto,stateorfederalfundingforaportionofproject costs. In 2008, Senate Bill 359 increased net metering capaci-ty limits of commercial and agricultural generators from 100 kWto300kW.33TheincreasewasapprovedbythePublic ServiceCommissioninMay2011and,thefollowingJuly, theCommissionadoptedstandardsthatdeterminetheap-propriate billing rate of renewable energy systems exceeding 300 kW capacity on a case-by-case basis.34 Once any utilitys netmeteringpurchasesexceed0.5percentofitsretailpeak, itnolongerisobligatedtooffernetmetering.Louisianas law does not address the ownership of RECs.MissouriUndertheprovisionsofSenateBill54,establishedin2007, netmeteringismadeavailabletocustomersonafirst-come,first-servedbasisuntilthetotalgeneratingcapacity ofallnetmeteringsystemsequals5percentoftheutilitys single-hour peak load during the previous year, after which thecommissionforapublicutilityorthegoverningbody for other electric utilities may increase the total rated gener-atingcapacityofnetmeteringsystemstoanamountabove 5percent.35Systemsmustbeintendedtooffsetpartorall of a customers electricity consumption and must be located onthepremisesowned,operated,leasedorotherwisecon-trolled by the customer-generator.36 RECs are owned by the customer-generator.UnlikemanySLCstates,customernetexcessgenerationis creditedattheutilitysavoided-costrate,nottheretailrate. Creditsexpireoneyearafterissuancewithoutcompensa-tion. Providers are required to offer the exact same electrical energy rates, rate structure, and monthly contractual or tar-iffchangestoregularcustomersandcustomer-generators. Finally, electric utilities must offer an all-in-one application for systems of 10 kW in capacity or less that includes a sim-pleinterconnectionrequest,proceduresandabriefsetof terms and conditions.37North CarolinaIn2005,theUtilitiesCommissionestablishedarequire-mentthatDukeEnergy,ProgressEnergyandDominion NorthCarolinaPower,thethreemajorinvestor-owned utilitiesinthestate,offernetmetering.38TheCommission required that net metering be made available to a utility cus-tomerthatownsandoperatesasolarphotovoltaicsystem, wind-powered,orbiomass-fueledrenewableenergyfacil-itywithoutbatterystorage.Therenewableenergyfacility may have a capacity of up to 20 kW for a residential custom-er-generatoranda100kW[capacity]foranon-residential customer-generator.39In2007,SenateBill3directedtheCommissiontoconsider allowinglargergeneratorstoparticipateinnetmetering programs. In 2009, after a thorough investigation, the Com-missiondidincreasesystemcapacitylimitsofrenewable energyfacilitiesto1MW.40TheCommissionalsoordered the three electric utilities to file annual reports indicating the number of net metering applicants and customer-generators, aggregate amounts of on-peak and off-peak generation cred-ited and ultimately granted by the utility, and the reasons for anyrejectionorremovalofcustomer-generatorsfromnet metering.Customersarepermittedtoparticipateinnetmetering programsunderanyavailablerateschedule.However,ifa customerchoosestoreceiveserviceunderanytariffoth-erthanatime-of-usedemandtariff,allRECsassociated withthegenerationmustbesurrenderedwithnocompen-sation.Underthetime-of-usetariff,on-peakgenerationis usedtooffseton-peakconsumption,andoff-peakgenera-tionisusedtooffsetoff-peakconsumption.Anyremaining on-peak generation is then used to offset off-peak consump-tion,whileoff-peakgenerationonlymaybeusedtooffset off-peak consumption.41OklahomaAnearlyproponentofnetmetering,theOklahomaCorpo-rationCommission(OCC)adoptedtermsandconditionsof 6 NET METERING POLICIES IN SLC STATESpurchasein1988,thefirstSLCstatetodoso.Theserules makenetmeteringavailabletoallcustomerclassesanddo notsetlimitsontheamountofaggregategeneration.Ad-ditionally, electric utilities are not permitted to require new liabilityinsuranceasaconditionforinterconnection.In 2014,theLegislaturepassedSenateBill1456,enablingelec-tricutilitiestopetitiontheCommissionforpermissionto apply a fixed charge to customer-generators who install net meteredgenerationonorafterNovember1,2014.42Imme-diately after signing the bill into law, Governor Mary Fallin issued an executive order clarifying that Senate Bill 1456 did notmandateanincreaseinelectricitychargesanddirected theCommissiontoconsideralternativeratereforms.43The lawdoesnotapplytoelectriccooperatives,whicharenot regulated by the Commission.Unliketherenewablesportfoliostandardsadoptedbyoth-erstates,whichrequireelectricutilitiestoretireRECsto demonstratecompliance,Oklahomadoesnotrequireelec-tric utilities to purchase and retire RECs. Instead, each utility in Oklahoma that owns or operates electricity generation fa-cilities must file a report with the OCC each year by March 1. The report must document the total