incentives
State Incentives for Renewable Energy Usage |
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| State1 | State Solar Legislator Score2 | Homeowners Association Legislation3 | Renewable Portfolio Standard (RPS)4 | Grid Tie Systems- Net Metering Incentives5 | ||
| Limit on Size of System Size (Residential) | Treatment of Net Excess | Utilities Involved | ||||
| Alabama | * | None | ||||
| Alaska | * | None | ||||
| Arizona | *** | Invalidates restrictions on the installation or use of solar energy devices. | Mandatory- 15% by 2025 | 125% of customers total connected electric load | Credited to customer’s next bill at utility’s retail rate with accounts generally reconciled annually at the avoided-cost rate. | All investor-owned and cooperative utilities. |
| Arkansas | * | None | 25kW for residential system | Credited at retail rate | All utilities | |
| California | **** | Invalidates any instrument affecting the installation or use of solar energy systems. |
Mandatory- 20% by 2010 |
1 MW (10 MW for as many as three biogas digesters) | Credited to customer’s next bill; granted to utility at end of 12-month billing cycle. | All utilities (solar & wind); IOUs (biogas and fuel cells). Publicily owned electric utilites with more than 750,000 customers, which aslo provid water are exempt from net-metering. |
| Colorado | ***** | Voids unreasonable restrictions on solar energy devices. |
Mandatory- 20% by 2020 (at least 4% from solar) | IOUs: 2 MW. Electric cooperatives and municipal utilities: 10 kW for residential; 25 kW for commercial or industrial. | Credited to customer’s next bill; IOUs: utility pays customers at end of calendar year for excess kWh credits at the average hourly incremental cost for that year. | All IOUs and co-ops; munis with more than 5,000 customers. |
| Connecticut | ***** | Mandatory- 27% by 2020 | 2 MW | Credited to customer’s next bill at retail rate; generally purchased by utility at avoided-cost rate at end of 12-month billing cycle. | Investor-owned utilites. | |
| Delaware | *** | Mandatory- 20% by 2019 (at least 2% from solar) | 25 kW | Credited to customer’s next bill at retail rate: at end of 12-month period, any remaining NEG is granted at the utility’s avoided-cost rate to Delaware’s Green Energy Fund. | All utilities (applies to electirc cooperatives only if they opt to complee outside their service territories) | |
| Florida | *** | Expressly prohibits ordinances by governing bodies which prohibit or the installation of solar collectors and other renewable energy. | State Goal- must develop a RPS by Feb 1 2009. | 2 MW | Credited to customer’s net bill at retail rate; purchased by utility at avoided-cost rate at end of 12-month billing cycle. | Investor Owned |
| Georgia | **** | None | 10 kW | Credited to customers next bill; granted to utility at end of 12-month billing cycle. | All Utilities | |
| Hawaii | ***** | Voids any provision in a lease, instrument or contract that prohibits a person from installing a solar energy device on certain dwellings. | Mandatory- 20% by 2020 | HECO, MECO and HELCO: 100 kW, KIUC: 50 kW | Credited to customer’s next bill; granted to utility at end of 12-month billing cycle. | All Utilities |
| Idaho | ** | None | Idaho does not have a statewide net-metering rule, but each of the states public utility companies have net metering tariffs. | Varies | Idaho Power | |
| Illinois | **** | Mandatory- 25% by 2025 | 40 kW | Credited to customer’s net bill at utility’s retail rate; granted to utility at end of 12-month billing cycle. | Investor-owned utilities, alternative retail electric suppliers | |
| Indiana | ** | Prohibits a governmental unit from adopting an ordinance that prohibits or unreasonably restricts the use of solar hot water or solar space heating systems. | None | 10 kW | Credited to customer’s next bill | Investor-owned utilities |
| Iowa | ** | Grants municipalities the right to issue ordinances prohibiting subdivisions from including restrictive covenants that limit the use of solar collectors.* | Mandatory- 105 MW | 500 kW | Credited to Customer’s next bill | Investor-owned utilities (MidAmerican Energy, Intersate Power and Light) |
| Kansas | * | None | ||||
| Kentucky | ** | None | 30 kW | Credited to customer’s next bill (no expiration) | Investor-owned utilities, rural electric cooperatives | |
| Louisiana | ***** | None | 25 kW | Credited to customer’s next bill at utilities retail rate; carried over indefinitely. | All utilities | |
| Maine | *** | Mandatory- 30% by 2000 | 100 kW | Credited to customer’s net bill; granted to utility at end of 12-mnth billing cycle | All utilities | |
