The Board of Directors for Valley Electric Association (VEA) introduced an updated net billing program in October 2020, with the aim of facilitating a more equitable and transparent process for solar energy producers within their service area. Under these revised rules, the net billing program is applicable to solar energy systems with a capacity of up to 25 kilowatts (kW). However, owners of larger systems have the opportunity to engage in individual discussions with VEA to establish net billing terms on a case-by-case basis.
In the context of this program, when a solar energy system generates more electricity than is consumed on-site, the excess energy is fed back into the grid. This surplus energy export results in the creation of what is termed as an “Excess Energy Credit.” Notably, the value of this credit is set at 75% of the prevailing retail rate for electricity. The accumulated Excess Energy Credits are then diligently tracked and applied to the customer’s electricity bill at the conclusion of each billing cycle.
Importantly, if the total value of Excess Energy Credits surpasses the cost of electricity consumed by the customer during a given month, the remaining credits will be rolled over and applied to the subsequent monthly bill. It’s crucial to note that any remaining Excess Energy Credits at the end of the calendar year on September 30 will be forfeited, emphasizing the program’s annual cycle.
Additionally, as part of the program’s terms, all Renewable Energy Credits (RECs) generated by the solar energy system are claimed by and become the property of the utility, aligning with VEA’s ownership of the environmental attributes associated with renewable energy production.
In essence, the net billing program introduced by VEA stands as a mechanism to fairly compensate solar energy producers for their contributions to the grid while ensuring that any surplus energy generated is appropriately credited and utilized within the context of the customer’s electricity consumption.
