AEPS Alternative Energy Credit Program
| Program Type | Net Metering/Performance-Based Incentive |
|---|---|
| Technologies |
PV, Solar-Thermal Electric, Wind, Landfill Gas, Biomass, Large and Small Hydroelectric, Fuel Cells, Municipal Solid Waste, Combined Heat and Power, and More |
| Amount | Retail rate of utility-provided electricity |
| Required Documentation | Resource Qualification Application and registration |
| Official Web Site | http://paaeps.com/credit/ |
Pennsylvania’s investor-owned utilities (IOUs) must offer net metering to grid-tied systems and reimburse residential and nonresidential customers at retail rates. The rule applies for systems that generate up to 50 kW (residential) and up to 3 MW (nonresidential installations).
Utilities must provide bi-directional meters that measure the flow of electricity in both directions. If an existing meter does not have this capability and the customer agrees, the utility may set up a dual-meter arrangement instead of a bi-directional meter. Net metered homes and buildings are not assessed additional fees and are subject to the same rate structure, retail rates and monthly charges that non-net-metered customers experience.
In addition to reimbursement for excess electricity generation, system owners earn and retain rights to alternative energy credits, unless they agree to assign the credits to another entity or the generator refuses ownership. These credits are obtained each time the system generates 1 MW hour of electricity. Large electricity suppliers must purchase these credits or pay an Alternative Compliance Payment for those credits it did not purchase. The price is determined by the market and has ranged as high $690 per credit, according to the state’s utility commission. The average price paid in 2009 was $260.19.
