Selling Power Back to the Utility

Net Metering

Note: the Green Communities Act has significantly changed net metering.  See this excerpt on net metering (section 78 beginning on line 2057). 

The DPU has initiated a process (D.P.U. 08-75) to develop regulations to implement the new net metering provisions: enter 08-75 at the DPU Enhanced Fileroom.

All distributed generation projects with capacity of 60 kW or less and interconnected to the local utility are eligible for net metering, or sale of electricity back to the utility. In addition, solar and wind projects up to 2 MW in size will be eligible for a range of net metering arrangements.

A separate application for net metering is required in addition to an interconnection application.

Subject to future changes pursuant to the Green Communities Act, the availability of net metering is required through the Code of Massachusetts Regulations, CMR 220 11.04 7(c) as follows:

"A Customer of a Distribution Company with an on-site Generation Facility of 60 kilowatts or less in size has the option to run the meter backward and may choose to receive a credit from the Distribution Company equal to the average monthly market price of generation per kilowatthour, as determined by the Department, in any month during which there was a positive net difference between kilowatthours generated and consumed. Such credit shall appear on the following month's bill. Distribution Companies shall be prohibited from imposing special fees on net metering Customers, such as backup charges and demand charges, or additional controls, or liability insurance, as long as the Generation Facility meets the Interconnection Standards and all relevant safety and power quality standards. Net metering customers must still pay the minimum charge for Distribution Service (as shown in an appropriate rate schedule on file with the Department) and all other charges for each net kilowatthour delivered by the Distribution Company in each billing period." Source: CMR 220 11, pages 13-14

Each customer should review net metering options with the local utility.

Power Purchase Agreements

Some facilities may be eligible to establish power purchase agreements with the local utility. One way to do so at present is by following the qualifying facility (QF) process at the federal level. Under QF regulations, once a facility is certified as a QF the utility is required to purchase power from the facility. Each QF must work with the utility to establish a power purchase agreement. More on QF requirements and power purchase options is available here.

Note: these issues are also addressed in the DOER Renewable Energy and
Distributed Generation Guidebook.