According to the United States Energy Policy Act of 2005, all public electric utilities must now make net metering available to their customers upon request:
‘‘Net metering.—Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term ‘net metering service’ means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.”
Basically, this means that operators of renewable electricity facilities which feed power into the power grid can be reimbursed for at least some of the electricity which they provide to the grid. It generally applies to customers who generate their own electricity through an alternative generating system, such as solar or wind power. The program is available to both businesses and consumers trying to save on the carbon footprint of their property through use of alternative fuels.
These businesses and consumers can make an agreement with their utility company to provide extra energy to the power company; on the other hand, when they are not generating enough power to fill their own needs, the power company provides power for them as for regular utility customers. During the times when the consumer is generating excess power, the consumer’s electric meter runs backwards. The power company provides credit for the excess electricity generated; the customer essentially “banks” the excess power he has generated and can have it back at a later time. The process adds power to the grid, and is especially helpful in areas where there are energy shortages. The process also encourages customers to keep track of their power usage, as well as to adopt renewable energy generation techniques as an environmentally friendly money–saving measure.
Forty–two states and D.C. have adopted a net metering policy, although in many states, the policy applies only to certain types of utilities, such as investor–owned utility companies. Before net metering was adopted, consumers who generated their own electricity had to install expensive battery banks to store the extra electricity they had generated in order to use the excess electricity later. So net metering has been a boon to consumers and has proven helpful in providing more energy to local utilities.
Green Research Council
