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What is Net Metering?

Ever see an electrical term and aren't sure exactly what it means?  It happens to everyone! That's why we're here to help. 

Net metering is a term that is used when discussing solar and other renewable resources. 

 A home solar system (or any electric generation from a renewable resource) is considered a Net-Metering Facility when the solar system is “connected to the grid.” 

Net-metering is the process of measuring the difference between the electricity supplied by AVECC and the electricity fed back onto the grid from a net-metering facility over an applicable billing period. See Ark. Code Ann. § 23-18-603 and the Arkansas Public Service Commission’s Net-Metering rules for full details.

To qualify as a net-metering facility the electrical generation system must:

  1. Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and microturbines that generate electricity if the fuel source is entirely derived from renewable resources.
  2. Operate in parallel with the Cooperative’s existing electric facilities.
  3. Be intended to primarily offset part or all the net-metering customer requirements for electricity.
  4. Have a generation capacity of less than 25 KW (Residential), 1000 KW (Non-residential), or 100% of the net metering customers highest monthly usage in the last twelve months

A net-metering customer is billed on the “net” amount of energy (Kilowatt hours) fed back to the grid or received from the grid. If the excess energy supplied back to the grid exceeds the amount of energy supplied to the home AVECC will credit the excess kilowatt hours to the member’s bill.

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