26 Del. Admin. Code § 3012-2.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 3012-2.0 - Net Metering General Provisions

2.1 Net Metering Conditions

2.1.1 Net metering can occur in the following circumstances:

2.1.1.1 Condition 1 - Individual customer/single account/single premise where all net metering activity occurs at a single customer premise for a single customer account; and

2.1.1.2 Condition 2 - Individual customer/multiple accounts/single or multiple premises where a single customer can aggregate net metering for crediting to multiple accounts or premises.

2.1.2 Rules governing community energy facilities can be found in 26 DE Admin. Code 3013.

2.2 Each electric supplier providing electric supply service shall offer customers the option of net metering if a customer generates electricity at the customer's premises, subject to all of the following requirements:

2.2.1 The customer owns and operates; leases and operates; or contracts with a third party who owns and operates the electric generation facility with a capacity that:

2.2.1.1 Will not exceed 25 kW per DP&L meter for residential customers;

2.2.1.2 Will not exceed 2 MW per DP&L meter for non residential customers;

2.2.1.3 Will not exceed 100 kW per DP&L meter for farm customers, as those customers are described in 3 Del.C. § 902(3); provided, however, that DNREC may grant exceptions to this limitation in accordance with 26 Del.C. § 1014(d)(1)b;

2.2.1.4 For Condition 2, the sum of electric generation capacity will not exceed the applicable limits per meter specified in subsections 2.2.1.1 through 2.2.1.3;

2.2.2 Uses as its primary source of fuel: solar, wind, hydro, a fuel cell, or gas from the anaerobic digestion of organic material;

2.2.3 Is interconnected and operated in parallel with an electric supplier's transmission and distribution facilities; and

2.2.4 Is designed to produce no more than 110% of the host customer's expected aggregate electrical consumption, calculated on the average of the 2 previous 12-month periods of actual electrical usage at the time of installation of energy generating equipment and subject to the capacity limits specified in subsections 2.2.1.1 through 2.2.1.3 of 26 DE Admin. Code 3012. For new building construction or in instances where less than 2 previous 12-month periods of actual usage is available, electrical consumption will be estimated at 110% of the consumption of units of similar size and characteristics at the time of installation of energy generating equipment and subject to the capacity limits specified in subsections 2.2.1.1 through 2.2.1.3 of 26 DE Admin. Code 3012.

2.3 Net metering shall be accomplished through a single meter that measures net energy flow during a billing period.

2.3.1 To maintain system safety and reliability, an additional meter or meters to monitor the flow of electricity in each direction may be installed with the consent of the customer, which consent may be waived by the customer. The additional metering shall be used only to provide the information necessary to accurately bill or credit the customer pursuant to subsection 2.4, or to collect system performance information.

2.3.2 If an additional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter.

2.3.3 Non-residential customers shall be responsible for paying the reasonable cost of any new, replacement, or modified meter or meters installed for net-metering purposes. Residential customers shall not be responsible for paying more than $200.00 toward the reasonable cost of any new, replacement, or modified meter or meters installed for net-metering purposes. Non-residential and residential customers shall not own the meter or meters, which shall remain the property of the electric distribution company.

2.4 Electric suppliers and EDCs shall credit excess kWh credits to the customer's subsequent monthly billing periods to offset the customer's consumption in those billing periods.

2.4.1 Excess kWh credits shall be credited to subsequent billing periods to offset a customer's consumption in those billing periods until all credits are used. During any subsequent billing period prior to the end of the annualized billing period, the crediting of excess energy kWh will result in the reduction of cost paid by the customer for the equivalent volumetric energy kWh of delivery service charges, if applicable, and supply service charges.

