NABCEP Grid Interconnection 2 — Questions and Answers
Question 1: Net metering allows a residential solar PV customer to:
- Receive wholesale electricity rates for all power generated on-site
- Receive a bill credit for excess electricity exported to the grid, applied against electricity consumed from the grid (Correct answer)
- Sell electricity directly to neighboring customers at market rates
- Avoid all utility fixed charges and demand fees
Correct answer: Receive a bill credit for excess electricity exported to the grid, applied against electricity consumed from the grid
Net metering credits customers for excess generation exported to the grid, typically at the retail rate, which offsets future consumption charges on their utility bill.
Question 2: A bidirectional meter used in a net metering solar installation measures:
- Only electricity consumed from the utility grid
- Only electricity exported from the PV system to the grid
- Both electricity imported from and electricity exported to the utility grid (Correct answer)
- Real-time DC output from the solar panels
Correct answer: Both electricity imported from and electricity exported to the utility grid
A bidirectional meter tracks energy flow in both directions — electricity drawn from the utility and electricity sent back — enabling accurate net metering billing.
Question 3: Which regulatory body has primary jurisdiction over retail net metering policies for residential solar customers?
- FERC (Federal Energy Regulatory Commission)
- EPA (Environmental Protection Agency)
- State Public Utility Commissions (PUCs) (Correct answer)
- DOE (Department of Energy)
Correct answer: State Public Utility Commissions (PUCs)
Retail net metering is regulated at the state level by state Public Utility Commissions; FERC only has jurisdiction over wholesale electricity markets and interstate transmission.
Question 4: 'True-up' billing in a net metering arrangement refers to:
- Correcting errors found in monthly electricity invoices
- An annual settlement where accumulated net metering credits are reconciled against total annual electricity consumption (Correct answer)
- Upgrading a standard meter to bidirectional net metering capability
- Connecting the final electrical wire from the inverter to the service panel
Correct answer: An annual settlement where accumulated net metering credits are reconciled against total annual electricity consumption
True-up billing, used in California and other states, settles the customer's net metering credit balance at year-end, with any remaining surplus typically paid at avoided-cost rates.
Question 5: What distinguishes 'net billing' from traditional net metering?
- Net billing applies two separate utility bills per month
- Net billing compensates exported solar electricity at a lower avoided-cost or wholesale rate rather than the full retail rate (Correct answer)
- Net billing charges customers for both importing and exporting electricity
- Net billing requires a separate dedicated export meter
Correct answer: Net billing compensates exported solar electricity at a lower avoided-cost or wholesale rate rather than the full retail rate
Net billing compensates exported solar electricity at an avoided-cost or wholesale rate rather than the full retail rate used in traditional net metering, reducing the financial benefit of exporting.
Question 6: A solar customer's bill shows 800 kWh consumed from the grid and 1,000 kWh exported to the grid during the month. Under net metering at $0.12/kWh retail rate, what is their net position before fixed charges?
- A charge of $24.00
- A charge of $96.00
- A credit of $24.00 (Correct answer)
- A zero balance (net zero)
Correct answer: A credit of $24.00
The customer exported 200 kWh more than consumed (1,000 − 800 = 200 kWh), earning a credit of 200 × $0.12 = $24.00 to carry forward on future bills.
Question 7: Under many state net metering programs, what typically happens to excess annual generation credits at the annual true-up date?
- They roll over indefinitely at full retail value into future years
- They are donated automatically to low-income energy assistance programs
- They expire or are paid out at a reduced avoided-cost rate rather than the full retail rate (Correct answer)
- They are applied as a credit toward grid interconnection fees
Correct answer: They expire or are paid out at a reduced avoided-cost rate rather than the full retail rate
Most net metering programs reset or cash out remaining annual excess credits at avoided-cost (wholesale) rates at true-up, incentivizing customers to right-size their systems.
NABCEP Grid Interconnection 2
Net metering allows a residential solar PV customer to: