Net Billing

February 22, 2023

Summary

Eligibility and Availability

Utah’s net metering policy, adopted in 2002, applies to all electric investor-owned utilities and electric cooperatives. Systems up to 25 kW in capacity for residential and up to 2 MW for non-residential that generate electricity using solar, wind, hydrogen, organic waste, hydroelectric, waste gas and waste heat capture/recovery, certain biomass and woody debris, agricultural residues, dedicated energy crops, landfill or biogas, or geothermal are eligible. Enrollment is limited to 0.1% of the corporation’s peak demand during 2007 (this limit may be increased by the corporation’s governing authority). 

Net Excess Generation

Net excess generation (NEG) is credited to the customer’s next monthly bill at the least avoided cost rate (or another rate as determined by the corporation’s governing authority). At the end of an annualized billing period any unused credits will be granted to the corporation with no compensation to the customer and may be used for the corporation’s low-income assistance programs.

Meter Aggregation

If a customer generator has multiple meters at one location or an adjacent location, the meters may be aggregated for billing purposes. The customer must notify the utility of the order in which they want the kWh credits to be applied to the meters. 

Municipalities

While not required by law, several of Utah’s municipalities have voluntarily developed their own net metering programs, this includes the City of St. George and Murray City Power.

Rocky Mountain Power

PacifiCorp (dba Rocky Mountain Power) is the only investor-owned utility in the state. Its net metering program has several unique features including that NEG is credited at an export credit rate instead of the least cost rate and that batteries are included in the list of eligible renewable generating facilities.  

In September 2017 the Public Service Commission of Utah (PSC) approved a settlement stipulation between Rocky Mountain Power, regulatory and state agencies, and other intervenors that: 1) capped the generating capacity of net metering customer generation systems at the cumulative generating capacity of those systems for which interconnection applications were submitted by November 15, 2017 and established a grandfathering period for the net metering program customers through 12/31/2035; 2) established a “Transition Program” for customer generators who submit interconnection applications after November 15, 2017 until the date an aggregate capacity limit is reached or the PSC issues a final order in an Export Credit Proceeding. The Transition Programs runs from the November 15, 2017 until December 31, 2032; and 3) permitted PacifiCorp to file an application to initiate the Export Credit Proceeding to determine the compensation rate for exported power from customer generation systems, This rate will apply to new customer-generation customers and net metering program and transition program customers after the expiration dates of those programs. 

Net metering customers take service under Electric Service Schedule 135, Net Metering Service - closed to new applicants. 

Transition Program Customers take service under Electric Service Schedule No. 136, Transition Program for Customer Generators - closed to new applicants as of October 31, 2020.

New applicants will take service under Electric Service Schedule No. 137, Net Billing Service, approved as part of the Export Credit Proceeding.

Exported Customer-Generated Energy Credit Rates:

Billing Months: June - September inclusive

5.160 cents/kWh for all exported kWh

Billing Months: October - May inclusive

4.462 cents/kWh for all exported kWh


Program Overview

Implementing Sector: State
Category: Regulatory Policy
State: Utah
Incentive Type: Net Metering
Web Site: https://adminrules.utah.gov/public/rule/R746-312/Current%20Rules?searchText=net%20metering
Administrator:
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Hydrogen
  • Municipal Solid Waste
  • Combined Heat & Power
  • Landfill Gas
  • Wind (Small)
  • Hydroelectric (Small)
  • Anaerobic Digestion
  • Lithium-ion
Applicable Utilities: Investor-owned utilities, municipal utilities, and electric cooperatives
System Capacity Limit: Rocky Mountain Power: 2 MW for non-residential; 25 kW for residential

Municipal utilities and electric cooperatives set their own limits
Aggregate Capacity Limit: Legislative Cap: 0.1% of the electrical corporation's peak demand during 2007

Rocky Mountain Power: no cap in place for Schedule 137

Municipal utilities and electric cooperatives may use the legislative cap or set their own cap as provided in the statute
Net Excess Generation: Legislative Rule: carried to customer's next bill at avoided cost rate (or other approved). At end of annualized billing cycle, excess credits are granted to the corporation with no customer compensation.

Rocky Mountain Power: credits may be used to offset customer's bill but are never refunded to them. Unused credits expire at the end of the annualized billing period and are credited to the low-income program.

Municipal utilities and electric cooperatives set their own policies
Ownership of Renewable Energy Credits: Rocky Mountain Power: customers retain ownership of renewable energy attributes unless specific contracts terms are negotiated for other arrangements.

Municipal utilities and cooperative utilities set their own policies.
Meter Aggregation: Rocky Mountain Power: allowed at same or adjacent locations.

Municipal utilities and cooperative utilities set their own policies.

Authorities

Name: Utah Code § 54-15-101 et seq.

Contact

Name: Public Service Commission
Address: 160 East 300 South, 4th Floor
Salt Lake City UT 84111
Phone: (801) 530-6716
Email: psc@utah.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.