installed capacity of all generation facilities, number of kilowatt-hours generated by each facility, and the energy source for each facility. Because ofthisdifference,Oklahomasnetmeteringpolicydoesnot address REC ownership.South CarolinaIn2014,theGeneralAssemblypassedSenateBill1189to create the voluntary Distributed Energy Resources Program andorderedthePublicServiceCommissiontodevelopnew netmeteringrules.Anexpansivebill,SenateBill1189of-feredmanyguidelinesregardingeligiblesystems,system size, cost recovery and rate structuring rules.Netmeteringislimitedtoresidentcustomerswithsystems of20kWincapacityorlessandnonresidentialcustomers withsystemsthatarelessthan1MWincapacityorthat meet100percentofdemand.44Thelawholdstheutilityre-sponsibleformaintaininganaccountoftotalelectricity producedandconsumed.Whenmoreelectricityispro-ducedthanconsumedinamonth,excesscreditscarryover to the next month. Electric utilities are required to compen-satecustomer-generatorsforanyexcesselectricproduction on an annual basis. Excess generation credits cannot be used to pay for non-volumetric charges.45, South Carolinas law does not explicitly address RECs.NewnetmeteringrateswillbeestablishedaftertheOffice ofRegulatoryStaffand/oroutsideconsultantsconducta cost-benefitanalysisofdistributedgeneration.46TheCom-mission will use the cost-benefit analysis to determine what costsareincrementalandrecoverableandanyadditional servicechargesthatcustomer-generatorsshouldpayinor-der to have access to the grid.Finally,thenewlawincludesagrandfatherclauseforcus-tomer-generatorsparticipatinginnetmeteredfacilities priortotheavailabilityofnewnetmeteringrates.These customer-generators are permitted to remain in historic net metering programs through December 31, 2020.47TexasCurrently,Texasdoesnotofferastatewidenetmetering program.However,thecitiesofBrenhamandElPasohave institutednetmeteringandinterconnectionprocedures. Additionally, Austin Energy, the municipal utility of Austin, Texas,andSanAntonioCityPublicService(CPSEnergy) havemadenetmeteringavailabletotheircustomers.REC ownershipisnotspecifiedinthepoliciesofthecitiesof Brenham and El Paso, nor is it specified under Austin Ener-gys policy. CPS Energy offers a rebate program to customers who enroll in net metering. If customers choose to enroll in this program, REC ownership is transferred to CPS Energy. Table 1 provides an overview of these four programs.VirginiaIn1999,netmeteringwasestablishedwiththepassageof Senate Bill 1269, or the Virginia Electric Utility Restructuring Act, as currently amended, and makes net metering available onafirst-come,first-servedbasisuntilthecapacityowned and operated by customer-generators reaches 1 percent of an electricdistributioncompanysadjustedVirginiapeak-load forecastforthepreviousyear.48InApril2009,thegovernor signedHouseBill2155intolaw,makingchangestothenet metering policy in Virginia. The revised law allowed electric utilities to approve a higher capacity limit at their discretion non-volumetric charge a flat charge to the end-use customer regardless of the amount of consumption for a given period of timeNET METERING POLICIES IN SLC STATES 7Table 1: Texas Net Metering ProgramsJurisdiction / UtilityEligible Renewable Applicable Sectors System Capacity Limit Net Excess Generation AuthorityBrenhamPhotovoltaics, wind, biomass, micro-turbines, other distributed generation technologiesCommercial, industrial, residential, general public/consumer, nonprofit, schools, state government, agricultural, institutional10 MW Monthly excess credited at utilitys avoided-cost rateDistributed-generation ordinance, enacted 09/16/2010El Paso ElectricSolar thermal electric, photovoltaics, wind, biomass, geothermal electric, small hydroelectric, wave energy, fuel cells using renewable fuels, other distributed generation technologiesCommercial, residential, nonprofit, schools, local government, construction, multi-family residential, low-income residential, institutionalFor most customer-generators: 50 kW or 100 percent of estimated/act-ual electricity consumption, whichever is lessCredited to customer-generator at avoided-cost rate; if credits exceed $50, a refund check is issuedTexas Utilities Code 39.554, effective 06/17/2011; Public Utilities Commission of Texas Substantive Rues 25.211 and El Paso Electric Company Schedule No. 48, effective 09/01/2011San Antonio City Public Service (CPS Energy)Photovoltaics Commercial, industrial, residential, nonprofit, schools, institutionalNone Customer-generator reimbursed at avoided-cost rate ($0.0165/kWh)CPS EnergyAustin EnergySolar thermal electric, photovoltaics, landfill gas, wind, biomass, geothermal electric, municipal solid waste, anaerobic digestion, small