| Maryland | **** | Mandatory- 20% by 2022 (at least 2% from solar) | 2 MW | Credited at Retail rate and carried over to customer’s next bill; granted to utility at end of 12-month period with no compensation for the customer. | All utilities | |
| Massachusetts | ***** | Voids any provision in any real property instrument that purports to forbid or unreasonably restrict the installation or use of a solar energy system. | Mandatory- 15% new by 2020 with 1% increase each subsequent year | Class I- 60 kW Class II- 1 MW Class III- 2 MW | Various per class (see website for more detail) | Investor-owned utilities |
| Michigan | **** | Mandatory- 10% by 2015 | 20 kW | Carried over at the power supply (I.e. wholesale) component of the retail rate each billing period; no provision for annual true-up, so rollover may be indefinite. | All rate-regulated utilities and alternative electric suppliers | |
| Minnesota | ***** | Mandatory- 25% by 2025; Xcel Energy 30% by 2020 | 40 kW | Customer receives a check for NEG at the end of each month, calculated at the the utility’s retail rate. | All utilities | |
| Mississippi | * | None | ||||
| Missouri | * | Mandatory- 15% by 2021 | 100 kW | Credited to customer’s next bill at utility’s avoided-cost rate; granted to utility at end of 12-month period. | All utilities | |
| Montana | *** | Mandatory- 15% by 2015 | 50 kW | Credited to customer’s next bill; granted to utility at end of 12-month billing cycle | Investor Owned Utilities | |
| Nebraska | * | None | 25 kW | Carried over monthly at varying rates depending on season and technology; accumulated NEG credits paid to customer at the end of the calendar year. | Nebraska Public Power District | |
| Nevada | **** | Voids any covenant, restriction in a deed or contract that unreasonably restricts obtaining solar energy. | Mandatory- 20% by 2015 (at least 5% from solar) | 1 MW (utilities may impose fees on systems greater than 100 kW) | Carried over to customer’s next bill indefinitely as a kilowatt-hour credit. | Investor-owned utilities |
| New Hampshire | *** | Mandatory- 25% by 2025 | 100 kW | Credited to Customer’s next bill | All utilities | |
| New Jersey | ***** | Mandatory- 22.5% by 2021 (at least 2% from solar) | 2 MW | NEG credited to customer’s next ill at retail rate with next excess purchased by the utility at the avoided cost rate at the end of an annualized period. | Electric distribution companies (does not apply to municipal utilities or electric co-ops) | |
| New Mexico | **** | Mandatory- 20% by 2020 | 80 MW | Credited to customer’s next bill at utility’s avoided-cost rate or purchased by utility at avoided-cost rate monthly. | Investor-owned utilities and electric cooperatives | |
| New York | ***** | Mandatory-25% by 2013 | Solar: 25 kW Wind: 25 kW Biogas: 500 kW | Monthnly NEG credited to customer’s net bill at utilities retail rate with accounts generally reconciled annually at the avoided-cost rate; annual NEG compensation for non-residential customers is not addressed. | All major investor-owned utilities | |
| North Carolina | ***** | Passed legislation that limits HOA’s restrictions on solar panels. | Mandatory- 12.5% by 2021 | 20 kW | Credited to customers’ next bill at applicable time-of-use rate of less; granted to utility (annually) at beginning of each summer. | Investor-owned utilities (Progress Energy, Duke Energy, Dominion North Carolina Power) |
| North Dakota | *** | State Goal- 10% by 2015 | 100 kW | Purchased by utility at avoided-cost rate | Investor Owned Utilites | |
| Ohio | *** | Mandatory- 25% by 2025 (12.5% from renewables) | No limit | Credited at utility’s unbundled generation rate to customers net bill; customer may request refund of NEG credits accumulated over a 12-month period. | All electric distribution utilities and competitive retail electric service providers | |
| Oklahoma | ** | None | 100 kW or 25,000 kWh/year (whichever is less) | Granted to utility monthly or credited to customer’s net bill (varies by utility) | Investor-owned utilities, electric cooperatives regulated by the Oklahoma Corporation Commission | |
| Oregon | **** | Mandatory- 25% by 2025 | 25 kW | Various by Utility (check website*) | All utilities (except Idaho Power) | |
| Pennsylvania | *** | Mandatory- 18% by 2020 (at lease 0.5% from solar) | 50 kW | Credited to customer’s next bill at retail rate; customer receives compensation for remaining NEG at “price-to compare” at year-end. | Investor-owned utilities | |
| Rhode Island | ***** | Mandatory- 16% by 2020 | Various by customer (see website*) | Credited at a rate slightly less than utility’s retail rate and carried forward for a 12-month period. NEG remaining at the end of a 12-month period is transferred to the Rhode Island Renewable Energy Low-Income Fund. | National Grid | |
