Last March, Florida’s Public Service Commission approved a net metering standard, requiring investor-owned utility companies (like Progress Energy) to ‘buy back’ electricity generated by customers from alternative systems like solar and wind.
Many of us have had questions about how this works, so I did some sleuthing…
In a standard example, where you install photovoltaic panels on your house to offset some of your energy requirements, Progress Energy will:
- Furnish, install and maintain the metering equipment to measure the kWh’s produced.
- Credit your account for kWh’s produced in excess of your usage requirements. The amount of the credit is based on ‘as-available energy costs.’ This would have averaged $.0547 per kWh during 2007, but is likely to grow given the rising costs of energy.
You are responsible for:
- Paying a $95 application fee.
- Carrying property liability insurance of at least $100k.
- Passing a local building code inspection of your PV system.
- Installing a manual disconnect switch that breaks the connection to the grid.
- Taking care of your own equipment and keeping it serviced.
See full interconnection procedures at http://www.progress-energy.com/environment/ras/florida.asp
Other government incentives are available as well. Rebates from the State of Florida are up to $20k for residential systems and up to $100k for commercial. However, this year’s funds are all gone and there are already 1,541 approved applications awaiting the release of next year’s funds on July 1, 2008, so don’t be in a hurry to get your money. http://www.dep.state.fl.us/energy/energyact/solar.htm
Federal incentives allow for a tax credit (better than a deduction!) of 30% of the PV system cost up to $2k. http://www.fsec.ucf.edu/en/media/enews/2007/2007-07_EPAct2005-R1.htm
As energy costs rise, and PV technology prices fall, this may be something most of us are pursuing at some point.
