Distributed Generation
| Program Type | Net Metering |
|---|---|
| Technologies | Photovoltaics, Wind |
| Amount | The distributed generation rule applies to residential systems up to 25 kW in size |
| Required Documentation | Interconnection agreement and application filed with customer’s utility |
| Official Web Site | http://www3.dps.state.ny.us/W/PSCWeb.nsf/All/DCF68EFCA391AD6085257687006F396B?OpenDocument |
New York’s investor-owned utilities must offer net metering on a first-come, first-served basis to residents that install a photovoltaic (PV) or other renewable generation system that is up to 25 kW in size (farms and businesses may net meter systems up to 2 megawatts in size). Publicly held utilities do not have to offer net metering, but some, like the Long Island Power Authority, offer net metering similar to that offered by Investor-owned utilities. Utilities will continue to sign net metered PV systems until net-metered PV, biogas systems, micro-combined heat and power, and fuel cell systems together make up one percent of their 2005 energy demand. Utilities may choose to allow a higher percentage of net-metered systems into their energy mix if they want to.
In most net-metered systems, net excess generation in a month is credited toward the customer/generator’s next monthly bill at the utility’s retail rate. At the end of the year, customers that produced more energy than they used are reimbursed at the utility’s avoided cost rate.
The owner also will install a protective device that will unhook the system from the grid if the utility’s generators fail.

