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Net Metering

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Net Metering

The term “net” comes from the fact that electricity produced by your renewable generation is subtracted from your total bill.  In simple terms, we take the kWh that is produced from the renewable generation and subtract it from your total energy usage(kwh). If you happen to produce more than you use for the month, any remainder is carried over and applied to your next month’s bill. The excess generation will continue to do this until the credit is utilized or the calendar year expires. Any excess generation remaining at the end of the calendar year will then be reset.

What must I do to get a net metering facility approved by Craighead Electric?

Before Craighead Electric approves a net metering facility, the following conditions must be met:

  • The net metering facility must use solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity.
  • The net metering facility must have a generating capacity of no more than 25-kW for residential use or 300-kW for any other use.
  • The net metering facility must be interconnected to a metered service billed under rate schedule 1, 2, 8, 9, 10, or 20 of Craighead Electric’s metered rates.
  • The Craighead Electric account must be in the name of the owner of the net metering facility.
  • The net metering facility must be intended primarily to offset some or all of the net metering customer’s requirements for electricity.
  • Additional services on the same premises are eligible for net metering provided the combined size of all net metering facilities for residential use does not exceed 25-kW and the combined size of all net metering facilities for non-residential use does not exceed 300-kW.

How is billing handled with a net metering facility?

  • If the electricity generated by the net metering facility is fed back to the cooperative and exceeds the electricity supplied by the cooperative during the billing period, then the member will receive a kWh credit for the accumulated net excess kWh from month-to-month until the end of the calendar year. The member will not receive a special bill. The kWh credit will be maintained in Craighead Electric’s billing system. The monthly availability charge and minimum bill still applies even if no electricity is purchased from Craighead Electric.
  • At the request of the member, monthly excess kWh credits may be transferred to additional accounts in a rank order provided by the member. The additional accounts must be in the name of the member who owns the net metering facility. The member must provide the rank order of additional accounts at least 30 days prior to the first requested transfer, and the member only can make changes to the rank order one time in the calendar year. (See Net Metering Account Transfer Request form in Downloads below.) If the additional accounts are not in the same billing cycle as the net-metered account, those accounts will be moved to a common billing cycle. The additional accounts do not have to be the same class of service. Excess kWh credits will be applied to the additional accounts up to the amount needed to net zero the kWh usage on each account in the rank order provided. Credit kWh will not be divided proportionately across the additional accounts, and the additional accounts cannot carry forward credit kWh from month to month. If the member has multiple net metering facilities, each net meter facility must have its own rank order list of additional accounts. An account only can be assigned to one rank order list. . Download Net Metering Excess KwH Credit Transfer for more information.

What are the net metering installation requirements?

  • The net metering system is required to meet all local and national electrical codes, including National Electrical Code, the Institute of Electrical and Electronics Engineers, the National Electrical Safety Code and Underwriters Laboratory. Craighead Electric assumes no liability or responsibility for the installation or operation of the net metering system because the cooperative does not inspect the equipment, wiring or installation beyond the interconnection to the meter. Member must submit a design drawing and product literature to the Craighead Electric engineering department for Craighead Electric’s approval prior to the installation. The department may be reached at 800-794-5012.
  • The member must complete and submit a copy of the standard interconnection agreement and ownership affirmation (see Downloads below) at least 30 days prior to the planned interconnection. The interconnection agreement will be signed at the time the system is commissioned by Craighead Electric. Once the equipment is installed, the member must contact Craighead Electric to schedule a site visit for Craighead Electric personnel to commission the installation. The net metering equipment must remain disconnected from the electric meter until the system is commissioned by Craighead Electric. Craighead Electric will verify two things at the time of the site visit – that the net metering equipment disconnects from the electric meter during a power outage and that the electric meter runs backward when the net metering equipment is feeding back to the cooperative.

Can I build a solar array or wind farm and sell power to Craighead Electric?

  • A renewable energy power plant, regardless of size, can be connected to Craighead Electric’s distribution system if certified as a qualifying facility by Arkansas Electric Cooperative Corporation. Power will be purchased by AECC through a wholesale power contract. Certification is a lengthy and costly process, and the member should carefully evaluate the economics of the facility before choosing this option over net metering.



         Prelimary Interconnection Site Review Request(PDF)

         Standard Interconnection Agreement(PDF)

         Net Metering Rate Schedule(8-12-2015)(PDF)

          Net Metering Flyer(PDF)

          Net Metering Account KWH Transfer Request Form(PDF)

          Arkansas Public Service Commission Net Metering Rules(PDF)

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