| South Carolina | *** | None | No state litigation on this, but there is Utility Company Participation (see website* for more detail) | Various by Utility Company (see website* for more detail) | Duke Energy, Progress Energy, SCE&G | |
| South Dakota | * | State Goal- 10% by 2015 | ||||
| Tennessee | * | None | ||||
| Texas | ** | Mandatory- 5,880 MW by 2015 | 20 kW | Credited monthly to customer’s net bill at avoided cost (Fuel Rate or at the Green Power Rate depending on customer’s rate schedule). | Austin Energy | |
| Utah | ** | Grants legislative bodies the right to refuse any plat or subdivision plan if deed restriction, covenants or other agreements prohibits designed solar collectors or other renewable resource devices. | State Goal- 20% by 2025 | 25 kW | Credited to customer’s next bill at utility’s avoided-cost rate; granted to utility at end of 12-month billing cycle. | Investor-owned utilities and certain electric cooperatives. |
| Vermont | ** | Mandatory- 25% by 2025 | 250 kW | Credited to customer’s next bill at utility’s retail rate; granted to utility at end of 12-month billing cycle. | All utilties | |
| Virginia | ** | State Goal- 12% of 2007 sales by 2022 | 500 kW | Credited to following month at utility’s retail rate; either granted to utility annually or credited to following month. | Investor-owned utilities, electric cooperatives | |
| Washington | *** | Mandatory- 15% by 2020 | 100 kW | Credited to customer’s next bill; granted to utility at end of 12-month billing cycle. | All utilities | |
| West Virginia | * | None | 25 kW | Credited to customer’s next bill at utility’s retail rate. | All utilties | |
| Wisconsin | **** | Voids any restrictions on plated land that prevent or unduly restrict the construction and operation of solar energy systems or wind enery systems. | Mandatory- 10% by 2015 | 20 kW | Varies by utility. Generally credited at retail rate for renewables; generally credited at avoided cost for non-renewables. | Investor-owned utilities, municipal utilities |
| Wyoming | * | None | 25 kW | Net excess generation (NEG) treated as a kWh credit or other compensation on the following month’s bill; purchased by utility at avoided-cost rate at end of 12-month billing cycle. | Investor-owned utilities, electric cooperatives, and irrigation districts | |
| Key | ||
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| No information found |
Footnotes:
1) State: Click on the State to be directed to the listing of that state’s Home Energy Rater. To qualify for an Energy Star label, a house must be independently verified by a home energy verification organization. This can be done through either:
- Home Energy Rating System (HERS) rating or
- ENERGY STAR- approved Builder Option Package (BOP)
Benefits of an Energy Star label will make your home eligible for Energy Efficiency Mortgages (EEMs) and other governmental financing. HERS Raters are authorized by the Department of Energy and the National Mortgage Industry to certify both new and existing homes, which are able to score an 86 on the HERS scale.
Another option to using a Home Energy Rater is to contact your local utility company, as many utility companies have preferred contractors who perform energy audits for free. These contractors are not certified through any specific program or training course, but are usually simply contractors that utility companies know and trust to audit for energy efficiencies.
2) State Solar Legislation Score: This state score is found on the website Solar Power Rocks - www.solarpowerrocks.com. Solar Power Rebates, Incentives, and Tax Credits are taken into consideration to derive this solar legislator score.
3) Homeowners Association Legislation: Many states have taken action to prevent Home Owners Associations from putting restrictions on houses in terms of solar energy usage. For further information on State Specific Homeowner Association Legislation, and a guide on how to utilize solar panels no matter what state you live in, click here.
4) Renewable Portfolio Standard (RPS): Many states are now requiring a certain percentage of a utilities power plant capacity or generation to come from renewable resources by a given date. This is known as a Renewable Portfolio Standard.
5) Grid Tie Systems - Net Metering Incentives: Grid-tie systems generate electricity, sending this energy back to your utility company’s power grid. Net Metering is an electricity policy for consumers who own, generally small, renewable energy facilities such as wind, solar power, or home fuel cells. With net metering the consumer receives credit for at least a portion of the electricity that they generate. To find more state specific data, including availability of net metering, if and how long banked credits can be kept, how much credits are worth (retail/wholesale), click here.