Net Energy Billing

Maine offers two compensation options for customer generators and subscribers to community solar projects. Any customer may participate in the Net Energy Billing kWh Credit Program, but only non-residential customers can participate in the Net Energy Billing Tariff Rate Program. 

Net Energy Billing kWh Credit Program

While being called “net energy billing,” the Net Energy Billing kWh Credit Program functions like traditional net metering. Production and consumption are netted on a monthly basis. Excess kWh’s remaining at the end of a billing period are applied to the customer’s next bill as a kWh credit. At the end of a 12-month rolling period, any accumulated unused kilowatt-hour credits may not be applied against any future kilowatt-hour usage. Utilities must pay the value of all unused kilowatt-hour credits by January 1st each year for the benefit of those receiving low-income assistance in the form of a refund.

Systems less than 5 MW in capacity are eligible for the program. By 2025, systems with a capacity between at least 1 MW and max 2 MW can be used under the kWh Credit Program if the system is commercially operational by the date specified in a net energy billing agreement or an amended agreement.

Net Energy Billing Tariff Rate Program

The Net Energy Billing Tariff Rate Program is only available to non-residential customers. Instead of receiving kWh credits on their electric bills, participants receive dollar credits on their bills. This allows participants to potentially offset the demand charge components of their bill, which would not otherwise be offset by kWh credits. The dollar credits are based on the production of the system multiplied by a utility-specific rate that is approved annually by the Maine Public Utilities Commission. Systems less than 5 MW in capacity are eligible for the program, however, systems over 1 MW that are installed after September 1, 2022, will receive a bill credit based on a lower rate. 

After 2023, a system may be used for the Tariff Rate Program if it is collocated with all the associated customers, and that those customers are subscribed to 100% of the output. This rule does not apply to systems with a net energy billing agreement that was executed before 2024.