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Generation Interconnections

If you use solar, wind, biomass, new hydropower, recycled energy or hydrogen fuel cells and your generation capacity is less than 10 kW for your home, or 25 kW for your commercial or industrial business, your generation system is eligible for IREA’s net metering. Your system must meet the criteria set forth in our Small Generation Interconnection Procedure (SGIP) or our Qualifying Facility Large Generator Interconnection Procedure (LGIP).

Please call (303) 688-3100, Ext. 5302, to have an information packet sent, which includes cover letter, list of documents needed, interconnection agreement and rules and regulations.

Net Metering FAQs

How does net-metering work?

The energy your interconnected renewable system generates directly offsets energy that IREA provides to you on a kWh-to-kWh basis. If your system generates more energy than you consume, it is delivered to IREA’s distribution system. If, during a monthly billing period, the energy delivered to IREA exceeds the amount of energy delivered to you from IREA, that energy is credited and carried forward to offset use in future months. An annual “true-up” is performed each year within 60 days following the end of the May billing cycle, IREA provides a bill credit or refund for any remaining excess generation accrued at IREA’s avoided cost of power as calculated by IREA for the previous calendar year. The monthly service charge remains applicable each month and a Load Factor Adjustment may be applicable as well.

What are distributed generation (DG) resources?

DG systems are small-scale, on-site power generating sources located at or near customers’ homes or businesses. Some common examples include rooftop solar panels, micro-turbines, small wind and combined heat and power systems. Customers with these types of generation systems connect to the local electric grid and use the grid both to buy power from IREA during times when their DG systems are not producing enough to meet their needs and to sell power to IREA when their systems are producing more electricity than is needed.

What is meant by net-metering?

Net-metering is a billing system that allows electric customers with DG resources to offset their energy usage by their DG output, and effectively “sell” any excess electricity generated by their DG systems back to IREA at the retail rate.

Is IREA proposing a connection fee increase for net-metering customers?

Not at this time.

Is IREA proposing a new customer service charge for net-metering customers?

No. The customer service charge for IREA’s net-metering customers is currently $10 per month. There are no plans to change this amount.

What costs are included in IREA’s current net-metering energy rate?

IREA’s cost of generating or purchasing energy (fuel costs, purchased power costs and power plant costs) as well as costs incurred to transmit and distribute energy to our residential customers (the cost of items like power lines and substations), and more than half of IREA’s customer service costs (meter installation and meter reading, service drops, billing, customer service costs) are all recovered in our current net-metering energy rate, which is 12.3 cents/kWh for residential customers. The association’s “avoided cost,” which refers to the costs that IREA can avoid by purchasing an additional kilowatt-hour of energy from a net-metered customer, is estimated to be 4.5 cents/kWh. The cost of distributing energy on IREA’s grid is approximately 7.8 cents/kWh.

What is meant by avoided cost?

The avoided cost of energy in this context refers to the cost associated with fuel, purchased energy, generated and purchased capacity, and line losses (expressed as a per-kWh cost) that IREA can avoid by purchasing the energy from a net-metered customer. IREA’s avoided cost is approximately 4.5 cents/kWh.

Additional Information

For more information on net metering, call (303) 688-3100, Ext. 5302, or toll-free (800) 332-9540. If you want more information on renewable energy, visit our Renewable Energy Credits page.