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Net Metering
Please take a look at our frequently asked questions
regarding Net Metering.
What is Net Metering and How Does It Work?
Through New York State’s Net Metering Law and LIPA’s Tariff
for Electric Service, residential customers
with PV systems 10 kW or less are entitled to net metering.
At times, a net metered customer’s PV system may generate
more electric energy than their consumption. When this
occurs, the electric meter will spin in reverse. The excess
electricity is returned to the LIPA system. At the end of
each month, the net metered customer is billed only for the
net consumption, that is, the amount of electricity
consumed, less the amount of electricity produced. This is
called “net metering.” Your meter is currently spinning in
the "Consumption" mode. To spin your meter backwards due to
PV, we need to reverse the dials direction to simulate a
reversing meter. Back to top
Why is net metering important?
There are three reasons net metering is important. First, as
increasing numbers of primarily residential customers
install renewable energy systems in their homes, there needs
to be a simple, standardized protocol for connecting their
systems into the electricity grid that ensures safety and
power quality. Second, many residential customers are not at
home using electricity during the day when their systems are
producing power, and net metering allows them to receive
full value for the electricity they produce without
installing expensive battery storage systems. Third, net
metering provides a simple, inexpensive, and
easily-administered mechanism for encouraging the use of
renewable energy systems, which provide important local,
national, and global benefits.
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What are the benefits and costs of net metering?
Consumers benefit by getting greater value for some of the
electricity they generate, by being able to interconnect with the
utility using their existing utility meter, and by being able to
interconnect using widely-accepted technical standards.
The only cost associated with net metering is indirect: the
customer is buying less electricity from the utility, which means
the utility is collecting less revenue from the customer. That's
because any excess electricity that would have been sold to the
utility at the wholesale or 'avoided cost' price is instead being
used to offset electricity the customer would have purchased at the
retail price. In most cases, the revenue loss is comparable to
having the customer reducing electricity use by investing in energy
efficiency measures, such as compact fluorescent lights and
efficient appliances. Back to top
Can I use my existing meter to take advantage
of net metering?
The standard kilowatt-hour meter used for residential customers will
be replaced with a "net meter", which accurately registers the flow
of electricity in either direction. This means the 'netting' process
associated with net metering happens automatically-the meter spins
forward (in the normal direction) when the consumer needs more
electricity than is being produced, and spins backward when the
consumer is producing more electricity than is needed in the house
or building. Back to top
How can I be sure that these small-scale PV systems
are safe?
During the last decade there has been tremendous technological
progress in the design of the equipment that integrates small-scale
generators with the utility grid. Called 'inverters' because they
were originally designed only to 'invert' the DC electricity
produced by solar arrays to the AC electricity used in our homes and
businesses, these devices have evolved into extremely sophisticated
power management systems. Inverters now include all the necessary
protective relays and circuit breakers needed to synchronize safely
and reliably with the utility grid.
Back to top What LIPA and State
Incentives are available to help minimize the cost of purchasing
a PV System?
LIPA’s Solar Pioneer Program, combined with tax incentives
currently available from New York State, makes this a great time
to consider solar power for your home. LIPA offers direct
incentives that significantly reduce the cost of utility
interconnected photovoltaic (PV) systems sized up to 10
kilowatts (KW). Residential customers may also pursue a New York
State tax credit of up to $5,000 In addition, homeowners may
take advantage of New York States 15-year property tax exemption
for Solar Energy Systems (check with your municipality to see if
you are eligible). Back to top
As a Net Metered Customer, How Will LIPA Bill
Me?
Net metered customers are billed on a monthly basis. BALANCED
BILLING customers who become net metered customers will be
removed from BALANCED BILLING and billed on a monthly basis
based upon their energy consumption.
All net sales transactions are based on a “contract year,”
which typically begins with the date the net meter is installed
by LIPA. During the contract year, LIPA’s retail energy rates
are applied to the net energy or kilowatt hours that are
consumed from LIPA each month. For LIPA’s residential rate codes
(not including Time Of Use) the rates range from approximately
17.64 cents per kWh to 19.52 cents per kWh and includes the Fuel
Purchased Power Cost Adjustment (FPPCA) rate. These rates will
vary based upon the season and the amount of energy consumed
from LIPA. Back to top What If My PV System
Generates More Energy Than What I Consume From LIPA?
