2023 New York Laws › PBS - Public Service › Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity › 66-J - Net Energy Metering for Residential Solar, Farm Waste, Non-Residential Solar Electric Generating Systems, Micro-Combined Heat and Power Generating Equipment, Fuel Cell Electric Generating Equipment, Fuel-Flexible Linear Generator Electric Generating Equipment, and Micro-Hydroelectric Generating Equipment.

§  66-j.  Net  energy  metering  for  residential  solar,  farm waste,
non-residential solar electric generating systems,  micro-combined  heat
and power generating equipment, fuel cell electric generating equipment,
fuel-flexible   linear  generator  electric  generating  equipment,  and
micro-hydroelectric generating equipment. 1.  Definitions.  As  used  in
this section, the following terms shall have the following meanings:
(a)  "Customer-generator"  means:  (i)  a  residential  customer of an
electric corporation, who owns or  operates  solar  electric  generating
equipment  located  and used at his or her residence; (ii) a customer of
an electric corporation,  who  owns  or  operates  farm  waste  electric
generating equipment located and used at his or her "farm operation," as
such  term is defined in subdivision eleven of section three hundred one
of the agriculture and markets law; (iii) a non-residential customer  of
an electric corporation which owns or operates solar electric generating
equipment  located and used at its premises; (iv) a residential customer
of an electric corporation who owns, leases or  operates  micro-combined
heat  and power generating equipment located on the customer's premises;
(v) a residential customer of an electric corporation who  owns,  leases
or  operates  fuel  cell  generating  equipment  or fuel-flexible linear
generator  electric  generating  equipment  located  on  the  customer's
premises; and (vi) a non-residential customer of an electric corporation
who   owns,  leases  or  operates  fuel  cell  generating  equipment  or
fuel-flexible linear generator electric generating equipment located and
used at the customer's premises; (vii)  a  residential  customer  of  an
electric   corporation,   who   owns   or  operates  micro-hydroelectric
generating equipment located and used at his or her residence; (viii)  a
non-residential  customer  of  an  electric  corporation  which  owns or
operates micro-hydroelectric generating equipment located  and  used  at
its  premises;  and  (ix)  a  non-residential  customer  of  an electric
corporation which  owns  or  operates  farm  waste  electric  generating
equipment located and used at its premises.
(b) "Net energy meter" means a meter that measures the reverse flow of
electricity  to register the difference between the electricity supplied
by an electric corporation to the customer-generator and the electricity
provided to the corporation by that customer-generator.
(c) "Net energy metering" means the use  of  a  net  energy  meter  to
measure,  during  the billing period applicable to a customer-generator,
the net amount of electricity supplied by an  electric  corporation  and
provided to the corporation by a customer-generator.
(d)  "Solar electric generating equipment" means a photovoltaic system
(i) (A) in the case  of  a  residential  customer  (other  than  a  farm
utilizing  a  residential meter), with a rated capacity of not more than
twenty-five kilowatts; (B) in  the  case  of  a  customer  who  owns  or
operates  a farm operation as such term is defined in subdivision eleven
of section  three  hundred  one  of  the  agriculture  and  markets  law
utilizing a residential meter with a rated capacity of not more than one
hundred  kilowatts;  and  (C) in the case of a non-residential customer,
with a rated capacity of not more than two thousand kilowatts; and  (ii)
that  is  manufactured,  installed,  and  operated  in  accordance  with
applicable government and industry standards, that is connected  to  the
electric   system   and   operated   in  conjunction  with  an  electric
corporation's transmission and  distribution  facilities,  and  that  is
operated  in  compliance with any standards and requirements established
under this section.
(e) "Farm waste electric generating equipment"  means  equipment  that
generates   electric  energy  from  biogas  produced  by  the  anaerobic
digestion of agricultural  waste,  such  as  livestock  manure,  farming

wastes and food processing wastes with a rated capacity of not more than
two thousand kilowatts, that is:
(i)   manufactured,   installed,   and  operated  in  accordance  with
applicable government and industry standards;
(ii) connected to the electric system and operated in conjunction with
an electric corporation's transmission and distribution facilities;
(iii) operated in  compliance  with  any  standards  and  requirements
established under this section;
(iv)  fueled  at  a  minimum  of  ninety percent on an annual basis by
biogas produced from the anaerobic digestion of agricultural waste  such
as livestock manure materials, crop residues, and food processing waste;
and
(v)  fueled  by  biogas generated by anaerobic digestion with at least
fifty  percent  by  weight  of  its  feedstock  being  livestock  manure
materials on an annual basis.
