Net metering FAQ
Interested in producing your own electricity? Let us provide you with general information to assist you in making an informed decision.
Note: Ohio’s net metering rules were updated on October 7, 2019. The current net metering rules can be found at http://codes.ohio.gov/oac/4901:1-10-28
If you are an electric utility customer and are interested in generating your own electricity from renewable sources, Ohio law allows you to do so if you meet the following criteria:
- The generating equipment for producing electricity must be intended primarily to offset part or all of your own electricity requirements (up to 120%).
- Acceptable generation include solar, wind, biomass, landfill gas, hydropower, microturbines and fuel cells.
- Such generating equipment must also be located on your own premises; and
- Must be connected in parallel to the electric utility’s system.
What is net metering?
Net metering is a billing arrangement where customers who produce their own electricity can receive a credit on their electric utility bills for any extra electricity produced by the customer that flows back onto the electric utility’s distribution system.
Generating your own electricity may reduce your electric bill in two ways:
- The electricity you produce displaces electricity you would otherwise have purchased from the electric utility (or from a competitive supplier); and
- Your electricity bill is lowered by the amount of electricity your generating system may feed back onto the electric utility’ system.
How does net metering work?
If you want a net metering billing arrangement, your generating equipment must be connected to the local electric utility’s distribution system. Whenever your generating equipment produces more electricity than you need, the extra electricity flows backward through the utility meter on your property making it turn in reverse. This reverse metering may result in a lower monthly meter reading by the electric utility, thus lowering your electric bill.
What if the meter runs backward more than it runs forward?
In that case, the monthly meter reading will be lower than the last meter reading and a credit will be noted on your electric utility bill.
What happens to that credit?
These credits can be used to offset charges in future months and shall continuously carry forward on future bills. Credits can be lost if you do not use them or if you stop taking service from the electric utility.
Under net metering, are all charges subject to the credit?
No. The net metering credit is limited to the energy component of the electric utility's standard service offer. Net metering customers are not credited for distribution or transmission services. If you have a demand (kilowatt) meter these charges also will not be credited.
What if I choose a competitive electric supplier?
You will need to sign a net metering contract with your competitive retail electric supplier.
What if I am served by a rural electric cooperative or a municipal electric utility?
Rural electric cooperatives and municipal electric utilities are not required to offer net metering, but some may do so. Contact your rural coop or municipal utility to find out what they offer.
How do I get started?
Contact your local electric utility to discuss your electricity usage to determine your electricity requirements and to request an application form for interconnection service for your proposed generating equipment. You must complete an interconnection application form for your electric utility to review and approve before you attempt to connect to their system.
The interconnection review process varies based on the amount of electricity you intend to produce and the location of your equipment on the electric utility’s system. Currently, there is a “simplified” and a “standard” review process.
More information on the interconnection process can be found on the PUCO's Distributed generation: generating your own electricity page.