Provides for the net energy metering of solar, wind, fuel cell and farm waste electric generating systems; repealer

Summary of provisions

Section 1 of the bill amends 66-j of the public service law to:

Remove the word residential, allowing any customer class to engage in net metering;

Add fuel cells to the list of eligible renewable energy technologies and increase the size of all eligible systems to 2 megawatts for the purpose of net metering;

Clarify that all eligible technologies can be interconnected to the electric grid for the purpose of net metering;

Define net metering as a process that uses a single meter to register the flow of electricity in two directions;

Require electric corporations to develop standard contracts and tariffs providing for net metering; and

Places responsibility for safety standards and interconnection standards with the Public Service Commission, which is where standard interconnection procedures are generally addressed.

Section 2 repeals section 66-1 of the public service law relating to net energy metering for residential and/or farm service wind electric generating systems (with wind electric generating systems covered under section 66-j along with the other eligible technologies).

Section 3 amends subdivision (h) of section 1020-g of the public authorities law by adding wind and fuel cells as eligible technologies for which the Long Island Power Authority must establish programs and policies governing the interconnection standards for the purpose.

Justification

New York has ample renewable energy resources, but has lost its leadership position in the promotion and development of renewable on-site generation. On-site renewable generation provides multiple benefits in the form of clean energy production, economic development, less pollution, reduced stress on the electric grid and increased energy security. In order for New York to realize these benefits, it needs to remove regulatory barriers and establish policies in support of the development of on-site generation. A comprehensive net metering policy is central to the effort of building a robust market for on-site technologies sLlch as solar power, fuel cells, wind energy and methane digesters.

Net metering is a simple, low-cost, easily administered method of encouraging customer investment in distributed renewable energy technologies. Examples of on-site generating systems include solar panels on a warehouse, home or school, a wind turbine at an industrial or municipal facility, an an aerobic methane digester at a dairy farm or a fuel cell at an office building.

Net metering measures the difference between what is produced on-site and the amount of electricity drawn from the electric grid. Most users can not meet their total individual energy demand through on-site generation and continue to receive power from the electric grid through their utility. There are, however, times throughout the year when the system produces more than the user needs at that point in time. For example, a school's solar system will continue generating electricity during the summer when the school is being utilized less frequently. It is on these occasions that excess power is fed back into the electric grid. Therefore, the customer-user's meter turns backwards providing the customer-user with a credit from the utility for this excess energy produced on site.

Currently, New York's net metering law is limited to 10 kW for residential solar systems, 25 kW for residential wind systems, 125 kW for on-farm wind systems and 400 kW for on-farm anaerobic digester systems. The existing law is inadequate and discourages people from investing in on-site, clean energy systems.

This bill is necessary to make investments in on-site renewable energy economically feasible. Net metering is similar to energy efficiency in that it enables the user to use less energy from the electric grid. The utility credit simply helps offset the on-site generator's electric costs and represents a fair exchange for the excess power provided to the utility, since this is power that the utility will sell to another user at the retail rate.

An expanded net metering law in New York would help the State meet its environmental, renewable energy and economic development goals. Net metering ensures that homes and businesses receive a fair return on their investment for the on-site clean energy generation that benefits all of us through reduced air pollutant emissions, decreased stress on the electric grid and in-state economic development.

Legislative history

2007-08: A.9902 Passed Assembly, Delivered to Senate, Referred to Rules 2009-10: A.5785 Referred to Energy

Fiscal implications

None.

Effective date

This act will take effect immediately.