Net Metering and Interconnection
A public hearing has been scheduled for February 2, 2010 at the BPU Board Hearing Room (Newark, NJ) concerning the rule proposal to remove the 2 MW cap on net metering at N.J.A.C. 14:8-4.3. However, please note that a new law called the Solar Energy Advancement and Fair Competition Act was passed by the legislature (A3520) and signed into law (P.L. 2009, c. 289) on January 17, 2010. This new law establishes new solar requirements and, among other things, removes the 2 MW cap. NJBPU will be convening a stakeholder proceeding to implement the new law. A final draft of the Assembly Bill (A3520) is attached here for reference.
If you would like to submit comments on the rule proposal despite the recent statutory change, you may do so at the public hearing on Tuesday, February 2, or through email or written comments submitted in accordance with the direction in the proposal. Comments may be submitted through March 5, 2010, through either of following methods: electronically, in Microsoft WORD fromat, or in a format that can be easily converted to WORD, by e-mailing them to the following address: rule.comment@bpu.state.nj.us or on paper to Kristi Izzo, Secretary, New Jersey Board of Public Utilities, ATTN: BPU Docket Number EX09110910, Two Gateway Center, Newark, New Jersey 07102.
See Net Metering and Interconnection Standards Working Group Meeting Notice.
Net Metering and Interconnection of Class I Renewable Energy Facilities in New Jersey
New Jersey's Net Metering and Interconnection rules, administered by the New Jersey Board of Public Utilities (NJBPU) and New Jersey's Clean Energy Program, facilitate investments in renewable energy in conjunction with other incentives. The provisions also help customers make the most of their renewable energy investments by offering credits to energy generation at retail rates over an annualized period. The rules enable customer-generators to obtain full retail credit on their utility bill for each kilowatt hour (kWh) of electricity their renewable system produces within a billing period. Should generation exceed consumption, the customer's electric distribution company (EDC) or supplier/provider will credit the customer-generator for the excess. For customers to receive credits, the EDC or supplier/provider will carry over the credit earned from the monthly billing period at retail with any accumulated credit at the end of an annualized period valued at wholesale rates.
Interconnection
Before receiving the benefits of net metering, the NJBPU requires that customer-generators have interconnection agreements in place with their electric distribution companies. These agreements govern connection to the electric grid. The interconnection agreement specifies the terms and conditions, technical requirements, and safety and testing requirements needed.
Applicants for rebates in New Jersey's Clean Energy Program (NJCEP) receive an interconnection form with the rebate reservation confirmation from the NJCEP. Potential customer-generators can also receive a copy of the interconnection form prior to receiving a rebate confirmation by contacting their electric distribution company directly.
Net Metering in New Jersey
Net metering helps customers make the most of their renewable energy investments. It enables customers to obtain full retail credits on their utility bill for each kWh of electricity their renewable system produces, in excess of the amount of electricity used over the course of a year.
When a customer's renewable energy system produces more electricity than the customer actually uses, the customer will be compensated with credits at the full retail value of the electricity for the production over and above what they use.
For example, on a typical sunny day at moderate temperatures, a customer with a solar system may use less electricity than the system actually generates. When electricity production exceeds usage, the utility meter will spin backwards and provide the customer with credits for the excess energy produced. These credits can be used by customers as needed.
With net metering, your electric meter spins forward when electricity flows from the utility into the home, and backwards when power flows from the home to the utility. Your stored kWhs are "netted," or paid back, on an annual basis.
Together, New Jersey's interconnection rules along with the net metering rules ensure that customers with renewable energy systems or generators are compensated for the clean, renewable energy they produce.
Eligibility for Interconnection and Net Metering
All electric utility companies regulated by the NJBPU (PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric) and electric suppliers or providers must offer net metering to retail customers that generate electricity through renewable systems. To be eligible for net metering, the generating capacity of a renewable energy system cannot exceed 2 megawatts (MW) AC and cannot exceed the customer's annual electric needs. The interconnection rules are intended primarily for customer-generators that are eligible to net meter. The rules include three levels of review process dependent upon the size of the generator and other criteria. Generators above 2 MW AC may use the interconnection provisions at the discretion of the electric distribution company.
Benefits and Incentives
New Jersey's Net Metering program has served as a model for other states and continues to lead the industry in streamlining the net metering rules to ensure customers with small, on-site, renewable energy systems (solar, wind, and biopower) can easily connect to the electric grid through their utility companies.
New Jersey's interconnection and net metering rules are designed to motivate ratepayers to invest in renewable energy sources on their properties by ensuring that customer-generators are compensated for the energy they produce. They provide a key incentive for customers to contribute to the availability of safe, reliable, and affordable electricity and help protect our environment in New Jersey. For more information on net metering or interconnection, please call 866-NJSMART.
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Atlantic City Electric Interconnection Standards
Utility Contact Information
 Interconnection Application (under 10 kW) Interconnection Application (under 100 kW) Interconnection Application (over 100 kW) Interconnection StandardsUtility Contact Information
Utility Contact Information
RECO Interconnection Information and Applications Utility Contact Information
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Follow these steps to view the net metering and interconnection rules:
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