OLR Report 2015-R-0264
describes the virtual net metering program, including data on (1) projects that
are currently operational or approved but waiting to proceed, (2) the value of
distributed virtual net metering credits, and (3) the program's cost to
ratepayers.
Traditional
net metering allows a renewable energy system's owner to receive billing credits
for power generated by the system, in effect running the meter
"backwards." If the system
produces more power than the owner used in a billing period, the credits can be
applied to future bills. With virtual
net metering, the system's owner can share these excess credits
"virtually" with other owner-designated accounts, thus running their
meters backwards too.
In
Connecticut, the law limits virtual net metering to municipal, state agency,
and agricultural customers who meet certain requirements (CGS § 16-244u). Among other things, the law specifies (1)
which types of renewable energy systems can participate for each customer type,
(2) generating capacity limits, (3) the types of accounts that can share
virtual net metering credits with the host facility, and (4) that credits are
calculated at the wholesale power generation rate plus a portion of the
electric company's transmission and distribution rates which decreases from 80%
to 40% over three years.
The law
also caps virtual net metering credits at $10 million per year, divided between
the state's electric distribution companies (Eversource and United
Illuminating) in proportion to their respective customers' electrical
load. Within that total, each eligible
customer type (municipal, state agency, and agricultural) is further limited to
40% of the allowed credits.