2.4.2 At the end of the annualized billing period, a customer may request a payment from the electric supplier for any excess kWh credits. The payment for residential customer accounts shall be calculated by multiplying the excess kWh credits by the customer's supply service charges based on a weighted average of the first block of the summer (June through September) and winter supply service charges (October through May) in effect at the end of the customer's annualized billing period and the preceding 11 billing periods, excluding non-volumetric charges, such as the transmission capacity charge or demand charges. The payment for non-residential customer accounts shall be calculated by multiplying the excess kWh credits by the customer's supply service charges that would otherwise be applicable at the end of the customer's annualized billing period. If such payment would be less than $25, the electric supplier may credit the customer's account through monthly billing. Effective January 1, 2023, a net metering customer may elect to change the end of the annualized billing period on 1 occasion, in order to better utilize excess generation even if they have changed it 1 time in the past.

2.4.3 Any excess kWh credits shall not reduce any fixed monthly customer charges imposed by the EDC.

2.4.4 The customer shall retain ownership of all RECs associated with electric energy produced from all eligible energy resources of the customer-generator facility and consumed by the customer unless the customer has relinquished such ownership by contractual agreement with a third party or by other means.

2.4.5 Subsections 2.4 through 2.4.4 shall not apply to community energy facilities, which are addressed in 26 DE Admin. Code 3013.

2.4.6 Excess kWh credits for supply service are the responsibility of the entity providing supply to the customer rather than solely the responsibility of the EDC.

2.4.7 In the event that a net energy metering customer abandons the property where the energy generating equipment is located, the equipment may remain connected to the electric distribution system, unless the equipment presents a risk to the safety and reliability of the electric distribution system.

2.4.8 Electric suppliers and EDCs shall provide net-metered customers electric service at non-discriminatory rates that are identical, with respect to rate structure and monthly charges, to the rates that a customer who is not net metering would be charged. Electric suppliers shall not charge a net metering customer any stand-by fees or similar charges.

2.4.9 If a net metering customer terminates its service with the EDC or changes electric supplier, the electric supplier terminating service shall treat the end of service period as if it were the end of the annualized billing period for any excess kWh credits.

2.4.10 If the total generating capacity, measured in megawatts (MW) of alternating current (AC), of all customer-generation using net metering systems served by an electric utility exceeds 8.0% of the capacity necessary to meet the EDC's average Delaware transmission peak demand for the preceding 3 years, the EDC may elect not to provide net metering services to additional customers.

2.4.11 Where applicable, the requirements established in subsection 2.7 of this regulation shall apply to this subsection 2.4.

2.5 [Reserved.]

2.6 [Reserved.]

2.7 Subject to the applicable net metering provisions of 26 DE Admin. Code 3012, in instances where one customer has multiple meters under the same account or different accounts, regardless of the physical location and rate class, the customer may aggregate meters for the purpose of net metering regardless of which individual meter receives energy from a customer-generator facility, provided that:

2.7.1 DP&L shall only allow meter aggregation for customer accounts of which it provides electric supply service; and

2.7.2 The customer-generator facility is designed to produce no more than 110% of the customer's aggregate electrical consumption of the individual meters or accounts that the customer is entitled to aggregate under this subsection 2.7 calculated on the average of the 2 previous 12-month periods of actual electrical usage. For new building construction or in instances where less than 2 previous 12-month periods of actual usage is available, electrical consumption will be estimated at 110% of the consumption of units of similar size and characteristics at the time of installation of energy generating equipment; and

2.7.3 A customer-generator facility shall not exceed the sum total of the capacity limits among the participants of a customer-generator facility as defined under subsections 2.2.1.1 through 2.2.1.3 of this regulation; and

2.7.4 At least 90 days before a customer commences construction of a customer-generator facility or a customer is entitled to aggregate multiple meters, the customer shall file with DP&L the following information:

2.7.4.1 A list of individual meters the customer is entitled to aggregate, identified by name, address, rate schedule, and account number, and ranked according to the order which the customer desires to apply credit for excess energy to each individual meter; and

2.7.4.2 A description of the customer-generator facility, including the facility's location, capacity, and fuel type or generating technology; and

2.7.4.3 A complete interconnection application to facilitate a transmission and distribution analysis, including an evaluation of potential reliability, safety and stability impacts, and determination of whether infrastructure upgrades are necessary and appropriate allocation of applicable interconnection costs.