hydroelectric, tidal energy, wave energyCommercial 20 kW Credited to customers next bill at avoided-cost rateOrdinance No. 20120607- 055-Distributed-generation from Renewable Sources Rider, enacted 06/07/2012Source: Database of State Incentives for Renewables & Efficiencyandpermittedcustomersservedonthebasisoftime-of-use tariffs to participate in net metering. The law also established ownershipofRECsforthecustomer-generator.Customers areofferedaone-timeoptiontoselltheirRECstothe utility, but this does not preclude the utility from voluntarily enteringintoanagreementforthesaleandpurchaseof RECs at any time.49In2011,HouseBill1983requiredresidentialcustomer-generatorsexceeding10kWincapacitytopayamonthly standbycharge,developedbytheutilityandapprovedby theCorporationCommission.50DominionPowerhasbeen approvedtochargeatransmissionanddistributionstandby chargetoanyresidentialnetmeteringcustomerwhoowns andoperates,orcontractstoownandoperate,anelectric generationsystemwithacapacitygreaterthan10kWand lessthan20kW.51Thenetmeteringpolicywasamended againin2013withthepassageofHouseBill1695,creating netmeteringprogramsforagriculturalcustomersof investor-ownedutilitiesandelectriccooperatives.52House Bill 1695 allows for net excess generation to be carried over onamonthlybasis.Attheendofeach12-monthperiod, customer-generatorshavetheoptiontocarryoveranynet excessgenerationorsellittotheutilityatthewholesale cost.Thecreditamountcarriedforwardcannotexceedthe amount of energy purchased during the previous year.West VirginiaInJanuary2007,thePublicServiceCommissionissued anorderacceptingthestatesconsensusagreementonin-terconnectionandnetmetering;theagreementincluded provisionsforinterconnectingnetmeteredsystems.53In 2009,HouseBill103directedtheCommissiontoadoptnet meteringandinterconnectionrulesandstandards.54Under theserules,netmeteringisavailabletoallretailelectricity 8 NET METERING POLICIES IN SLC STATEScustomers.Systemcapacitylimitsvarydependingonthe customertypeandelectricutilitytype,asspecifiedbythe Commission.Therulesrequirethatnetmeteringtariffsbe identicaltothetariffforwhichthecustomerwouldqualify ifthatcustomerwasnotacustomer-generator,intermsof rate structure, retail-rate components and monthly charges. Customersonatime-of-usetariffarepermittedtopartici-pate in net metering programs. Net excess generation can be carried over to each subsequent bill of a customer-generator. REC ownership is not specified under West Virginias rules.ConclusionAstheuseofdistributedgenerationtechnologycontinues to grow, electric utility customers likely will continue to call for access to net metering programs. It is important for state policymakers and public utility commissions to continue to balancecustomerdemandwiththeimpactsthatdistributed generationtechnologieshaveontheelectricpowergridas well as the electric utilities. This balance may include assess-ingtheactualcostsandbenefitstotheutility,trackingthe numberofparticipantsinnetmeteringprograms,andfor-mulating rate structures that require customer-generators to contribute to the maintenance of the grid.Additionally, the examination of access to renewable genera-tion technologies and net metering programs by low-income individuals and what policies can be developed to expand this opportunity also may be a consideration by policymakers.From2012to2013,solargenerationintheSouthernre-gion(includingMaryland,PuertoRicoandtheU.S.Virgin Islands)grewby87percent.55Whilesolargenerationrep-resentsonlyonesegmentofrenewablegeneration,itis instructivetonotegrowthinthisindustryasitrelatesto thepromulgationofadditionalregulationinareasnotim-mediatelyassociatedwithnetmetering.Policymakersmay considercraftingregulationsfortheprotectionofpublic safetyofficials,suchasfirefighters.Suchregulationscould includespecificationsonaccessandspacingofphotovolta-ic panels to ensure roof access, provide pathways to specific areas of the roof, and provide opportunities for smoke venti-lation areas and to provide safe emergency access to the roof. These conversations, which are just beginning in some SLC states,provideanopportunityforcontinuedlegislativeac-tion in the Southern region.Glossary aggregate system capacity limit the maximum amount of energy that can be produced through the practice of utilizing a single distributed generation system to ofset electricity use on multiple meters avoided-cost rate the cost the utility would incur if it was to generate or purchase power from another source customer-generator an electric retail customer who owns and operates a customer-sited generation project utilizing an alternative or renewable energy resource or a net metering system distributed generation power generation at the point of consumption; a common example of a type of distributed generation is residential roof-top solar panels interconnection a link between a utilitys network with equipment or facilities not belonging to that network net excess generation additional, unused electricity produced by a distributed generation source net metering a billing system that allows utility customers to use the electricity they generate in excess of their consumption to ofset their use of electricity from the grid non-volumetricchargeafatchargetotheend-usecustomer regardless of the amount of consumption for a given period of time renewable energy credit (REC) represents the property rights to the environmental,social,andotherqualitiesofrenewableelectricity generation;aREC,anditsassociatedattributesandbenefts,can be sold separate from the underlying physical electricity associated with a renewable-based generation source renewable portfolio standards a requirement in any given year, in a given state, that mandates an electric utility to own credits (RECs) in an amount equal to a certain percentage of electric energy sold in the preceding calendar year by the electric utility to retail customers retail rate the rate paid by consumers of electricity provided by a given utility system capacity limit the maximum amount of service or number of customers that a system can provide services to at a defned level of service time-of-use tarif electricity prices are set for a specifc time period on an advance or forward basis, typically not changing more often thantwiceayear;pricespaidforenergyconsumedduringthese periodsarepre-establishedandknowntoconsumersinadvance, allowing them to vary their usage in response to such prices volumetricchargeasingle,averageratemultipliedagainstthe number of kWh and/or kW consumedNET METERING POLICIES IN SLC STATES 9References1.Pamela Prah, Utilities, Solar Advocates Clash Over Net Metering Stateline, February 19, 2014, http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2014/02/19/states-brace-for-utilities-solar-advocates-clash.2.Ibid.3.Policies for Compensating behind-the-Meter Generation Vary by State - Today in Energy - U.S. Energy Information Administration (EIA), U.S. Energy Information Administration, accessed September 22, 2014, http://www.eia.gov/todayinenergy/detail.cfm?id=6190. (accessed September 22, 2014)4.DSIRE, DSIRE USA, accessed September 16, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=AR03R. (accessed September 16, 2014)5.Missouri Incentives/Policies, DSIRE USA, accessed September 17, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=MO07R. (accessed September 17, 2014)6.North Carolina Incentives/Policies, DSIRE USA, accessed September 17, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=NC05R. (accessed September 17, 2014)7.Louisiana Incentives/Policies, DSIRE USA, accessed September 17, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=LA02R. (accessed September 17, 2014)8.Arkansas Incentives/Policies, DSIRE USA, accessed September 16, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=AR03R. (accessed September 16, 2014)9.West Virginia Incentives/Policies, DSIRE USA, accessed September 18, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=WV03R. (accessed September 18, 2014)10.Missouri Incentives/Policies.11.Oklahoma Incentives/Policies, DSIRE USA, accessed September 17, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=OK01R. (accessed September 17, 2014)12.Diane Cardwell, Solar Payments Set Off a Fairness Debate, The New York Times, June 4, 2012, sec. Business Day, http://www.nytimes.com/2012/06/05/business/solar-payments-set-off-a-fairness-debate.html.13.Arkansas Incentives/Policies.14.Kentucky Incentives/Policies, accessed September 16, 2014, http://www.seia.org/policy/distributed-solar/net-metering. (accessed September 16, 2014)15.Missouri Incentives/Policies.16.Virginia Incentives/Policies, DSIRE USA, accessed September 18, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=VA02R. (accessed September 18, 2014)17.North Carolina Incentives/Policies.18.Judy, Rodgers, and Riggs, House Bill 2325, accessed September 23, 2014, http://lses.org/version1/hb2325.html. (accessed September 23, 2014)19.Ibid.20.Ibid.21.Smith and Broadway, House Bill 2334, 2007, ftp://www.arkleg.state.ar.us/bills/2007/public/HB2334.pdf.22.Arkansas Incentives/Policies. Branscum, House Bill 2019, 2013, http://www.arkleg.state.ar.us/assembly/2013/2013R/Bills/HB2019.pdf.23.Florida Incentives/Policies, DSIRE USA, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=FL19R. (accessed November 18, 2014)24.House Bill 7135, 2008, http://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h7135er.docx&DocumentType=Bill&BillNumber=7135&Session=2008.25.Ibid.26.Florida