Excess Generation
Excess generation is a separate issue than net metering, but it is normally dealt with in the same rules, because it can arise. If local generation offsets a portion of the demand, net metering is not used. If local generation exceeds demand some of the time, for example during the day, net metering is used. If local generation exceeds demand for the billing cycle, best practices calls for a perpetual roll over of the kilowatt credits, although some regions have considered having any kilowatt credits expire after 36 months. The normal definition of excess generation is annually, although the term is equally applicable monthly. The treatment of annual excess generation (and monthly) ranges from lost, to compensation at avoided cost, to compensation at retail rate. Left over kilowatt credits upon termination of service would ideally be paid at retail rate, from the consumer standpoint, and lost, from the utility standpoint, with avoided cost a minimum compromise. Some regions allow optional payment for excess annual generation, which allows perpetual roll over or payment, at the customers choice. Both wind and solar are inherently seasonal, and it is highly likely to use up a surplus later, unless more solar panels or a larger wind turbine have been installed than needed.
Read more about this topic: Net Metering
Famous quotes containing the words excess and/or generation:
“I would rather have a young fellow too much than too little dressed: the excess on that side will wear off, with a little age and reflection; but if he is negligent at twenty, he will be a sloven at forty, and stink at fifty years old.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)
“Where do whites fit in the New Africa? Nowhere, I’m inclined to say ... and I do believe that it is true that even the gentlest and most westernised Africans would like the emotional idea of the continent entirely without the complication of the presence of the white man for a generation or two. But nowhere, as an answer for us whites, is in the same category as remarks like What’s the use of living? in the face of the threat of atomic radiation. We are living; we are in Africa.”
—Nadine Gordimer (b. 1923)