Net metering is a type of billing arrangement between a solar customer and the electric utility company. It allows customers to generate their own electricity and send excess energy to the grid. In return, customers receive monetary credits on their electric bills, which can then be used to offset the electricity they draw from the grid when they need it.
Below, we explain how net metering works in New Hampshire and explore its benefits.
How Net Metering Works in New Hampshire
Eligibility
Customers of Eversource, Liberty Utilities, New Hampshire Electric Cooperative, and Unitil can participate in net metering. Additionally, some municipally owned and operated electric utilities may also offer net metering programs.
System Size
There are two categories of customers that can partake in net metering in New Hampshire: small customer-generators, and large customer-generators. Small customer-generators are residential properties and small commercial businesses, with systems that have a generating capacity of no more than 100 kW AC. Large customer-generators are large facilities, like commercial businesses, can install systems with a capacity of up to 1,000 kW. Systems exceeding 1,000 kW do not qualify for net metering. Solar equipment must be located behind the customer’s meter, interconnected to the electric grid, and used to offset on-site electricity consumption.
Rates
The rate at which the electric utility credits customers for their excess depends on the size of the solar system. Small customer-generators get paid for the supply, the transmission, and 25% of distribution. The result is approximately 75% of the full retail rate. For example, if the electric utility charges 20 cents per kWh, they would pay the customer 15 cents per kWh for any excess energy. It should be mentioned that large customer-generators get paid for only the supply charge when they net meter.
The rate structures mentioned above help determine how much customers are compensated for the clean energy they supply to the grid. Per the New Hampshire Public Utilities Commission, the current net metering tariff rates are set to remain in place until 2040.
Benefits of Net Metering
1. Savings: It’s because of net metering that solar customers are able reduce, or eliminate, their monthly electric utility costs. It’s important to look at net metering on a seasonal basis. During the spring and summer, the days are longer and there is plenty of sunshine. It’s during this time of the year when solar systems produce excess amounts of electricity. The excess energy is applied as monetary credits to the customer’s electric bill. Those monetary credits are then carried over to the fall and winter months when the days are shorter and it’s generally less sunny.
A good analogy is how people heat their homes with firewood. They cut, split, stack, and let the firewood dry and cure during the spring and summer, to then use it during the fall and winter to heat their home. Think of that stored wood as your net metering credits – except with net metering there is no intensive labor needed to build up those monetary credits – you let the sun do the work!
2. Grid Efficiency: On a broader scale, net metering and behind the meter solar consumption reduces energy demand on the grid. This benefits utilities as they don’t need to supply as much energy to the grid during times of peak demand, which leads to lower energy costs for everyone.
3. Environmental Impact: Switching to solar reduces reliance on fossil fuels, lowering an individual’s carbon footprint. Net metering promotes the deployment of solar energy to the grid, thus decreasing the production and consumption of “dirty” energy. This collective effort helps power entire communities with cleaner, more sustainable energy.
Conclusion
By adopting solar and participating in net metering, New Hampshire residents and businesses not only save money but also help reduce emissions that harm the environment. Ready to reap the benefits of solar and net metering? Get in touch with the Granite State Solar team today to learn more.
