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Net Metering
utility interconnect agreement
Since 1999 Oregon utilities have been required by law to provide net metering for solar, wind, hydro and fuel cells with output of not more than two megawatts of peak power output. (Most home photovoltaic systems are 5,000 watts or less).
This means that when your PV system is generating more electricity than you are using, your electric meter spins backward. At the end of the month you are billed only for net consumption. At the end of a monthly billing cycle, most utilities will either pay you their wholesale rate for any net surplus energy generated or credit your next month’s bill with those surplus kilowatt-hours.
Portland General Electric and Pacific Power use an annual net metering cycle. For areas like western Oregon where one season is significantly sunnier than another, annual net metering allows the customer to be credited with any excess solar electricity generated in the sunny summer months that can be used up in the darker winter months.
Be sure to get a copy of your utility's net metering policy and its interconnection agreement before you purchase your system. It specifies the terms and conditions under which your system will be connected to the utility grid, and includes the technical requirements that ensure safety and power quality.
After your PV system is installed, it must be inspected by both the local permitting agency (usually a building or electrical inspector) and by the electric utility with which you entered into an interconnection agreement.
Links to net metering: