Net Metering. Chandra Shah, NREL. May 8, FUPWG Spring 2014

Transcription

1 Net Metering FUPWG Spring 2014 Chandra Shah, NREL May 8, Energy Efficiency and Renewable Energy eere.energy.gv

2 Overview Net metering definitin and key cnsideratins Net metering infrmatin n Database f State Incentives fr Renewables & Efficiency (DSIRE) State net metering prgram examples Example renewable prject steps Meter aggregatin and virtual net metering Distributed generatin cst/benefits studies Resurces and ther infrmatin 2

3 Net Metering Definitin Fr electric custmers wh generate their wn electricity, net metering allws fr the flw f electricity bth t and frm the custmer typically thrugh a single, bi-directinal meter. When a custmer s generatin exceeds the custmer s use, electricity frm the custmer flws back t the grid, ffsetting electricity cnsumed by the custmer at a different time during the same billing cycle. In effect, the custmer uses excess generatin t ffset electricity that the custmer therwise wuld have t purchase at the utility s full retail rate. Net metering is required by law in mst U.S. states, but state plicies vary widely. Surce: Database f State Incentives fr Renewables & Efficiency (DSIRE) - 3

4 Net Metering Cnsideratins Research net metering rules carefully! Eligibility ensure that yur prject fits the criteria Allwable technlgy Maximum prject size (referred t as system capacity limit n DSIRE) Custmer type Utility - IOU vs. public utility REC wnership Treatment f net excess generatin Additinal fees such as standby charges (if any) Aggregate capacity limit Cntractual requirements 4

5 5

6 6 DSIRE - Net Metering Infrmatin fr Clrad

7 Example State Net Metering Prgrams Net metering plicies vary widely. Examples: Sme states (such as Texas) d nt have a net metering plicy Must find ther ptins fr excess electricity sale: ex. Register as a Qualified Facility and sell pwer under Public Utility Regulatry Plicies Act f 1978 (PURPA) Usually at utility's avided cst (a whlesale rate) r a negtiated rate New Mexic REC Ownership: Utility wns RECs Net Excess Generatin: Credited t custmer's next bill at avided-cst rate r recnciled mnthly at avided-cst rate System Capacity Limit: 80 MW Aggregate Capacity Limit: N limit specified 7

8 Example State Net Metering Prgrams Clrad Net Excess Generatin: Credited t custmer's next bill at retail rate. IOUs: At end f year custmers can rll ver credit indefinitely r receive payment at average hurly incremental cst Municipality and c-ps: annual recnciliatin at a rate they deem apprpriate System Capacity Limit: IOU custmers: 120% f the custmer's average annual cnsumptin. Municipality and c-p custmers: 25 kw fr nn-residential; 10 kw fr residential Aggregate Capacity Limit: N limit specified New Jersey Net Excess Generatin: Generally credited t custmer's next bill at retail rate; excess recnciled annually at avided-cst rate System Capacity Limit: N capacity limit specified, but system must be sized s that energy prductin des nt exceed custmer's annual n-site energy cnsumptin Aggregate Capacity Limit: N limit specified (Bard f Public Utilities may limit t 2.5% f peak demand) 8

9 Example State Net Metering Prgrams Califrnia Net Excess Generatin (NEG): Credited t custmer's next bill at retail rate. At end f year custmers can rll ver credit indefinitely r t receive payment at 12-mnth average spt market price (fr 7 am t 5 pm) If custmer makes n affirmative decisin, credit is granted t utility with n cmpensatin fr custmer System Capacity Limit: 1 MW Aggregate Capacity Limit: 5% f aggregate custmer peak demand (statewide limit f 500 MW fr fuel cells) REC Ownership: Custmer wns RECs. If custmer receives NEG payment at end f year, then utility wns RECs assciated with the NEG Restrictin n Additinal Fees N new r additinal charges (demand, standby, intercnnectin, minimum mnthly, etc.) beynd thse f ther custmers in the rate class t which the eligible custmer-generatr wuld therwise be assigned CPUC ruling that technlgies eligible fr net metering (up t 1 MW) are exempt frm intercnnectin applicatin fees and initial/supplemental intercnnectin review fees 9