(f)  "Micro-combined  heat  and  power  generating equipment" means an
integrated,  cogenerating  building   heating   and   electrical   power
generation  system,  operating on any fuel and of any applicable engine,
fuel cell, fuel-flexible linear generator, or other technology,  with  a
rated  capacity of at least one kilowatt and not more than ten kilowatts
electric and any thermal output that at full load  has  a  design  total
fuel  use  efficiency  in  the production of heat and electricity of not
less than eighty percent, and annually produces at  least  two  thousand
kilowatt hours of useful energy in the form of electricity that may work
in  combination  with  supplemental  or  parallel  conventional  heating
systems, that is manufactured, installed and operated in accordance with
applicable government and industry standards, that is connected  to  the
electric   system   and   operated   in  conjunction  with  an  electric
corporation's transmission and distribution facilities.
(g) "Fuel cell electric generating equipment" means:
(i)(A) in the case of a residential customer, a  solid  oxide,  molten
carbonate,  proton exchange membrane or phosphoric acid fuel cell with a
combined rated capacity of not more than ten kilowatts; and (B)  in  the
case  of  a  non-residential  customer, a solid oxide, molten carbonate,
proton exchange membrane or phosphoric acid fuel cell  with  a  combined
rated capacity of not more than two thousand kilowatts; and
(ii)  that  is manufactured, installed and operated in accordance with
applicable government and industry standards, that is connected  to  the
electric  system and operated in parallel with an electric corporation's
transmission and  distribution  facilities,  and  that  is  operated  in
compliance  with  any  standards and requirements established under this
section.
(h) "Micro-hydroelectric generating equipment" means  a  hydroelectric
system  (i)  (A)  in  the  case  of a residential customer, with a rated
capacity of not more than twenty-five kilowatts; and (B) in the case  of
a  non-residential  customer, with a rated capacity of not more than two
thousand kilowatts;  and  (ii)  that  is  manufactured,  installed,  and
operated   in   accordance   with  applicable  government  and  industry
standards, that is connected to the  electric  system  and  operated  in
conjunction with an electric corporation's transmission and distribution
facilities,  and  that  is operated in compliance with any standards and
requirements established under this section.
(i) "Fuel-flexible linear generator electric generating equipment"  or
"fuel-flexible  linear  generator" means an integrated system consisting
of  oscillators,  cylinders,  electricity   conversion   equipment   and
associated  balance of plant components that directly convert the linear
motion of the oscillators into electricity  and  which  has  a  combined
rated capacity of not more than two thousand kilowatts.
2.  Interconnection  and  net energy metering. An electric corporation
shall provide for the interconnection of solar and farm  waste  electric
generating   equipment,   micro-combined   heat   and  power  generating
equipment, fuel cell electric generating equipment, fuel-flexible linear
generator   electric   generating   equipment   and  micro-hydroelectric
generating equipment owned or operated by a customer-generator  and  for
net  energy metering, provided that the customer-generator enters into a
net energy metering contract with the corporation or complies  with  the
corporation's  net  energy metering schedule and complies with standards
and requirements established under this section.
3. Conditions of service. (a) (i) On or before three months after  the
effective  date of this section, each electric corporation shall develop
a model contract and file a schedule  that  establishes  consistent  and
reasonable  rates,  terms  and  conditions  for  net  energy metering to
customer-generators, according to the requirements of this section.  The
commission  shall render a decision within three months from the date on
which the schedule is filed.
(ii) On or before three  months  after  the  effective  date  of  this
subparagraph,  each  electric corporation shall develop a model contract
and file a schedule that establishes consistent  and  reasonable  rates,
terms and conditions for net energy metering to non-residential customer
generators,   according   to  the  requirements  of  this  section.  The
commission shall render a decision within three months of  the  date  on
which the schedule is filed.
(iii)  Each electric corporation shall make such contract and schedule
available to customer-generators on a first come,  first  served  basis,
until  the  total  rated  generating  capacity  for solar and farm waste
electric generating equipment, micro-combined heat and power  generating
equipment, fuel cell electric generating equipment, fuel-flexible linear
generator   electric   generating   equipment   and  micro-hydroelectric
generating equipment owned, leased or operated by customer-generators in
the corporation's service area is  equivalent  to  one  percent  of  the
corporation's  electric  demand  for  the  year  two  thousand  five, as
determined by the department.
(b) Nothing in this subdivision  shall  prohibit  a  corporation  from
providing  net  energy  metering  to additional customer-generators. The
commission shall have the authority, after January first,  two  thousand
twelve,  to increase the percent limits if it determines that additional
net energy metering is in the public interest.
