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What is Net Metering? Net energy metering, or net metering, is defined as "measuring the difference between the electricity supplied over the electric distribution system and the electricity generated by an eligible customer-generator which is fed back into the electric distribution system over a billing period." Simply stated, the meter is allowed to register the flow of electricity in both directions, and only the net amount is billed (or credited) each month. Why is Net Metering Beneficial? Utility retail distribution rates for consumption are typically higher than market pricing for generation alone since retail rates include delivery costs and other charges. Net energy metering essentially values the generated energy at the full distribution rate of the local utility. I.e., the generated energy is allowed to directly offset retail energy consumption. This provides substantial economic benefits to eligible customer-generators. Who is Eligible for Net Metering? As defined in RSA 362-A:1, II-b, an eligible customer-generator is an electric utility customer who owns and operates electrical generating facilities for all Renewable Fuel up to 100 kilowatts. The generation must be installed on the customer's premises, be interconnected and operated in parallel with the electric grid, and be utilized primarily to offset part or all of the customer's own electricity requirements.
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