Newfoundland announces new net metering policy framework

Newfoundland and Labrador Net Metering lets customers with solar, wind, and other renewable energy feed the grid, earn kWh credits, and offset bills at retail rates under utility programs and a 5 MW cap.

The Honourable Derrick Dalley, Minister of Natural Resources, recently announced the province’s new net metering policy framework. Net metering will allow utility customers with small-scale generating facilities to generate power from renewable sources for their own consumption.

Once the framework is fully implemented by the utilities, as seen with New Brunswick utility legislation efforts elsewhere, customers will be able to feed power into the distribution system during periods when they generate excess power and draw power from the grid when their generation does not fully meet their needs.

“The Provincial Government is committed to further diversifying the province’s electricity supply mix with renewable sources of energy. By implementing this new policy framework, we are fulfilling one of the province’s long-term Energy Plan commitments – to provide the regulatory support to develop and implement a net metering policy for small-scale renewable energy sources. In addition, the new policy framework will provide guidance for Newfoundland Power and Newfoundland and Labrador Hydro to develop their applications for net metering programs for submission to the Board of Commissioners of Public Utilities. We are confident this new policy will provide value while protecting the ratepayers,” says The Honourable Derrick Dalley, Minister of Natural Resources.

The Government of Newfoundland and Labrador is responsible for providing the policy, legislative and regulatory framework, consistent with broader Electricity Reform Act approaches in other jurisdictions, under which net metering programs will be developed by the utilities and reviewed by the regulator. The Provincial Government worked with Newfoundland and Labrador Hydro and Newfoundland Power to develop this policy framework, and will continue to work with them and the regulator to monitor and evaluate the new policy and the net metering programs made available to customers.

Details of the policy framework can be found in the backgrounder below, and are similar in scope to the New Brunswick Electricity Act for context.

“Newfoundland and Labrador Hydro is committed to supporting clean, renewable energy, highlighted in Newfoundland electricity news recently, and welcomes the addition of a new metering policy. We look forward to developing a net metering program which will ultimately enable our customers to offset their own power requirements from the grid and support environmental sustainability," Rob Henderson, Vice President, Newfoundland and Labrador Hydro.

In 2014, the Provincial Government hired Navigant Consulting Limited to research relevant standard industry practices and to provide guidance on developing a net metering policy which would give customers the option to displace their electricity requirements with their own renewable energy sources. Navigant Consulting Limited’s final report was released to the public on December 11, 2014.

“Newfoundland Power is pleased that the Government of Newfoundland and Labrador has established a net metering policy framework. Based on this framework, and in collaboration with Newfoundland and Labrador Hydro, we will now develop a net metering program, including eligibility requirements and technical specifications amid Newfoundland Power rate drop discussions. The net metering program will subsequently be submitted to the Board of Commissioners of Public Utilities for approval prior to implementation," says Gary Murray, Vice President of Engineering and Operations.

Government of Newfoundland and Labrador Net Metering Policy Framework

The Provincial Government’s new net metering policy will allow utility customers with small-scale generating facilities to generate power from renewable sources for their own consumption. They will be able to feed power into the distribution system during periods when they generate excess power and draw power from the grid when their generation does not fully meet their needs.

Key elements in the net metering policy framework include:

- Eligibility is limited to small-scale renewable energy sources

- The programs will be available to domestic and general service commercial customers

- Individual renewable generation systems will be limited up to a maximum of 100kW and cannot be sized beyond a customer’s load

- Meter aggregation is not permitted only one metering point per account and property

- A customer’s net consumption will be billed using retail rates that are consistent with those that apply to a non-net metering customer of the same size, type and location

- A customer’s net excess generation will be credited at the end of a billing period for example, monthly as a kWh credit or an electricity lump-sum credit where applicable

- Annually, net excess generation will be settled with a cash payment or bill credit at the retail rates that are used to determine the bill for the customer’s net consumption. Whether it is a cash payment or bill credit will be proposed by the utilities and subject to PUB approval and may align with potential electricity rebate mechanisms under consideration

- The program will have a provincial cap of five megawatts MW and

- Following implementation, the Provincial Government, in consultation with the utilities and the PUB, will monitor and review the policy framework and the utilities’ net metering programs.

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