2.7.5 The customer may change its list of aggregated meters specified in subsection 2.7.4.1 no more than once annually by providing 90 days' written notice; and

2.7.6 Credit shall be applied first to the meter through which the customer-generator facility supplies electricity, then through the remaining meters for the customer's accounts according to the rank order as specified in accordance with subsection 2.7.4.1; and

2.7.7 Credit in kilowatt-hours (kWh) shall be valued according to subsection 2.4 of 26 DE Admin. Code 3012 and each account's rate schedule as specified in subsection 2.7.4.1; and

2.7.8 DP&L may require that a customer's aggregated meters as specified in subsection 2.7.4.1 be read on the same billing cycle.

2.8 [Reserved.]

2.9 Nothing in this regulation is intended in any way to limit eligibility for net energy metering services based upon direct ownership, joint ownership, or third-party ownership or financing agreement related to an electric generation facility, where net energy metering would otherwise be available.

2.10 For public utilities regulated by the Commission, net metering aggregation disputes limited to the correct application of Commission-approved tariffs shall be resolved by the Commission. All other disputes with an electric supplier, DEC, or municipal electric companies shall be resolved by the appropriate governing body with jurisdiction over such disputes.

2.11 Any requirements necessary to permit interconnected operations between the customer generator facility and the electric supplier, and the costs associated with such requirements, shall be dealt with in a manner consistent with a standard tariff filed with the Commission by the electric supplier. An electric supplier's interconnection rules shall be developed by using the Interstate Renewable Energy Council's Model Interconnection Rules and best practices identified by the U.S. Department of Energy. electric suppliers shall not require eligible net metering customers who meet all applicable safety and performance standards to install excessive controls, perform or pay for unnecessary tests, or purchase excessive liability insurance.

2.12 Annual Net-Metering Report

2.12.1 Each electric supplier shall submit an annual net-metering report to the Commission 90 days after the end of the calendar year. Such report shall include the following information from the previous calendar year:

2.12.1.1 The total number of customer-generator facilities;

2.12.1.2 The total estimated rated generating capacity of its net-metered customer-generator facilities;

2.12.1.3 The total estimated net kilowatt-hours received from customer-generator facilities; and

2.12.1.4 The total estimated amount of energy produced by customer-generator facilities, using a methodology approved by the Commission.

2.12.2 The annual net-metering report may be revised as necessary to reflect changes in information available from net metered facilities upon consultation and agreement between the electric supplier and the staff of the Commission.

2.13 The Commission shall periodically review the impact of net-metering rules in 26 DE Admin. Code 3012 and recommend changes or adjustments necessary for the economic health of utilities.

2.14 A retail electric customer having on its premises 1 or more grid-integrated electric vehicles shall be credited in kilowatt-hours (kWh) for energy discharged to the grid from the grid-integrated electric vehicle's battery at the same kWh rate that customer pays to charge the battery from the grid, as determined in subsection 2.4 of this regulation. Excess kWh credits shall be handled in the same manner as net metering as described in subsection 2.4 of this regulation. To qualify, the grid-integrated electric vehicle must meet the requirements in subsections 2.2.1.1, 2.2.1.2, and 2.2.2 of this regulation. Connection and metering of grid-integrated electric vehicles shall be subject to the rules and regulations found in subsections 2.4, 2.11, and 2.12 of this regulation.

2.15 The Commission may adopt tariffs for regulated electric utilities that are not inconsistent with subsection 2.14 of this regulation. Such tariffs may include rate and credit structures that vary from those set forth in subsection 2.14 of this regulation, as long as alternative rate and credit structures are not inconsistent with the development of grid-integrated electric vehicles.

26 Del. Admin. Code § 3012-2.0

27 DE Reg. 985 (6/1/2024) (Final)