Net metering allows you to offset some or all of your electricity costs with the electricity you generate from your renewable energy system.
Generating Electricity: During the day when the sun is shining, your solar panels generate electricity. The meter provided by your solar company is measuring the energy produced by your panels. This electricity can be used to power your home’s electrical needs.
Excess Electricity: If your solar panels generate more electricity than you need at any given time, the excess electricity is sent back to the grid.
Net Metering: A bidirectional meter owned by URE measures the electricity you consume from the grid and the excess electricity you send back to the grid. With net metering, the electricity you send back to the grid offsets the electricity you consume from the grid.
Billing: Your utility company bills you based on the net amount of electricity you consume from the grid. If you consume more electricity than you generate, you pay the net amount. If you generate more electricity than you consume, you receive a credit for the excess generation.
Credit for Excess Generation: The credit you receive for excess generation is applied monthly to your electric bills. The rate used to calculate any monthly billing credits for electric energy production of the Member’s electric generating facility above the Member’s electric energy usage in any month shall be Buckeye’s avoided cost rate.
Lets look at some examples:
Solar Energy Frequently Asked Questions:
Why doesn’t my renewables system meter match the usage on my URE monthly bill?
Most often, the usage difference between the generated KWHs indicated on the member’s renewables system meter and the KWHs reflected on the URE monthly bill is the amount of KWHs consumed by the member. Please review the usage examples above.
Why is the rate that I receive for generated KWHs put back into URE’s distribution system less than the rate that I get billed for KWHs consumed?
When a member generates more than they consume in an entire month, the KWHs put back into URE’s distribution system are credited at an “avoided cost rate”. The avoided cost rate is less than the URE residential rate per KWH because URE avoids some of the costs of wholesale generation and transmission from the grid when purchasing energy locally from net metered accounts. We credit that full avoided cost back to those net metered accounts.
The cost of distributing energy across the URE system is still incurred by URE whether the energy is coming from the grid or from a homeowner with a renewables installation, so that “distribution” expense still must be covered by URE. It is not reduced by the member’s renewables system.
Why is the Minimum Distribution Service Charge included in the Net Metering Rate higher than the Minimum Distribution Service Charge included in the Standard Residential Rate?
Every 3-5 years, URE conducts a Cost-of-Service Study (COSS) using an outside consulting firm to analyze our rates for fairness, ability to meet revenue requirements, and to ensure there are no cross-subsidies between rate groups. The COSS yields an estimated residential cost to serve each account. This value includes, but is not limited to, administrative, maintenance, and equipment costs.
URE partially recovers these costs through the Base Charge included in the Distribution Services section of the monthly bill. We anticipate collecting the remaining portion of the estimated cost to serve amount through the KWH Distribution charges, which are for the KWHs consumed by the member in the month. Since renewables systems are designed to significantly reduce or all together eliminate energy consumed from URE, the Net Metering Rate must include a higher Minimum Distribution Service Charge to ensure the adequate recovery of our costs.
It is important to remember that even in those months when a Net Metered account generates more KWHs than they consume, the ready-to-serve URE distribution facilities and the costs associated with them are there too.
What is the status of my renewables project?
We are a resource for your renewables project, and we are here to help. Contact member services at 937-642-1826 or services@ure.com.