Filed under: Green Power, Hydroelectric Generation, Renewable Power, Solar Generation, Wind Generation, net metering | Tags: net metering
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To encourage the use of green renewable power, many States have encouraged local utilities to develop a tariff/electrical rate that provide incentives for this generation. In 2005 Net Metering was established in Indiana.
With “net metering”, the customer is able to sell any excess power that they generate back to the utility for full tariff rate. They essentially “run their meters backwards”. This rate is often much higher than the rate normally paid for power generated by independent power producers. That rate is often referred to the “avoided cost” rate.
In the case of customers served by Northern Indiana Public Service Company (NIPSCO), the net metering value is nearly ten cents per kilowatt hour. That is an excellent rate! It makes it far more feasible to invest in green power generation.
Currently, in the NIPSCO system, net metering is limited to schools, grade K – 12 and residential customers. The generation sources that qualify for the tariff are those using solar, wind or hydro generation.
Interested? Call your local utility and see if net metering is offered in your area? Each utility has the right to place restrictions on the program. Read the fine print carefully!
Rudd Asset Management specializes in energy efficiency and in the development and operation of green renewable power and green fuel supply. Contact us at (219) 464-7054.