(c) In the event that the electric corporation determines that  it  is
necessary  to  install a dedicated transformer or transformers, or other
equipment to  protect  the  safety  and  adequacy  of  electric  service
provided to other customers, a customer-generator shall pay the electric
corporation's   actual   costs   of   installing   the   transformer  or
transformers, or other equipment:
(i) In the case of a customer-generator who  owns  or  operates  solar
electric  generating equipment, micro-combined heat and power generating
equipment, fuel cell electric generating equipment, fuel-flexible linear
generator   electric   generating   equipment   or   micro-hydroelectric
generating  equipment  located  and  used  at his or her residence, or a
non-residential customer-generator who owns or operates  solar  electric
generating  equipment with a rated capacity of not more than twenty-five
kilowatts, up to a maximum amount of three hundred fifty dollars;
(ii) In the case of a customer-generator who  owns  or  operates  farm
waste electric generating equipment located and used at his or her "farm
operation,"  up  to  a  total  amount of five thousand dollars per "farm
operation"; and
(iii) In the case of a non-residential customer-generator who owns  or
operates  solar  electric  generating  equipment  or  fuel cell electric
generating  equipment  or  fuel-flexible   linear   generator   electric
generating equipment or micro-hydroelectric generating equipment or farm
waste   generating  equipment  as  described  in  subparagraph  (ix)  of
paragraph (a) of subdivision one of this section, with a rated  capacity
of  more  than  twenty-five  kilowatts located and used at its premises,
such cost shall be as determined by the electric corporation subject  to
review, upon the request of such customer-generator, by the department.
(d)  An  electric  corporation  shall  impose  no other charge or fee,
including back-up, stand by and demand charges, for the provision of net
energy metering to a customer-generator, except as provided in paragraph
(d) of subdivision four of this section.
(e) A customer who owns or operates a farm operation as such  term  is
defined  in  subdivision  eleven  of  section  three  hundred one of the
agriculture and markets law, or a non-residential customer-generator  as
defined  by  subparagraph  (iii)  of paragraph (a) of subdivision one of
this section that locates solar electric generating  equipment  or  farm
waste  electric generating equipment with a net energy meter on property
owned or leased by  such  customer-generator  may  designate  all  or  a
portion  of  the  net  metering  credits  generated by such equipment to
meters at any property owned or leased by such customer-generator within
the service territory of the same  electric  corporation  to  which  the
customer-generator's  net  energy  meters  are  interconnected and being
within the same load zone as determined by the location  based  marginal
price  as  of  the  date of initial request by the customer-generator to
conduct net metering. The electric corporation will credit the  accounts
of  the customer by applying any credits to the highest use meter first,
then subsequent highest use meters until all such credits are attributed
to the customer. Any  excess  credits  shall  be  carried  over  to  the
following month.
(f)  A  customer who owns or operates a farm operation as such term is
defined in subdivision eleven  of  section  three  hundred  one  of  the
agriculture  and markets law, or a non-residential customer-generator as
defined by subparagraph (viii) of paragraph (a) of  subdivision  one  of
this  section that locates micro-hydroelectric generating equipment with
a  net  energy   meter   on   property   owned   or   leased   by   such
customer-generator  may  designate  all or a portion of the net metering
credits generated by such equipment to meters at any property  owned  or
leased  by  such  customer-generator within the service territory of the
same electric corporation to which the customer-generator's  net  energy
meters  are  interconnected  and  being  within  the  same  load zone as
determined by the location based  marginal  price  as  of  the  date  of
initial  request  by the customer-generator to conduct net metering. The
electric corporation  will  credit  the  accounts  of  the  customer  by
applying  any  credits  to  the highest use meter first, then subsequent
highest use  meters  until  all  such  credits  are  attributed  to  the
customer.  Any  excess  credits  shall  be carried over to the following
month.
(g) A customer who owns or operates a farm operation as such  term  is
defined  in  subdivision  eleven  of  section  three  hundred one of the
agriculture and markets law, or a non-residential customer-generator  as
defined  by  subparagraph  (viii) of paragraph (a) of subdivision one of
this section that locates fuel cell  electric  generating  equipment  or
fuel-flexible  linear generator electric generating equipment with a net
energy meter on property owned or leased by such customer-generator  may
designate all or a portion of the net metering credits generated by such
equipment   to   meters   at  any  property  owned  or  leased  by  such

customer-generator within the service territory  of  the  same  electric
corporation  to  which  the  customer-generator's  net energy meters are
interconnected and being within the same load zone as determined by  the
location  based  marginal price as of the date of initial request by the
customer-generator to conduct net  metering.  The  electric  corporation
will  credit the accounts of the customer by applying any credits to the
highest use meter first, then subsequent highest use  meters  until  all
such credits are attributed to the customer. Any excess credits shall be
carried over to the following month.
