Net Metering is a rate that promotes renewable resource development by providing customers who generate some or all of their electricity using renewable resources credits and offsets that exceed utility cost savings for the power they generate.
The most common resources used by residential customers are: wind and direct solar.
Generation Size Limitations
In addition to staying within the program limitations your customer generation may not exceed the size required to generate your annual needs.
Annual needs are established based upon one of three methods:
- If historical data is not available the customer and Detroit Edison will mutually agree upon the customer’s energy needs.
- Customer’s energy needs are set at the previous 12 months of actual energy usage in kWh for customers without a demand component in their rates. (Typically residential and small commercial customers).
- If 12 months metered demand in kW data are available (typically large commercial and industrial customers) the size of a qualifying unit is limited to the smaller of the program generator size limit or the maximum site demand in a 12 month period.
Customers with an aggregated capacity of 20 kW or less fall into Category 1. Nearly all of the residential net metering projects are expected to fall into this category. Although some commercial and industrial projects may fall into this category. If you are contemplating installing more than 20kW of capacity please see the information provided in the Business Customer Generation Web site.
The total capacity that can be installed for category 1 is limited to 0.005 (0.5%) of the Company’s system peak for the previous year.
The company will meter in-flow and out-flow independently for Category 1 customers. The company will use a single device when practical called a bi-directional meter to record inflow and outflow. Detroit Edison will provide any meters required to record inflow and outflow at the site at no charge to the customer. However the customer is responsible for the cost of installing any meter enclosures required. A generator meter is optional but may be useful for customers interested in selling Renewable Energy Credits associated with the generation. The cost for the meter, if chosen, would be the responsibility of the customer.