Relates to net metering

4 Co-sponsors

• Andrew J. Lanza
• Kevin S. Parker
• John L. Sampson
• Diane J. Savino

BILL NUMBER:S5150A

Title of bill

An act to amend the public service law, in relation to net metering

Purpose

The purpose of this bill is to facilitate the development of large scale photovoltaic installations through net metering in cities of a million or more.

Summary of provisions

Section 1 of the bill amends subparagraph (iii) of paragraph (a) of subdivision 1 of section 66-j of the Public Service Law.

Section 2 of the bill amends paragraph (d) of subdivision 1 of section 66-j of the Public Service Law.

Section 4 of the bill amends paragraph (e) of subdivision 3 of section 66-j of the Public Service Law.

Justification

In 1997, New York State began to allow customers to utilize net metering to promote the installation of renewable energy while reducing their utility bills. Net metering is a straightforward method of encouraging customer investment in renewable energy. Net metering allows the owner of an on-site renewable energy system to receive a credit on his or her utility bill for any unused power supplied to the electric grid by the system. "Net", in this context, is used in the sense of meaning "what remains after deductions," in this case, the deduction of any energy outflows from metered energy inflows. Under net metering, a system owner receives retail credit for at least a portion of the electricity they generate. The credit then offsets the power received from the grid when the customer consumes more energy than the system is generating. In addition to acting as a hedge against rising energy costs and reducing overall stress on the electric grid, on-site renewable energy systems provide numerous environmental, public health, and economic development benefits to local communities.

This bill proposes a dramatic increase of allowable kilowatts for a net metered project, the largest increase to date. By increasing the cap for cities of one million or more, we would be expanding the universe of people who can easily access net metering and thereby expanding renewable energy generation, reducing emissions and decreasing consumer's utility bills. The use of a third-party arrangement as proposed here would allow the transfer of net metering credits to a customer that owns or leases the property where the solar cells are to be located, and that otherwise has electricity demand in the applicable load zone

within the service territory. Such an arrangement would remain consistent with the overall goal of the net metering statute, while introducing a much-needed degree of flexibility to address the market realities necessary to facilitate the siting of larger-scale projects in an urban environment. If enacted, the proposed amendment is likely to markedly increase the amount of renewable power that can be generated in cities of one million or more, thus reducing the need for inefficient peak load generation from fossil fuel sources, avoiding or deferring the need for costly utility infrastructure investments, and enhancing air quality.

Legislative history

This is a new bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.