If you use solar, wind, biomass, new hydropower, recycled energy or hydrogen fuel cells and your generation capacity is less than 10 kilowatts for your home, or 25 kilowatts for your commercial or industrial business, your generation system may be eligible for IREAâ€™s net metering. Larger systems may also be eligible to interconnect as Qualifying Facilities and be subject to reimbursement from IREA for power generated to the electric grid. Applications for interconnection and system requirements are set forth in the following documents:
â€˘ Qualifying Facilities larger than 2 megawatts and less than 10 megawatts â€“ Refer to Level 3 requirements in our Small Generation Interconnection Procedures andÂ Small Generation Interconnection Guidelines
â€˘ Energy Storage Systems with Renewable Generation â€“ In addition to the documents above, refer to our Energy Storage Procedures
â€˘ Generators and Energy Storage for Back-up Power â€“ Refer to our Standby Power Connection Procedure
Please callÂ (303) 688-3100,Â 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 you on a kilowatt-hour-to-kilowatt-hour basis. If your system generates more energy than you consume, it is delivered to IREAâ€™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 â€śtrue-upâ€ť is performed each year within 60 days of the end of the April billing cycle, at which point IREA provides a bill credit or refund for any remaining excess generation accrued at IREAâ€™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..
What are distributed generation (DG) resources?
DG systems are small-scale, on-site power generating sources located at or near customersâ€™ 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 â€śsellâ€ť any excess electricity generated by their DG systems back to IREA at the retail rate.
What costs are included in IREAâ€™s current net-metering energy rate?
IREAâ€™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 IREAâ€™s customer service costs (meter installation and meter reading, service drops, billing, customer service costs) are recovered in our current net metering energy rate, which is 12.052 cents per kilowatt-hour for residential customers. The associationâ€™s â€śavoided cost,â€ť which refers to the costs IREA can avoid by purchasing an additional kilowatt-hour of energy from a net-metered customer, is estimated to be 4.5 cents per kilowatt-hour. The cost of distributing energy on IREAâ€™s grid is approximately 7.5 cents per kilowatt-hour.
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-kilowatt-hour cost) that IREA can avoid by purchasing the energy from a net-metered customer. IREAâ€™s avoided cost is approximately 4.5 cents per kilowatt-hour.
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.