Net Metering

In May 2009, Nebraska enacted L.B. 436, which established statewide interconnection and net metering rules for all electric utilities in Nebraska.

Eligibility and Availability

Utilities are required to provide interconnection and net metering for a customer-generator’s “qualified facility,” which generates electricity from an energy source of solar, methane, wind, biomass, hydropower, or geothermal and has a rated capacity at or below 25 kilowatts (kW). Utilities are required to offer net metering until the aggregate generating capacity of all customer-generators equals 1% of the utility’s average aggregate monthly peak demand for that year. Upon reaching the 1% threshold, a utility can choose whether to offer more net metering capacity. A utility may enter into other arrangements with customers desiring to install electric generating equipment and may also provide net metering to customer-generators having renewable generation units with a rated capacity above 25 kW.

For example, Lincoln Electric Systems (LES) allows owners of qualifying facilities that have a production capacity limit of 100 kW or less to either sell the entire electrical output of qualifying facilities to LES or use the electrical output of qualifying facilities to instantaneously supply all or a portion of their own load and sell the instantaneous surplus, if any, to LES.

Customer-generators retain all renewable energy credits (RECs) associated with the electricity their system generates.

Net Excess Generation

Any net excess generation (NEG) produced by the qualifying facility during the month will be credited at the utility’s avoided cost rate for that month and carried forward to the next billing period. Any credited NEG remaining at the end of an annualized period will be paid out to the customer-generator.

Consumer may be billed for the non-energy charges (including but not limited to the basic service, demand, and minimum billing charges) as set forth in the applicable standard rate schedule.

Resources

More information on utility net metering policies can be found at the following websites:

• Lincoln Electric Systems – Customer-Owned Generation
• Nebraska Public Power District – Net Metering Rider
• Omaha Public Power District – Net Metering

For utilities not listed here, please contact them directly for specific policies and procedures.