(h)  A  non-residential  customer-generator as defined by subparagraph
(ix) of paragraph (a) of subdivision one of this  section  that  locates
farm  waste  generating  equipment with a net meter on property owned or
leased by such customer-generator may designate all or a portion of  the
net  metering  credits  generated  by  such  equipment  to meters at any
property owned or leased by such customer-generator within  the  service
territory    of   the   same   electric   corporation   to   which   the
customer-generator's net energy  meters  are  interconnected  and  being
within  the  same load zone as determined by the location based marginal
price as of the date of initial request  by  the  customer-generator  to
conduct  net metering. The electric corporation will credit the accounts
of the customer by applying any credits to the highest use meter  first,
then subsequent highest use meters until all such credits are attributed
to  the  customer.  Any  excess  credits  shall  be  carried over to the
following month.
4. Rates. An electric corporation shall use  net  energy  metering  to
measure  and  charge for the net electricity supplied by the corporation
and provided to the corporation by a  customer-generator,  according  to
these requirements:
(a)  In  the  event  that  the  amount  of electricity supplied by the
corporation during the billing period exceeds the amount of  electricity
provided  by  a  customer-generator,  the  corporation  shall charge the
customer-generator for the net electricity supplied at the same rate per
kilowatt hour applicable to service provided to other customers  in  the
same service class which do not generate electricity onsite.
(b)  In  the  event  that  the  amount  of  electricity  produced by a
customer-generator during the  billing  period  exceeds  the  amount  of
electricity  used by the customer-generator, the corporation shall apply
a credit to the next bill for service to the customer-generator for  the
net  electricity  provided at the same rate per kilowatt hour applicable
to service provided to other customers in the same service  class  which
do  not  generate electricity onsite, except for micro-combined heat and
power or fuel cell or fuel-flexible linear generator customer-generators
or farm waste generating equipment customer-generators as  described  in
subparagraph  (ix)  of paragraph (a) of subdivision one of this section,
who will be credited at the corporation's  avoided  costs.  The  avoided
cost  credit  provided  to micro-combined heat and power or fuel cell or
fuel-flexible  linear  generator  customer-generators  or   farm   waste
generating  equipment  customer-generators  as described in subparagraph
(ix) of paragraph (a) of  subdivision  one  of  this  section  shall  be
treated  for  ratemaking  purposes  as  a purchase of electricity in the
market that is includable in commodity costs.
(c) At the end of the year or annualized over the period that  service
is  supplied  by  means  of  net  energy metering, the corporation shall
promptly issue payment at its avoided cost to the customer-generator, as
defined  in  subparagraph  (i),  (ii)  or  (ix)  of  paragraph  (a)   of
subdivision  one  of this section, for the value of any remaining credit
for the  excess  electricity  produced  during  the  year  or  over  the
annualized period by the customer-generator.
(d)  In  the  event  that  the  corporation  imposes  charges based on
kilowatt demand on customers who are in the same service  class  as  the
customer-generator  but  which  do not generate electricity on site, the
corporation may impose the  same  charges  at  the  same  rates  to  the
customer-generator, provided, however, that the kilowatt demand for such
demand  charges  is  determined  by the maximum measured kilowatt demand
actually supplied by the corporation to  the  customer-generator  during
the billing period.
5. Safety standards. (a) On or before three months after the effective
date   of  this  section,  each  electric  corporation  shall  establish
standards  that  are  necessary  for  net  energy   metering   and   the
interconnection  of  residential solar or farm waste electric generating
equipment, micro-combined heat and power generating equipment  and  fuel
cell  electric  generating  equipment,  fuel-flexible  linear  generator
electric  generating  equipment   and   micro-hydroelectric   generating
equipment  to  its  system  and  that the commission shall determine are
necessary for safe and adequate service and further  the  public  policy
set  forth  in this section. Such standards may include but shall not be
limited to:
(i) equipment  necessary  to  isolate  automatically  the  residential
solar,  farm waste, micro-combined heat and power and fuel cell electric
generating system and fuel-flexible linear generator electric generating
equipment and micro-hydroelectric generating equipment from the  utility
system for voltage and frequency deviations; and
(ii)   a   manual   lockable   disconnect   switch   provided  by  the
customer-generator  which  shall  be  located  on  the  outside  of  the
customer's  premises  and  externally  accessible  for  the  purpose  of
isolating the residential  solar  and  farm  waste  electric  generating
equipment and micro-hydroelectric generating equipment.