10 Example Renewable Prject Steps Research net metering plicies fr yur state/utility n DSIRE, then cnfirm all infrmatin with yur utility. (Frm DSIRE hme page, click n yur state, then scrll dwn t the Net Metering sectin under Rules, Regulatins & Plicies. Or, lk fr yur state n ) Step 1: Des the state have a net metering plicy and des the net metering plicy apply t yur utility? Des it apply t federal agencies and yur custmer class? Step 2: Des yur prject qualify fr net metering (renewable type and size)? Step 3: Cnsider net metering plicy details such as REC wnership, net excess generatin rules, applicable charges, etc. Step 4: Des the state/utility have meter aggregatin, virtual net metering, and/r cmmunity renewables prgrams? Step 5: Cmpare estimated renewable generatin t electricity lad t determine if net metering is required. If s, estimate net excess generatin at the end f each mnth and the end f the year. Right size the system accrdingly. Step 6: Discuss cntractual requirements and net metering details with utility. Ask abut ther imprtant plicy and intercnnectin issues. 10

11 11 Meter Aggregatin And Virtual Net Metering

12 Meter Aggregatin and Virtual Net Metering Meter aggregatin - a renewable energy prject can ffset the electricity lad f a custmer with multiple meters Example: A slar prject at a federal site ffsets the lads f buildings that are separately metered Virtual net metering/grup billing - multiple custmers receive benefits f a net-metered RE prject, with resulting bill credits allcated acrss the participating custmer bills Examples: 1. Federal campus with multiple agencies that are separately metered and receive benefits frm a grund-munted slar prject n campus 2. Renewable prject at ne agency site benefits anther federal agency site within the same utility service territry 3. Multiple stres in a shpping mall receive benefits frm slar prject n the mall rf 12

13 Meter Aggregatin and Virtual Net Metering Prgrams Meter Aggregatin: Clrad, Delaware, Massachusetts & Califrnia Virtual net metering/grup billing Vermnt: 22 grups in Central Vermnt Public Service and Green Muntain Pwer service territries have frmed t share the utput f a renewable energy system with system sizes ranging frm 1.5 t 199 kw NREL reprt has mre infrmatin Califrnia Meter Aggregatin: 13 Virtual net metering allwed fr multi-tenant prperties Meter aggregatin allwed fr lcal gvernments if all participating accunts receive a time-f-use rate Meter aggregatin may be allwed fr all custmers with multiple meters n parcels f land cntiguus t the lcatin f the renewable energy system (pending CPUC and ther apprvals)

14 14 Distributed Generatin Csts and Benefits

15 Distributed Generatin Cst/Benefits Studies Clean Pwer Research - Net Metering: Quantifying Benefits and Sharing Csts PwerPint that includes ptential alternatives t Net Metering (Value f Slar, Cst f Services) PVAmericaEast-Feb13.pdf Electric Pwer Research Institute (EPRI) - Three-phase initiative t prvide stakehlders with infrmatin and tls that will be integral t fur key areas f cllabratin. This wrk is explred in a cncept paper titled: The Integrated Grid: Realizing the Full Value f Central and Distributed Energy Resurces

16 Distributed Generatin Cst/Benefits Studies Interstate Renewable Energy Cuncil (IREC): A REGULATOR S GUIDEBOOK: Calculating the Benefits and Csts f Distributed Slar Generatin Offers lessns learned frm RMI paper and then prpses a standardized valuatin methdlgy fr PUCs t cnsider implementing in future studies Guidebk-t-Assessing-Benefits-and-Csts-f-DSG.pdf NREL: Regulatry Cnsideratins Assciated with the Expanded Adptin f Distributed Slar A paper intended t help regulatrs understand the ptins and issues assciated with regulatry mdels/rate design alternatives available t address the challenges psed by the transitin tward increased adptin f distributed PV Rcky Muntain Institute (RMI): A Review f Slar PV Benefit & Csts Studies 16 Reviews 16 DPV benefit/cst studies t assess what is knwn and unknwn abut the categrizatin, methdlgical best practices, and gaps arund PV benefits and csts

17 Resurces and Other Infrmatin DSIRE Net Metering Plicies E=0&RE=1 A Guide t Cmmunity Shared Slar: Utility, Private, and Nnprfit Prject Develpment (NREL) Distributed Generatin Intercnnectin Cllabrative (DGIC) 17

18 18

19 Federal Energy Management Prgram Questins? Cntact Infrmatin Chandra Shah Senir Prject Leader