Tariff schedules are the effective rates, charges, and rules of the Utility. When commercial and industrial customers start service with the Utility, they are assigned to an appropriate tariff for electric and gas service. This is shown as the "Service/Rate" on the electric and gas bill.
Analysis of utility tariffs applicable to Distributed Generation, and determining if a system will qualify for a particular tariff, is a vital part of a project planning and feasibility study. Impact of changing tariffs should be fully understood before making a decision to proceed with the project.
Note on tariffs: customers can request a tariff/rate analysis from their utility account representative to see if they would benefit from being on a different rate.
What is Net Metering?
SDG&E) and customers who generate their own electricity with photovoltaic or wind systems. measures the difference between the electricity delivered by SDG&E and the excess electricity you produce using your own generating equipment. Any energy you produce that you don't use, is fed back onto the utility grid and it's deducted from your electric bill. SDG&E will credit customers up to 100% of their annual consumption.is a billing arrangement between San Diego Gas & Electric (
Please visit SDG&E's Net Energy Metering website for more information.
The Smiths installed a net metered photovoltaic generating system on their home and began generating on March 1st. Over the next twelve months, their system produced more electricity than they needed in some months and less than they needed in other months. Their monthly consumption of electricity, monthly generation of electricity, and the net amount of electricity fed into or taken from the grid are shown below.
|MONTH||MAR||APR||MAY||JUN||JUL||AUG||OCT||NOV||DEC||JAN||FEB||12 MONTH TOTALS|
|-hours ( ) consumed||425||475||525||625||725||450||675||525||450||375||375||400||6,025|
|-hours ( ) generated||490||525||550||550||600||600||500||475||400||375||385||400||5,850|
|Net from/ (to) the grid||(65)||(50)||(25)||75||125||(150)||175||50||50||0||(10)||0||175|
During the summer months, because they used their air conditioning a lot, the Smiths consumed more electricity than their system produced, and they were "net" consumers. However, the Smiths were on vacation much of August so their lower electrical use made them "net" generators that month. In the spring months, their system was able to produce more than they needed and their meter often ran backwards. Their meter had a negative reading at the end of these spring months, making the Smiths "net" generators of electricity during these periods.
On the following March 1st, the first anniversary of theiragreement, the Smiths' electric service provider added up the past 12 monthly meter readings and found that over the past year the Smiths were "net" consumers of 175 -hours ( ) of electricity. The Smiths' provider charged an average rate of 10 cents per to residential customers like the Smiths, so at the end of the first twelve months their electric service provider billed them for $17.50 (net 175 consumed x 10 cents/ ).
What other state incentives are there in California?
Aside from the Self Generation Incentive Program ( SGIP) which incentivizes fuel cell, wind and advanced energy storage the California Energy Commission Emerging Renewables Program also incentivizes renewables. In the case of wind turbines and fuel cells it handles those products that are under 30kW. However please note that in the case of nonrenewable fuel cells the SGIP does in fact incentivize these projects at any size. Go to their website to learn more http://www.consumerenergycenter.org/erprebate/program.html
Yes, there is a 30% federal tax credit and an accelerated depreciation schedule for renewable technologies (5 YR Modified Acceleration Cost Recovery System (MACRS)).
There are in fact incentives currently available for small wind generation. The agency that manages these incentives is the California Energy Commission Emerging Renewables Program or for short CEC ERP.
The incentives for wind turbines are as follows:
- $3/W up to 10kW
- $1.5/W for 10kW to 30kW
Note that these incentives apply only to approved turbines. You will need to visit their site in order to obtain a list of approved wind turbines. This is the CEC ERP website - http://www.consumerenergycenter.org/erprebate/program.html