Net Metering

Summary

Eligibility and Availability

North Dakota's net metering policy, adopted in 1991 by the state Public Service Commission (PSC), applies to renewable energy systems and combined heat and power (CHP) systems up to 100 kilowatts (kW) in capacity.* Net metering is available to all customers of investor-owned electric utilities; it is not available to customers of municipal utilities or electric cooperatives.

Net Excess Generation

If a customer has net excess generation (NEG) at the end of a monthly billing period, the utility must purchase the NEG at the utility's avoided cost rate.

Aggregate Capacity Limit

There is no specified statewide limit on the aggregate capacity of all net-metered systems. 

REC Ownership

Customers retain ownership of renewable energy credits (RECs) associated with the customer's load, while RECs associated with NEG convey to the utility (with compensation to the customer-generator). 

Utilities may recover metering costs associated with production monitoring from a net-metered system.

* The North Dakota Legislative Council's Committee on Administrative Rules has objected to the PSC's provisions for net metering, asserting that the PSC violated legislative intent by establishing net metering. However, according to the PSC, net metering is currently available to qualifying customers in North Dakota.