Net Metering

March 07, 2024

Summary

Ohio's net-metering law requires electric distribution utilities to offer net metering to customers who generate electricity using wind energy, solar energy, biomass, landfill gas, hydropower, fuel cells, or microturbines. Net-metered customers are required to use a single meter capable of recording the flow of electricity in each direction. Under the state's net-metering law, competitive retail electric service (CRES) providers are not required to enter into a net metering contract with a customer. Electric utilities must offer a standard net metering tariff to all requesting customers.

Net-metered systems must meet safety standards specified by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and Underwriters Laboratories (UL). Utilities may not require customer generators to comply with additional safety and performance standards.

System Capacity Limit

There is no specific capacity limit specified. However, a customer generator must size its facility so that it does not exceed 120% of its electricity requirement. The facility must be sized primarily to offset part or all of the customer's electricity requirements.

Net Excess Generation

Credits can be used to offset charges in future months and can be carried forward continuously. Credits for excess generation are calculated based on the energy-only component of the utility's Standard Service Offer and are applied as a monetary credit to the customer's bill. Utilities are not required pay the monetary credit. CRES providers are allowed to offer net-metering contracts to customer-generators at any price, rate, credit, or refund for net excess generation.  Customers can choose from multiple net metering offers between various competitive providers. Electric utilities are not allowed to impose charges on the electricity that the customer-generator feeds back to the grid.

Renewable Energy Credits

Renewable Energy Credits (RECs) that are associated with the customer's net metering facility is owned by the customer, unless otherwise contracted with a utility, competitive retail electric service provider, or other entity.

Hospital Requirements

The electric distribution utilities and CRES providers are required to develop a separate net metering tariff for hospital facilities. Qualifying hospital customer generators are not limited to the same energy generation technologies or system size restrictions described above for non-hospital net-metered customers. Two meters or a single meter with two registers capable of separately measuring flow of electricity in both directions are required for hospital net metering. All electricity generated by the hospital (including that generation used directly by the hospital and that which is sent back to the utility) will be credited at the market value at the time of generation. Electricity flowing from the utility and used by the hospital will be charged at the same rates as normal, as if the hospital were not net metering. The monthly bill will calculate the net of this total hospital customer generation vs. utility-provided electricity to determine the bill. Any net credit dollar amount will be used against the hospital’s bill until the hospital requests a refund for any accumulated credits over a 12-month period.