| As of March 2023, net metering is still available in New York State through Con Ed. If you’re considering solar, it’s important to understand net metering and how it works. Net metering rules have been changing recently. In this blog post, we’ll provide an updated overview of net metering in New York with ConEd, and explain how you can take advantage of this program. It might sound complicated, but we’re here to help. 😇 What Is Net MeteringNet metering is a billing arrangement between you and your utility. Under net metering, you can offset the cost of your electric bill by generating your own electricity from solar panels or other renewable sources. When you install solar panels for your home, net metering provides a credit on your Con Ed electricity bill, making your solar installation more affordable. Net Metering: How it WorksFor net metering to work, you need to have a renewable energy system (like solar panels) installed at your home or business. Your system must be connected to the grid, and you must have a bi-directional meter installed. This type of meter tracks both the electricity that you consume from Con Ed (or your utility company), as well as the excess electricity that your system produces and sends back to the grid. Net metering is like being able to use your utility like a virtual battery: when it is sunny out and you produce more electricity than you use, you send the energy to the grid, receiving a credit in exchange. At night time, you use energy that you had put into the grid. When you generate more energy than you need, excess power is exported back to the grid and added to your Con Edison account in the form of solar usage credits. Does Con Ed Have Net MeteringYes, Con Ed has a net metering program for customers in New York. When your solar power system produces less electricity than you require, Con Edison will provide the difference. If you consume more energy from the grid than your renewable system generates, your net usage is positive, and your Con Ed bill will show charges for the kilowatt-hours consumed. Once each year, Con Ed will reconcile your “solar bank”, paying you for unused solar credits that you earned throughout the year. Con Ed multiplies excess kilowatt hours remaining by the avoided cost of energy, which is the average wholesale price of energy for the year, plus 6.6%. That amount shows up on your bill as a credit. What Are The Benefits of Net MeteringThere are several benefits of net metering, both for individuals and for the grid as a whole: For individual solar owners, net metering can:
For the grid, net metering can:
Is Net Metering Still Available in New YorkAs of June 2022, net metering is still available in New York State through Con Ed. If you’re considering solar for your home or business, net metering will help offset the cost of your electric bill and save money over time. How Can I Sign Up for Net Metering with Con EdIf you’re interested in signing up for net metering with Con Ed, the first step is to install solar. Once your system is installed and connected to the grid, you’ll need to have a bi-directional net meter or “smart meter” installed. Once your meter is installed and your system is up and running, you can begin generating credits that can be applied to your electric bill. What Is a Net Meter and Why Do I Need OneA net meter is a type of bi-directional meter that tracks both the electricity that you consume from your utility company, as well as the excess electricity that your system produces and sends back to the grid. You need a net meter in order to benefit from net metering credits because Con Ed needs to be able to measure how much electricity is being produced by your solar panels each day. You may already have a net meter; if not, Con Ed will need to install one so you can get your solar panels turned on. Pro Tip: With a net meter, you can go into Con Ed’s customer portal and download super detailed data about your home’s energy usage, so you can figure out what is using the electricity and how to improve your home’s energy efficiency! What are the Latest Changes to Net Metering in New York?The New York Public Service Commission (NYPSC) recently approved modifications to the state’s net metering rules. These changes, which began on January 1, 2022, include an extra fee for solar customers. Under the plan, solar system owners don’t receive the full retail rate of power like they previously did with net metering. Instead, a Value Stack Tariff rate would be applied. The Value Stack Tariff considers the costs and benefits of solar power to the grid and the environment, as well as rate changes based on variables like when and where the energy was generated. Homeowners installing solar can choose between VDER or net metering. We recommend to choose net metering for now, to get better savings on your electricity bill. Is there a Tax on Solar in New YorkNew residential solar projects have the option of the Value Stack Tariff or net metering beginning January 1, 2022. You’ll be charged a monthly fee if you select net metering. This cost is referred to as the Customer Benefit Contribution (CBC). This fee, shown on your electric bill, can be thought of as a tax on solar that costs around $5-10 / month, for an average sized solar panel system in New York. Will I Still Have a Bill from Con Ed After I Go SolarIf you go solar and enroll in net metering with Con Ed, you will still have a bill from Con Ed. However, the net metering credits that you generate will offset the cost of your electric usage, so your bill will be lower than it would be without solar. What Happens if I Move or Sell My HomeIf you move or sell your home, you can either keep your net metering contract with Con Ed or cancel it. If you cancel your net metering contract, you’ll need to pay a $50 cancellation fee. If you keep your net metering contract, the new owner of your home will be able to continue receiving credits on their electric bill. Should I Switch to a Time-of-Use Billing Rate or Level Payment PlanWhen you install solar and set up net metering, you should not switch to time-of-use billing rates or level payment plans. In fact, if you’re on either of those two plans now, you may want to switch off of them when you install solar. What To Do If You’re Planning to Install SolarCompared with net metering policies in other states, the new net metering rules in New York are still relatively good for homeowners. If you’re worried about these changes impacting the time to payback for your solar investment, don’t worry–the impact is minimal. Nobody knows for sure how the solar energy policies will evolve. But one thing is for sure–policies like net metering will change over time, and new policies may not benefit homeowners who install solar as much as the current net metering policy does. So here’s our advice: get in touch with a good solar installer as soon as possible, to lock in your net metering benefits, and your solar tax benefits. |