Incentives/Policies.27.The Georgia Cogeneration and Distributed Generation Act of 2001, 2001, http://prod-http-80-800498448.us-east-1.elb.amazonaws.com/w/images/9/9d/GA04R.pdf.28.Georgia Incentives/Policies, DSIRE USA, accessed September 16, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=GA02R. (accessed September 16, 2014)29.Legislative Research Commission, General Assembly Action, Informational Bulletin (Frankfort, Kentucky: Legislative Research Commission, May 2004), http://www.lrc.ky.gov/lrcpubs/IB214.pdf.30.Legislative Research Commission, General Assembly Action, Informational Bulletin (Frankfort, Kentucky: Legislative Research Commission, May 2008), http://www.lrc.ky.gov/lrcpubs/ib226.pdf.31.Kentucky Incentives/Policies.32.Ibid.33.Rebecca Mowbray, State-Increased Size of Alternative Energy Systems Hooked up to Power Grids Could Boost Solar-Panel Installations, The Times-Picayune - NOLA.com, August 17, 2008, http://www.nola.com/business/index.ssf/2008/08/the_state_has_increased_the_ma.html.34.Louisiana Incentives/Policies.35.SB54 - Modifies Provisions Relating to Renewable Energy, Alternative Fuel, and Environmental Regulation, accessed September 23, 2014, http://www.senate.mo.gov/07info/BTS_Web/Bill.aspx?SessionType=R&BillID=128. (accessed September 23, 2014)36.Missouri Incentives/Policies.37.Ibid.38.State of North Carolina Utilities Commission, Order Adopting Net Metering (Raleigh, October 10, 2005), http://starw1.ncuc.net/NCUC/ViewFile.aspx?Id=766d7127-977d-4312-a98c-e2fc6fa09742.39.Ibid.40.State of North Carolina Utilities Commission, Order Amending Net Metering Policy (Raleigh, March 31, 2009), http://starw1.ncuc.net/NCUC/ViewFile.aspx?Id=f1b29a03-4445-4930-9dfd-14682ceb368e.41.North Carolina Incentives/Policies.42.Griffin et al., Senate Bill 1456, 2014, http://webserver1.lsb.state.ok.us/cf_pdf/2013-14%20ENR/SB/SB1456%20ENR.PDF.43.Gov. Mary Fallin - Executive Order 2014-07, accessed September 24, 2014, https://www.documentcloud.org/documents/1146319-gov-mary-fallin-executive-order-2014-07.html. (accessed September 24, 2014)44.Gregory et al., Senate Bill 1189, 2014, http://www.scstatehouse.gov/sess120_2013-2014/prever/1189_20140521.htm.45.South Carolina Incentives/Policies, DSIRE USA, accessed September 17, 2014, http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=SC09R. (accessed September 17, 2014)46.Gregory et al., South Carolina Distributed Energy Resource Program.47.Ibid.48.Net Metering, accessed September 16, 2014, http://www.seia.org/policy/distributed-solar/net-metering. (accessed September 16, 2014)49.David Tuscano et al., House Bill 2155, 2009, https://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+HB2155H1.50.Terry Kilgore et al., House Bill 1983, 2011, http://www.dsireusa.org/documents/Incentives/2011%20HB%201983.pdf.51.Virginia Incentives/Policies.52.Randall Minchew et al., House Bill 1695, 2013, https://leg1.state.va.us/cgi-bin/legp504.exe?131+mbr+HB1695.53.Office US EPA, West Virginia | State and Local Climate and Energy Program | US EPA, Choose from the 8 types, choose only 1, accessed October 7, 2014, http://www.epa.gov/statelocalclimate/state/tracking/individual/wv.html.54.Thompson and Armstead, House Bill 103, 2009, 103, http://www.legis.state.wv.us/Bill_Status/bills_text.cfm?billdoc=hb103%20ENR.htm&yr=2009&sesstype=1X&i=103.55.Southern States Regional Energy Profile (Southern States Energy Board, 2014), http://www.sseb.org/wp-content/uploads/2014/07/2014-Southern-States-Energy-Profiles_FINAL.pdf.10 NET METERING POLICIES IN SLC STATESTable 2: SLC Net Metering ProgramsState Arkansas Florida Georgia Kentucky Louisiana Missouri North Carolina Oklahoma South Carolina Virginia West VirginiaAuthorityCode 23-18-601 et seq., effective 10/01/2001; PSC Order No. 8, Docket 06-105-U, enacted 11/27/2007; PSC Order No. 7, Docket No. 12-060-R, enacted 09/03/2013 and HB 2019, enacted 04/12/2013 25-6.065, F.A.C., effective 4/7/2008 and Statute 366.91, effective 7/01/2008O.C.G. 46-3-50 et seq., effective 06/01/2002KRS 278.465 et seq., effective 07/13/2004 and amended effective 07/15/2008 and PSC Order 2008-00169, enacted 01/08/2009R.S. 51:3061 et seq., effective 10/01/2003; PSC Order, Docket No. R-27558, effective 11/30/2005 and PSC Docket No. R-31417, effective 06/26/2013386.890 R.S. MO, effective 01/01/2008 and 4CSR 240-20.065, effective 02/28/2009 (subsequently amended)NCUC Order, Docket No. E-100, Sub 83, enacted 10/20/2005; NCUC Order, Docket No. E-100, Sub 83, enacted 12/27/2005; NCUC Order, Docket No. E-100, Sub 83, enacted 7/26/2006 and NCUC Order, Docket No. E-100, Sub 83, effective 06/01/2009O.A.C 165:40-9-1, et seq., enacted 5/23/1988; Senate Bill1456, effective 11/01/2014 and Executive Order 2014-07, effective 04/21/2014Senate Bill 1198, effective 06/02/2014Virginia Code 56-594, effective 07/01/2000; 20 VAC 5-315-10 et seq., effective 05/25/2000; SCC Order Adopting Net Metering Regulations (PUE-2009-00105), effective 04/28/2010; HB 1983, effective 07/10/2011 and HB 1695, enacted 03/13/2013General Order 184.2; West Virginia Code 24-2F-1 et seq., effective 07/01/2009; General Order No. 258, effective 08/30/2010 and General Order No. 258.1, effective 07/18/2011Eligible RenewableSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, microturbines using renewable fuels, small hydroelectric, fuel cells using renewable fuels, microturbinesSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, CHP/cogeneration, hydrogen, small hydroelectric, tidal energy, wave energy, ocean thermalPhotovoltaics, wind, fuel cells, fuel cells using renewable fuelsPhotovoltaics, wind, biomass, hydroelectric, biogas, small hydroelectricPhotovoltaics, wind, biomass, hydroelectric, geothermal electric, small hydroelectric, fuel cells using renewable fuels, microturbinesSolar thermal electric, photovoltaics, wind, hydroelectric, small hydroelectric, fuel cells using renewable fuelsPhotovoltaics, landfill gas, wind, biomass, hydroelectric, hydrogen, anaerobic digestion, small hydroelectric, tidal energy, wave energy, fuel cells using renewable fuelsSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, CHP/cogeneration, small hydroelectricSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, CHP/cogeneration, hydrogen, small hydroelectric, tidal energy, wave energy, fuel cells using renewable fuelsSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, small hydroelectric, tidal energy, wave energySolar thermal electric, photovoltaics, landfill gas, wind, biomass, hydroelectric, geothermal electric, fuel cells, small hydroelectric, renewable fuels, fuel cells using renewable fuelsApplicable SectorsCommercial, industrial, residential, general public/consumer, nonprofit, schools, local government, state government, federal government, agricultural, institutionalCommercial, industrial, residential, nonprofit, schools, local government, state government, tribal government, federal government, agricultural, institutionalCommercial, industrial, residential, nonprofit, schools, local government, state government, federal government, agricultural, institutionalCommercial, residential, nonprofit, schools, local government, state government, agricultural, institutionalCommercial, residential, agriculturalCommercial, industrial, residential, nonprofit, schools, local government, state government, federal government, agricultural, institutionalCommercial, industrial, residential, nonprofit, schools, local government, state government, tribal government, federal government, agricultural, institutionalCommercial, industrial, residential, general public/consumer, schools, local government, state government, federal governmentCommercial, residential, general public/consumer, nonprofit, schools, utility, investor-owned utility, institutionalCommercial, residential, nonprofit, schools, local government, state government, agricultural, institutionalCommercial, industrial, residential, nonprofit, local government, multi-family residential, agriculturalApplicable UtilitiesInvestor-owned utilities and electric cooperativesInvestor-owned utilities All utilities Investor-owned utilities, electric cooperatives (except TVA distribution utilities)All utilities All utilities Investor-owned utilities Investor-owned utilities, regulated electric cooperativesAll utilities with more than 100,000 customers, excluding cooperativesInvestor-owned utilities, electric cooperativesAll utilitiesNet Excess GenerationCredited to customers next bill at retail rate.Following an annual billing cycle, up to an amount equal to 4 months average usage can be carried over into the next annual billing cycleCredited to customers next bill at retail rate; excess reconciled annually at avoided-cost rateCredited to customers next bill at a predetermined rate filed with the Public Service CommissionCredited to customers next bill at retail rate; carries over indefinitelyCredited to customers next bill at retail rate; carries over indefinitelyCredited to customers next bill at avoided-cost rate; credits expire after 12 monthsCredited to customers next bill at retail rate; granted to utility at beginning of summer billing seasonUtilities and regulated electric cooperatives are not required to purchase monthly net excess generation from customersCredited to customers next bill on a monthly basis; annual pay out to customer zeros out monthly carryoverCredited to customers next bill at retail rate; after 12-month