Net Metering John Mc Comb P E Customer

Net Metering • John Mc. Comb: P. E. • Customer Service Customer Technology Support • July 17, 2012

Net metering measures both energy used from the grid and excess energy produced that is sent to the grid FPL’s meter only measures the “excess energy” sent to the grid, not the total energy produced by the PV system 2

Renewable energy systems interconnected with the utility need a Net Metering Interconnection agreement even if they will not feed excess energy to the grid. Net Metering / Interconnection Agreement • Net metering – A supplement to the retail tariffs which provides credit to a customer for all excess renewable energy they produce and send to the grid • Interconnection agreement – An agreement with the customer, allowing them to interconnect a renewable energy source to the grid through their internal wiring 3

Net Metering is for systems designed to offset on-site usage, not ones that are designed to produce energy in excess of consumption. Net Metering • The Net Metering Rule was passed into state law on March 19, 2008, requiring investor-owned utilities to facilitate the interconnection of customer-owned renewable power generation. • The goal of net metering is to allow a customer to offset all or part of their energy usage at an individual metered service account. • As of June 30 th 2012, FPL’s 1, 894 net metered customers have 16. 78 MWs AC of renewable energy interconnected with the grid. 4

The Florida Public Service Commission has defined eight renewable energy sources that are eligible for Net Metering. Renewable Energy Sources Eligible for Net Metering • • 5 Biomass (landfill gas or methane) Hydroelectric Ocean energy ( tidal power or ocean currents) Hydrogen power (fuel cells) Waste heat Geothermal energy Wind energy Photovoltaic (PV)

Net Metering applies to all FPL retail customers. Net Metering Project Scope • Promote small customer-owned renewable generation – – – Primarily intended to offset part or all of the customer’s load Does not include retail purchase of electricity from third party Third party cannot sell or lease based on k. Wh Maximum size is 2 MW No minimum for interconnect – 2 k. W minimum for rebate Sizes divided into Tier 1, 2, and 3 • Requires standard interconnection agreement – Cannot exceed 90 percent of customer’s utility distribution service – Inverter UL listed for continuous interactive operation 6

There are three separate Net Metering Interconnection Agreements - based on the systems Gross Power Rating. Tiers 1 0 to 10 k. W AC 2 >10 to 100 k. W AC 3 >100 AC k. W to 2 MW AC Gross Power Rating AC k. W = DC k. W x 0. 85 7

As of June 1 st, FPL has 1, 703 Tier 1 Customers. Tier 1 • Up to 10 k. W AC, 11. 77 k. W DC = AC x 0. 85 (mostly residential and small business) – No charge for application or bidirectional meter – Standard application and interconnection agreement Agreement cannot be amended – – – 8 No insurance requirements Disconnect switch not required Cannot exceed 90 percent of allocated service size without CIAC Must still pay monthly customer charge if 0 k. Wh For governmental customers, we have a letter indicating customers liability is limited by Florida statutes

As of June 1 st, FPL has 184 Tier 2 Customers. Tier 2 • Over 10 k. W AC up to 100 k. W AC (Large residential, small and medium businesses) – $400 application fee – Standard application and interconnection agreement (nonnegotiable) – Facilities review required – Visible disconnect switch required (addendum available for remote readily accessible switches) – Cannot exceed 90 percent of allocated service size without CIAC – Liability insurance requirement of at least $1 million – Liability limit for governmental customers 9

As of June 1 st, FPL has 7 Tier 3 Customers. Tier 3 • Over 100 k. W up to 2 MW AC (Largest net meter) (Large businesses) – Application fee depends on system size – Standard application and interconnection agreement (nonnegotiable) – May fast track or require a study – Visible disconnect switch required (addendum available for remote readily accessible switches) – Cannot exceed 90 percent of allocated service size without CIAC – Insurance required – at least $2 million – Liability limit for governmental customers 10

A bi-directional meter is used to measure both regular usage and excess energy sent to the grid. Metering for Net Metering • Meter code starts with: – BC (120/240 single phase) – or ends with N (all other bi-directional) • Bidirectional Meter (cycles three displays) – “+” or “POS” screen indicates customer’s energy usage Measures energy FROM FPL – “-” or “NEG” screen - “excess energy” to FPL NOTE: excess energy is the energy produced over and above what the home or business uses at that time and is fed back into the electric grid. It is NOT the total generation from the array. Total energy from array is shown on customers inverter. – Third screen for demand if needed – Excess energy remaining at the end of year is credited to bill at COG-1 rate 11

Renewable energy systems should not be turned on until the letter is received from FPL that application process is complete. (except for testing and inspection) Metering for Net Metering • Meter is installed after interconnection paperwork is complete • AMI meters are being developed for bi-directional applications – They are not being used at this time 12

The bi-directional meter replaces a standard meter in a standard meter base. “BC” type meter (net metering) Bidirectional Meter 13

Bi-directional meters are available for transformer rated meter installations. “N” type meter (net metering) Bidirectional Meter 14

The most cost effective installation offsets on-site usage with all renewable energy produced. Customer Billing • Customer always pays monthly customer charge for applicable rate even if zero consumption for the month • Customer “bank” credited on their bill at the end of each calendar year at “as available” rate (COG-1) • Approximate values: (varies with region) – – 15 The COG-1 rate paid 2. 9 cents per k. Wh for 2011 The COG-1 rate paid 3 cents per k. Wh for 2010 The COG-1 rate paid 3. 5 cents per k. Wh for 2009 The COG-1 rate paid cents per k. Wh for 2008

FPL provides several methods for customers to get information on interconnecting a renewable energy source. Customer Resources • Web sites • Net Metering • PV Rebates • E-mail • Phone • Fax 16

www. FPL. com/netmetering 17

Guidelines 18

FAQs 19

Sources of Information • www. FPL. com/netmetering – Agreements, Application, instructions • www. FPL. com/solarrebates – Solar reservation information – Link to net metering • Email netmetering@fpl. com • Phone (305) 552 -3043 • Fax (305) 552 -2275 20

Questions 21