(b)  Upon  its  own motion or upon a complaint, the commission, or its
designated representative, may investigate and make a  determination  as
to  the  reasonableness and necessity of the standards or responsibility
for compliance with the standards.
(i) In the case of a customer-generator who  owns  or  operates  solar
electric  generating equipment located and used at his or her residence;
an electric corporation may not require a customer-generator  to  comply
with  additional  safety  or  performance  standards, perform or pay for
additional tests, or purchase additional  liability  insurance  provided
that  the residential solar or farm waste electric generating equipment,
micro-combined heat and power generating equipment, fuel  cell  electric
generating equipment, fuel-flexible linear generator electric generating
equipment  or  micro-hydroelectric generating equipment meets the safety
standards established pursuant to this paragraph.
(ii) In the case of a customer-generator who  owns  or  operates  farm
waste electric generating equipment located and used at his or her "farm
operation," an electric corporation may not require a customer-generator
to  comply  with  additional safety or performance standards, perform or
pay for additional tests, or  purchase  additional  liability  insurance
provided that:
1.  the  electric  generating  equipment  meets  the  safety standards
established pursuant to this paragraph; and
2. the total rated generating capacity (measured in kW) of farm  waste
electric  generating equipment that provides electricity to the electric
corporation through the same local feeder line, does not  exceed  twenty
percent of the rated capacity of that local feeder line.
(iii)  In  the  event that the total rated generating capacity of farm
waste electric generating equipment that  provides  electricity  to  the
electric  corporation  through the same local feeder line exceeds twenty

percent of the rated capacity of the local  feeder  line,  the  electric
corporation may require the customer-generator to comply with reasonable
measures to ensure safety of that local feeder line.
5-a.  Safety  standards;  non-residential  solar  electric  generating
equipment and micro-hydroelectric generating equipment. (a) On or before
three months after the effective date of this subdivision, each electric
corporation shall establish standards that are necessary for net  energy
metering  and  the  interconnection  of  non-residential  solar electric
generating equipment or micro-hydroelectric generating equipment to  its
system  and  that  the commission shall determine are necessary for safe
and adequate service and further the public policy  set  forth  in  this
section. Such standards may include but shall not be limited to:
(i)  equipment necessary to isolate automatically the solar generating
system or micro-hydroelectric  generating  equipment  from  the  utility
system for voltage and frequency deviations; and
(ii)   a   manual   lockable   disconnect   switch   provided  by  the
customer-generator  which  shall  be  located  on  the  outside  of  the
customer-generator's  premises and externally accessible for the purpose
of   isolating   the   solar   electric    generating    equipment    or
micro-hydroelectric generating equipment.
(b)  In  the  event  that the total rated generating capacity of solar
electric  generating   equipment   or   micro-hydroelectric   generating
equipment  that provides electricity to the electric corporation through
the same local feeder line exceeds twenty percent of the rated  capacity
of  the  local  feeder  line,  the  electric corporation may require the
customer-generator to comply with reasonable measures to  ensure  safety
of the local feeder line.
(c)  Unless otherwise determined to be necessary by the commission, an
electric corporation may not require a customer-generator to comply with
additional  safety  or  performance  standards,  perform  or   pay   for
additional  tests,  or  purchase additional liability insurance provided
that the solar  electric  generating  equipment  or  micro-hydroelectric
generating  equipment meets the safety standards established pursuant to
this subdivision.
(d) Upon its own motion or upon a complaint, the  commission,  or  its
designated  representative,  may investigate and make a determination as
to the reasonableness and necessity of the standards  or  responsibility
for compliance with the standards.
6.  Electric  restructuring.  Notwithstanding  the  provisions of this
section, including, but not limited  to  paragraph  (b)  of  subdivision
three  of  this  section,  a  customer-generator  shall  comply with any
applicable determinations of the commission relating to restructuring of
the electric industry.
7. Severability of provisions. The provisions of this section shall be
severable and if the application of  any  clause,  sentence,  paragraph,
subdivision,  section,  or  part  thereof  to any person or circumstance
shall be adjudged by any court of competent jurisdiction to be  invalid,
such  judgment  shall  not necessarily affect, impair, or invalidate the
application  of  any  such  clause,  sentence,  paragraph,  subdivision,
section,  part  or  remainder  thereof, as the case may be, to any other
person, circumstance, but shall be confined  in  its  operation  to  the
clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
directly involved in the controversy in which such judgment  shall  have
been rendered.