cycle, customer may opt to carryover credit indefinitely or to receive payment at avoided-cost rateCredited to customers next bill at retail rate with no annual true-up (perpetual carryover)System Capacity Limit300 kW for non-residential; 25 kW for residential2 MW 100 kW for non-residential; 10 kW for residential30 kW Commercial and agricultural: 300 kW; Residential: 25 kW100 kW Individual system:1 MW; residential: 20 kW; non-residential 100 kW100 kW or less; 25,000 kWh/year or less20 kW for residential; 1,000 kW or 100 percent of demand for non-residential500 kW for non-residential; 20 kW for residentialInvestor-owned utilities with more than 30,000 customers: 2 MW for industrial; 500 kW for commercial; 25 kW for residential. Investor-owned utilities with fewer than 30,000 customers, municipal utilities and cooperatives: 50 kW for commercial and industrial; 25 kW for residentialSource: Database of State Incentives for Renewables & EfficiencyNET METERING POLICIES IN SLC STATES 11Table 2: SLC Net Metering ProgramsState Arkansas Florida Georgia Kentucky Louisiana Missouri North Carolina Oklahoma South Carolina Virginia West VirginiaAuthorityCode 23-18-601 et seq., effective 10/01/2001; PSC Order No. 8, Docket 06-105-U, enacted 11/27/2007; PSC Order No. 7, Docket No. 12-060-R, enacted 09/03/2013 and HB 2019, enacted 04/12/2013 25-6.065, F.A.C., effective 4/7/2008 and Statute 366.91, effective 7/01/2008O.C.G. 46-3-50 et seq., effective 06/01/2002KRS 278.465 et seq., effective 07/13/2004 and amended effective 07/15/2008 and PSC Order 2008-00169, enacted 01/08/2009R.S. 51:3061 et seq., effective 10/01/2003; PSC Order, Docket No. R-27558, effective 11/30/2005 and PSC Docket No. R-31417, effective 06/26/2013386.890 R.S. MO, effective 01/01/2008 and 4CSR 240-20.065, effective 02/28/2009 (subsequently amended)NCUC Order, Docket No. E-100, Sub 83, enacted 10/20/2005; NCUC Order, Docket No. E-100, Sub 83, enacted 12/27/2005; NCUC Order, Docket No. E-100, Sub 83, enacted 7/26/2006 and NCUC Order, Docket No. E-100, Sub 83, effective 06/01/2009O.A.C 165:40-9-1, et seq., enacted 5/23/1988; Senate Bill1456, effective 11/01/2014 and Executive Order 2014-07, effective 04/21/2014Senate Bill 1198, effective 06/02/2014Virginia Code 56-594, effective 07/01/2000; 20 VAC 5-315-10 et seq., effective 05/25/2000; SCC Order Adopting Net Metering Regulations (PUE-2009-00105), effective 04/28/2010; HB 1983, effective 07/10/2011 and HB 1695, enacted 03/13/2013General Order 184.2; West Virginia Code 24-2F-1 et seq., effective 07/01/2009; General Order No. 258, effective 08/30/2010 and General Order No. 258.1, effective 07/18/2011Eligible RenewableSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, microturbines using renewable fuels, small hydroelectric, fuel cells using renewable fuels, microturbinesSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, CHP/cogeneration, hydrogen, small hydroelectric, tidal energy, wave energy, ocean thermalPhotovoltaics, wind, fuel cells, fuel cells using renewable fuelsPhotovoltaics, wind, biomass, hydroelectric, biogas, small hydroelectricPhotovoltaics, wind, biomass, hydroelectric, geothermal electric, small hydroelectric, fuel cells using renewable fuels, microturbinesSolar thermal electric, photovoltaics, wind, hydroelectric, small hydroelectric, fuel cells using renewable fuelsPhotovoltaics, landfill gas, wind, biomass, hydroelectric, hydrogen, anaerobic digestion, small hydroelectric, tidal energy, wave energy, fuel cells using renewable fuelsSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, CHP/cogeneration, small hydroelectricSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, CHP/cogeneration, hydrogen, small hydroelectric, tidal energy, wave energy, fuel cells using renewable fuelsSolar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, small hydroelectric, tidal energy, wave energySolar thermal electric, photovoltaics, landfill gas, wind, biomass, hydroelectric, geothermal electric, fuel cells, small hydroelectric, renewable fuels, fuel cells using renewable fuelsApplicable SectorsCommercial, industrial, residential, general public/consumer, nonprofit, schools, local government, state government, federal government, agricultural, institutionalCommercial, industrial, residential, nonprofit, schools, local government, state government, tribal government, federal government, agricultural, institutionalCommercial, industrial, residential, nonprofit, schools, local government, state government, federal government, agricultural, institutionalCommercial, residential, nonprofit, schools, local government, state government, agricultural, institutionalCommercial, residential, agriculturalCommercial, industrial, residential, nonprofit, schools, local