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Pennsylvania Net-Metering Rules

Date Last Updated8/13/2014
Policy TypeNet-Metering Policy
Policy Administrator/Contact OfficePennsylvania Public Utilities Commission (PUC)
Policy Initiation Date6/22/2006
Policy SummaryHB 1203 required the Pennsylvania PUC to develop technical and net-metering interconnection rules that apply to customer-generators intending to operate onsite generators in parallel with the electric utility grid. EDCs shall offer net-metering to customer-generators that generate electricity on the customer-generator's side of the meter using Tier I or Tier II alternative energy sources, on a first come, first served basis. On June 22, 2006, the PA PUC adopted net-metering rules for such sources and that include CHP, fuel cells, biomass energy, and other forms of distributed generation. The net-metering rules require all investor-owned utilities to offer net-metering to residential customers with systems up to 50 kW, non-residential customers with systems up to 3 MW and customers with micro-grids and emergency systems up to 5 MW.

Net-metering is achieved using a single, bi-directional meter that can measure and record the flow of electricity in both directions at the same rate. Net excess generation (NEG) is carried forward and credited to the customer's next bill at the full retail rate. Customer-generators are compensated for remaining NEG at the utility's "price-to-compare" at the end of the year. Customers own all renewable energy credits.

Meter aggregation is allowed on properties owned or leased by the customer. Aggregation is limited to meters (in a single utility's service territory) that are located on properties within two miles of the boundaries of the customer's property. The utility must provide the necessary equipment for physical meter aggregation, but the customer must pay the costs.
CHP Eligibility RequirementsBoth fossil-fueled and renewably-fueled CHP systems are eligible for net-metering.
Eligible Project Size (MW)Residential systems up to 50 kW, non-residential systems up to 3 MW and micro-grid systems up to 5 MW are eligible to net-meter.
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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