Solar & Battery Regulation & Incentive Programs

Net Metering

Program Overview


Category:
Regulatory Policy
Program Type:
Net Metering
Implementing Sector:
State
State:
Louisiana
Eligible Storage Technologies:
Geothermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Wind (Small), Hydroelectric (Small), Fuel Cells using Renewable Fuels, Microturbines
Applicable Utilities:
All utilities
System Capacity Limit:
Commercial and agricultural: 300 kW
Residential: 25 kW
Systems larger than 300 kW will be evaluated by the Public Service Commission on a case-by-case basis.
Aggregate Capacity Limit:
0.5% of retail peak demand
Net Excess Generation:
Net excess generation will be credited to the customer's next bill at retail rate and will be carried over indefinitely for customers who were interconnected before the utility reached its 0.5% of its retail peak load net metering cap.
Customers who were interconnected after the utility reaches its net metering will be credited for the excess generation at the utility's avoided cost rate.
Ownership of Renewable Energy Credits:
Not addressed as no REC program is established in Louisiana.
Meter Aggregation:
Not addressed
Applicable Sectors:
Commercial, Residential, Agricultural
Utility:
City of Abbeville, City of Alexandria, Ashley Chicot Elec Coop, Inc, Beauregard Electric Coop, Inc, Town of Boyce, Cleco Power LLC, Claiborne Electric Coop, Inc, Concordia Electric Coop, Inc, Dixie Electric Membership Corp, City of Erath, Town of Gueydan, Terrebonne Parish Consol Gov't, City of Lafayette, Jefferson Davis Elec Coop, Inc, Jonesville City of, City of Kaplan, Entergy Louisiana Inc, City of Minden, City of Natchitoches, City of New Roads, Northeast Louisiana Power Coop Inc., Panola-Harrison Elec Coop, Inc, Plaquemine City of, Pointe Coupee Elec Member Corp, City of Rayne, City of Ruston, South Louisiana Elec Coop Assn, Southwest Louisiana E M C, Southwestern Electric Power Co, Valley Electric Member Corp, Town of Vidalia, Town of Vinton, Vinton Public Power Auth, Town of Welsh, Washington-St Tammany E C, Inc, City of Winnfield, Entergy Gulf States, Inc., Elizabeth Gas & Electric
Last Updated:
01/17/2017

Summary

NOTE: On December 2016, the Public Service Commission adopted changes to the net metering rules as proposed by the Commission Staff on April 2015. The modifications i) clarifies definition of excess net metered energy (excess generation), ii) provides for transferability of interconnection agreements, and iii) require utilities to continue accepting net metering applications after reaching net metering cap, but to compensate the excess generation at the utility's avoided cost.

On December 2015, the  LA Public Service Commission initiated a rulemaking proceeding (Docket R-33929) to i) modify Commission's current net metering rule once the utility reaches the net metering cap, and to ii) examine appropriate changes to solar policies in LA. More information is available on the docket linked above. 


Louisiana enacted legislation in June 2003 establishing net metering.
 
Eligibility and Availability
Modeled on Arkansas’s law, Louisiana's law requires investor-owned utilities, municipal utilities and electric cooperatives to offer net metering to customers that generate electricity using solar, wind, hydropower, geothermal or biomass resources. Fuel cells and microturbines that generate electricity entirely derived from renewable resources are also eligible. 
Per state law, net metering is available for residential systems up to 25 kilowatts (kW) in capacity, and commercial and agricultural systems up to 300 kW that are located in the state. Systems larger than 300kW will be considered by the Public Service Commission on an individual basis. 

By the end of each calendar year, utilities must file with the PSC a report listing all existing net-metered systems and their capacities, and, where applicable, the inverter rating for each facility. The ownership of renewable-energy credits (RECs) associated with net metering has not been addressed.

The total net metering is capped at 0.5% of the monthly jurisdictional retail peak load for each utility. When this cap is reached, the utility will continue net meter additional systems, but the net excess generation from these systems will be treated differently. As of December 2015, two largest electric utilities in the state- Entergy and SWEPCO- have both reached their net metering cap. 

Interconnection
Utilities must provide customer-generators with a meter capable of measuring the flow of electricity in both directions. Utilities must pay for the cost of the meter itself, but customer-generators must pay a one-time charge to cover the installation cost of the meter. Customers are responsible for all interconnection costs.
 
Net Excess Generation
Net excess generation (NEG) is defined as the kilowatt-hours (kWh) exported to the utility by a net metered system which exceeds the total kWh supplied by the electric utility during the same billing period.  The NEG is treated differently based on when the net metered system was interconnected. 
Systems that were interconnected before the utility reaches its jurisdictional net metering cap will have their NEG credited to the customer's next billing period indefinitely. For the final month in which the customer takes service from the utility, the utility will pay the customer for the balance of any credit at the utility's avoided-cost rate.Systems that were interconnected after the utility reaches its jurisdictional net metering cap will still be allowed to interconnect but their net excess generation will be credited at the utility's avoided cost rate. 
 
Additional Resources:

* The PSC regulates investor-owned utilities and electric cooperatives in Louisiana; it does not regulate municipal-owned utilities, and its rules thereby do not apply to municipal utilities. Municipal utilities must develop their own programs based on the statute.

 


Authorities

NameEnacted DateEffective DateExpired Date
La. R.S. 51:3061 et seq.6/27/200310/1/2003
LA PSC Order, Docket No. R-2755811/30/200511/30/2005
LA PSC Docket No. R-3141706/26/2013
LA PSC Order, Docket No. R-3392912/08/201612/08/201612/08/2016