Net Metering and Interconnection of Class I Renewable Energy Facilities in New Jersey

New Jersey's Net Metering and Interconnection rules, administered by the New Jersey Board of Public Utilities (NJBPU), facilitate investments in renewable energy. The provisions help customers maximize their renewable energy investments by offering credits to energy generation at retail rates over an annualized period. The rules enable customer-generators to obtain full retail credit on their utility bill for each kilowatt hour (kWh) of electricity their renewable system produces within a billing period. Should generation exceed consumption, the customer's electric distribution company (EDC) or supplier/provider will credit the customer-generator for the excess.  For customers to receive credits, the EDC or supplier/provider will carry over the credit earned from the monthly billing period at retail with any accumulated credit at the end of an annualized period valued at wholesale rates.

Recently, a Request for Comments was issued to solicit comments on a net metering amendment for multiple properties.  Several parties submitted comments.

Interconnection

The NJBPU requires that customer-generators have interconnection agreements in place with their EDCs. These agreements govern connection to the electric grid and specify the terms and conditions, technical requirements, and safety and testing requirements needed.  Utility contact information and utility specific website pages with forms are available (links directly to the utility Interconnection forms page) for each of the NJ BPU regulated electric utilities.

NJ certification numbers will not be issued until the NJCEP receives a copy of the EDC Notification. For behind-the-meter solar energy systems, this document is the Electric Distribution Company (EDC) or Municipal Electric Utility (MEU) authorization to energize the system. For merchant power generators, this document is PJM or EDC authorization to energize the system.

If you are experiencing a delay in receiving a response from your EDC and wish submit a specific complaint regarding the interconnection of your project, please visit the Interconnection Complaint page.

The EDCs will require at the time of interconnection the existence of sufficient load to justify the capacity installed.

Net Metering in New Jersey

Net metering helps customers maixmize their renewable energy investments.  It enables customers to obtain full retail credits on their utility bill for each kWh of electricity their system produces, in excess of the amount of electricity used over the course of a year.

When a renewable energy system produces more electricity than the customer actually uses, the customer will be compensated with credits at the full retail value of the electricity for the production over and above what they use.  For example, on a typical sunny day at moderate temperatures, a customer with a solar system may use less electricity than the system actually generates. When electricity production exceeds usage, the utility meter will spin backwards and provide the customer with credits for the excess energy produced. These credits can be used by customers as needed.

With net metering, your electric meter spins forward when electricity flows from the utility into the home, and backwards when power flows from the home to the utility.  Your stored kWhs are "netted," or paid back, on an annual basis.

Together, New Jersey's interconnection rules along with the net metering rules ensure that customers with renewable energy systems or generators are compensated for the clean, renewable energy they produce.

Eligibility for Interconnection and Net Metering

All electric utility companies regulated by the NJBPU (PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric) and electric suppliers or providers must offer net metering to retail customers that generate electricity through renewable systems. To be eligible for net metering, the generating capacity of a system cannot exceed the customer's annual electric needs. The interconnection rules are intended primarily for customer-generators that are eligible to net meter. The rules include three levels of review process dependent upon the size of the generator and other criteria.

Benefits

New Jersey's Net Metering program has served as a model for other states and continues to lead the industry in streamlining the net metering rules to ensure customers with small, on-site, renewable energy systems (solar, wind, and biopower) can easily connect to the electric grid through their utility companies.

The interconnection and net metering rules are designed to motivate customers to invest in renewable energy sources on their properties by ensuring that customer-generators are compensated for the energy they produce. They provide a key incentive for customers to contribute to the availability of safe, reliable, and affordable electricity and help protect our environment in New Jersey. 

Net Metering and Interconnection Petitions and Reports

• Redskye Farms Report - Final
• NJLand
• Jed Horovitz

Utility Interconnection Forms