During the month, if a net metered customer generates more
energy from their PV system than is consumed from LIPA, the
customer is billed for the daily service charge only (line and
meter charge) and the excess generation in kilowatt hours
(credits) is placed in an “energy bank”. Energy from the bank
can be withdrawn in subsequent months to reduce the net metered
customer's billed consumption during the contract year.
Annually, on the net metered customer's anniversary date,
LIPA will reconcile the energy bank. The total monetary value of
the energy bank is calculated to combine the monetary values for
each month during the contract year at the rates specified in
LIPA’s SC-11 buyback or wholesale avoided cost rate, which range
from approximately 9.60 cents per kWh to 11.58 cents per kWh and
includes the Fuel Purchased Power cost Adjustment (FPPCA) rate.
This rate will vary upon each season. This total amount of money
will be credited to the net metered customer and the customer's
energy bank (in kilowatt hours and dollars) reset to zero and
the end of the contract year. Back to top
What If My PV System Produced More Energy Than What I Consumed
From LIPA At The End Of The Contract Year?
At the end of the contract year, in the event that the
cumulative dollar value is positive (your PV system produced
more energy than you consumed from LIPA) end of year
reconciliation dollars will be applied as a credit to your LIPA
customer account and the energy bank reset to zero.
Back to top
What If I Consume More From LIPA Than What My
PV System Produces At The End Of The Contract Year?
In the event that the cumulative dollar value is negative at the
end of the contract year, (you consumed more from LIPA than your
PV system produced) you will be billed that amount by LIPA at
the retail rate and the energy bank reset to zero.
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Net Metering for Time-of-Use Customers
As a LIPA Time-of-Use customer, in order to net meter, LIPA
requires that you have a second, non-time-differentiated meter
wired to your service. Both meters will only be able to record
electrical consumption in one direction. The LIPA revenue Time
of Use meter will record only the energy provided by LIPA and
will be identified as the “sell meter.” The “sell” meter will be
programmed to record LIPA energy you consume utilizing the
appropriate Time-of-Use rate structure. The second meter will be
identified as the “buy meter”. This meter records the amount of
kWh energy that you have generated and are selling back to LIPA.
According to LIPA’s billing tariff for residential small
solar electric generators (PV systems) who are served under a
residential Time of Use Service Classification, LIPA will
combine the purchases and sales recorded on the two meters by
first offsetting purchases from LIPA during the peak period by
the amount sold to LIPA in a given billing period. Any
additional energy supplied from the PV system will then be used
to offset the off peak period within the same billing period.
After satisfying the current billing period, any remaining kWh
energy will be carried over to the next billing period and will
be used to offset LIPA energy rates. All net sales transactions
are based on a “contract year,” which begins with the date the
second “buy” meter is installed by LIPA. At the end of the
contract year, LIPA will adjust any remaining energy credits at
LIPA’s SC-11 Buyback or wholesale avoided cost rate, which range
from approximately 9.60 cents per kWh to 11.58 cents per kWh and
includes the Fuel Purchased Power cost Adjustment (FPPCA) rate.
This rate will vary upon each season.. The total amount of money
will be credited to the Time of Use net metered customer account
and the customer's account reset to zero at the end of the
contract year.
If you install a second meter, you will be responsible for
the installation costs of the second meter, which include the
cost of the meter pan, meter mounting devices and all necessary
equipment and wiring. You can avoid the installation and cost of
a second meter by choosing to be on a non-Time-of-Use rate
(standard electric rate). You must notify LIPA and request the
change in rate classification, in writing, at least thirty (30)
days before your Time of Use anniversary date. The transfer will
take place on the Time of Use anniversary date.
Please note: LIPA will verify the metering and billing of a
LIPA net metered account, but recommends that net metered
customers contact their PV contractor if their PV system is not
performing as expected. Back to
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