government, state government, federal government, agricultural, institutionalCommercial, industrial, residential, nonprofit, schools, local government, state government, tribal government, federal government, agricultural, institutionalCommercial, industrial, residential, general public/consumer, schools, local government, state government, federal governmentCommercial, residential, general public/consumer, nonprofit, schools, utility, investor-owned utility, institutionalCommercial, residential, nonprofit, schools, local government, state government, agricultural, institutionalCommercial, industrial, residential, nonprofit, local government, multi-family residential, agriculturalApplicable UtilitiesInvestor-owned utilities and electric cooperativesInvestor-owned utilities All utilities Investor-owned utilities, electric cooperatives (except TVA distribution utilities)All utilities All utilities Investor-owned utilities Investor-owned utilities, regulated electric cooperativesAll utilities with more than 100,000 customers, excluding cooperativesInvestor-owned utilities, electric cooperativesAll utilitiesNet Excess GenerationCredited to customers next bill at retail rate.Following an annual billing cycle, up to an amount equal to 4 months average usage can be carried over into the next annual billing cycleCredited to customers next bill at retail rate; excess reconciled annually at avoided-cost rateCredited to customers next bill at a predetermined rate filed with the Public Service CommissionCredited to customers next bill at retail rate; carries over indefinitelyCredited to customers next bill at retail rate; carries over indefinitelyCredited to customers next bill at avoided-cost rate; credits expire after 12 monthsCredited to customers next bill at retail rate; granted to utility at beginning of summer billing seasonUtilities and regulated electric cooperatives are not required to purchase monthly net excess generation from customersCredited to customers next bill on a monthly basis; annual pay out to customer zeros out monthly carryoverCredited to customers next bill at retail rate; after 12-month cycle, customer may opt to carryover credit indefinitely or to receive payment at avoided-cost rateCredited to customers next bill at retail rate with no annual true-up (perpetual carryover)System Capacity Limit300 kW for non-residential; 25 kW for residential2 MW 100 kW for non-residential; 10 kW for residential30 kW Commercial and agricultural: 300 kW; Residential: 25 kW100 kW Individual system:1 MW; residential: 20 kW; non-residential 100 kW100 kW or less; 25,000 kWh/year or less20 kW for residential; 1,000 kW or 100 percent of demand for non-residential500 kW for non-residential; 20 kW for residentialInvestor-owned utilities with more than 30,000 customers: 2 MW for industrial; 500 kW for commercial; 25 kW for residential. Investor-owned utilities with fewer than 30,000 customers, municipal utilities and cooperatives: 50 kW for commercial and industrial; 25 kW for residentialSource: Database of State Incentives for Renewables & EfficiencyTHE SOUTHERN OFFICE OF THE COUNCIL OF STATE GOVERNMENTSREGIONAL VIEW NATIONAL REACHThisreportwaspreparedbyPolicyAnalyst AnneRobertsfortheEnergy&Environ-ment Committee of the Southern Legislative Conference(SLC)ofTheCouncilofState Governments (CSG), under the chairmanship of Repre-sentative William E. Bill Sandifer III of South Carolina. Thisreportreflectsthebodyofpolicyresearchmade available to appointed and elected officials by the South-ern Office.TheSouthernOfficeofTheCouncilofStateGov-ernments,locatedinAtlanta,Georgia,fostersand encouragesintergovernmentalcooperationamongits 15memberstates.Inlargemeasure,thisisachieved throughtheongoingworkofthestandingcommittees ofitsSouthernLegislativeConferenceandsupporting groups.Throughmemberoutreachinstatecapitols, policy research, international member delegations, staff exchangeprograms,meetingsandfly-ins,staffsupport state policymakers and legislative staff in their work to build a stronger region.Foundedin1947,theSLCisamember-drivenorgani-zation and the largest of four regional legislative groups operatingunderCSGandcomprisesthestatesofAla-bama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi,Missouri,NorthCarolina,Oklahoma, SouthCarolina,Tennessee,Texas,VirginiaandWest Virginia.TheSLCssixstandingcommitteesprovideaforum which allows policymakers to share knowledge in their area of expertise with colleagues from across the South. ByworkingtogetherwithintheSLCandparticipat-ing on its committees, Southern state legislative leaders areabletospeakinadistinctive,unifiedvoicewhile addressingissuesthataffecttheirstatesandtheentire region.