In September 2019, the Louisiana Public Service Commission approved changes to the state’s rules for distributed generation facilities. (For a copy of the LPSC order, please click here.)
The LPSC’s rules for distributed generation and net metering were initially approved in 2005. They were designed to incent distributed generation, particularly solar, by allowing customers to reduce their monthly electric bill with energy generated by a qualifying distributed generation system on their property. The most common example is a residential customer who installs rooftop solar panels to generate electricity for use in their home.
The LPSC’s rules apply to residential systems up to 25 kilowatts and commercial systems up to 300 kilowatts who do not have any other generator connected to the grid. Customers who have generators that do not meet these qualifications may want to explore this link.
Under the LPSC rules that were effective January 1, 2020:
Eligible distributed generation facilities installed no later than Dec. 31, 2019
- Customers who installed a qualifying distributed generation facility by Dec. 31, 2019, were grandfathered under the previous net metering structure for the next 15 years.
- During each billing month, these customers will pay the applicable retail rate for the difference between the electricity (in kWh) purchased from the utility and the electricity (in kWh) supplied to the grid.
- If a customer supplies more electricity than is purchased in a given month, the customer receives the minimum bill and the excess kWhs are applied to the following month's bill.
- See Rider Schedule NM for more information on billing.
- The grandfathering period for all eligible systems will continue until Dec. 31, 2034, even if the property is sold. However, if a material modification is made to a distributed generation facility, the customer must submit a new interconnection request and will no longer qualify as a grandfathered system.
- After Dec. 31, 2034, owners of grandfathered systems will be billed under Rider Schedule DG.
Eligible distributed generation facilities installed after Dec. 31, 2019
- Owners of qualifying distributed generation facilities installed after Dec. 31, 2019, will be billed under Rider Schedule DG, which applies a crediting mechanism known as two-channel billing.
- During each billing month, customers will pay the applicable retail rate for all electricity (in kWh) purchased from the utility and will receive the full retail value for all electricity that they produce and use behind the meter at their home or business. Any surplus energy not used by the customer and sent back to the grid will be credited on the customer's bill at the current Avoided Cost rate of approximately $0.0620 beginning April 1, 2023.
- The customer's monthly bill can be reduced to the fixed Customer Charge or minimum bill, but not less than that amount; any additional bill credit remaining will be carried over to the following month's bill.
- See Rider Schedule DG for more information on billing.
These rules do not impact customers of Entergy New Orleans.
For information on interconnection process and requirements, visit here.
If you are a developer seeking information about the Louisiana Public Service Commission’s community distributed generation rules, please email us.