Net Metering of Electricity

On March 15, 2002, Governor Leavitt signed into law House Bill 7, Net Metering of Electricity. This law requires all electric utilities and cooperatives in Utah (municipal utilities are excluded) to allow customers to connect renewable energy systems to the grid for their own use and to supply excess electricity to the electric grid.

The utility will "net" the customers electricity use and production over the monthly billing period, in essence, paying the customer retail price for the electricity they produce.

If net metering results in excess customer-generated electricity over the billing period, the utility will credit the customer for the electricity at a value that is at least avoided cost. The customer may use the credit to offset purchases of electricity during future billing periods in the same year. Any unused credits expire at the end of the calendar year. Customer generated electricity may be from solar, wind, small hydropower, or fuel cell systems of up to 25 kW in size.

The net metering law caps total participation in the program at 0.1% of the cumulative generating capacity of the utility's peak demand during 2001. Utilities are prohibited from imposing additional charges or fees on customers with net metering unless authorized by the Commission.

Dept of Natural Resources Dept of Natural Resources