Net Metering Application and Interconnection F.A.Q.s
- What is net (energy) metering?
Net (energy) metering (NEM) is a crediting process which allows
cooperative members who have installed qualified renewable energy
generation systems (REGS) to receive credit for any electrical energy
they export to the power grid. While NEM is a billing process, there
is also a generation interconnect process, which will be discussed
- What renewable energy generation systems are qualified?
Solar, wind, biomass, fuel cell, closed conduit hydro, or micro combined
heat and power (CHP) up to 30 KW capacity. Biomass has a complicated
definition, but basically is non-hazardous renewable organic waste
byproducts from agriculture, animal and forest industries or vegetation
harvested specifically for biomass energy conversion. See
Public Utilities Article, Maryland Code Annotated, §7-701.
- Who is eligible for net metering?
Any cooperative member who owns or operates, leases and operates or has
contracted with a third party to own or operate a qualified renewable
energy generation system which is located on the member's premises or
- Are there any charges involved in participating in net metering?
There are no charges for participating in net metering itself. Depending
on the size and type of the REGS, there may be charges involved in
installing or upgrading necessary equipment to facilitate the interconnect
of the generation itself. The estimated cost for the equipment is
determined as part of the generation interconnect process. See
"What is Choptank's process for approving net metering?" below.
- How does net metering affect my bill?
Most bills will show two readings: KWH1 for the energy consumed; KWH2 for
excess energy generated back into the power grid. Each month, any energy
shown in the KWH2 block will be subtracted from the energy shown in the
KWH1 block, the difference being used to calculate the Distribution and
Supplier energy charges for the month. If the energy shown in KWH2
(excess generation) block is greater than that shown in the KWH1
(consumption) block, you will be billed for zero energy (KWH) usage and
the difference will be shown in a line below the bar graph box labeled
Sample bill showing Consumption greater than Generation
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Sample bill showing Generation greater than Consumption
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This "banked" energy will be carried over to the
next month's bill and netted against consumption in that month. If there
is still excess energy remaining or generated in the follow on month, it
again will be "banked" for another month and so forth until it is
consumed or until the "April payout" occurs. Monthly payout of "banked
generation" is also an option. See "Can I be paid for my excess energy
- What is the "April payout?"
Any "banked" energy remaining on your bill in April will be cashed out
and either credited to your bill in a dollar amount or forwarded to
you by check. If you have another account with Choptank, you may
request the dollar amount be transferred to that account to offset
- What is the cash (purchase) value of the energy in the April payout?
The value of the "banked" energy effectively purchased by the
cooperative in the April payout is the Generation rate of the
Supplier Charge for the rate class under which the REGS is served.
- Can I be paid for my excess energy monthly?
Yes. Members of cooperatives with less than 250,000 members have
the option to elect monthly payout of excess generation. The value
of the energy is the Generation rate of the Supplier Charge for the
rate class under which the REGS is served. This is in contrast to
the "banked generation" energy carryover from month to month (until
April) which has a value equal to the "retail" rate for the rate
class under which the REGS is served. The banked generation
presumably would offset energy consumption in subsequent months,
therefore it would have "retail" value. If a member expects to have
excess generation on an annual basis, then the value of the energy
is the same whether paid monthly or during the April payout.
Therefore a member may wish to be paid monthly. Members requesting
monthly payout usually have the dollar value credited directly to
their bill to offset charges not affected by NEM.
See "Can I get to a point where I don't have to pay an electric bill?" below.
- Why can't I keep rolling my "banked generation" remaining in April over to follow on months?
Maryland Law requires utilities to pay members for any excess
generation remaining on April's billing cycle.
- Can I get to a point where I don't have to pay an electric bill?
Possibly, but the economics to achieve this may not be favorable.
NEM only affects the energy (KWH) components of an electric bill.
Some rate classes have charges such as demand (KW) and reactive
energy (RKVAH) that aren't affected by NEM. There are also the
fixed monthly consumer charge, taxes and surcharges. A member can
install a larger sized system than needed to offset expected annual
energy needs (up to 200% baseline usage) and sell the excess energy
to Choptank; however, the value of that energy is the Generation
rate, not the retail value.
- Do I read my own meter?
No. Choptank will read your meter for you at no charge. You can
still read it for your own curiosity, but you will not have to turn
readings into the co-op for billing purposes.
- What will the meter display?
For most members the meter will display two numbers: Register 1
will display the energy consumed; Register 2 will display the excess
energy generated back into the grid. For members' on demand or
reactive energy rates the meter will display other numbers as well.
The cooperative can help you determine what the numbers represent.
- Will Register 2 (excess generation) on Choptank's meter match
the renewable energy generator power output as indicated on its control?
No. The control on the renewable energy generator indicates the
energy output from the REGS. Choptank's meter registers only the
excess generated energy delivered to the power grid. This excess
energy is the net difference between what the REGS generated and
what was consumed on site before being sent to the power grid.
- How large of a REGS can I install?
Maryland law limits the size to 2 MW (2000 KW). Additionally it
can only be sized to generate up to 200% of the site's "baseline
- What is baseline annual usage?
The amount of energy consumed in the preceding 12 months before
the REGS was installed. If there is not 12 months of usage history,
the cooperative will estimate a baseline usage based on similarly
- What is Choptank's process for approving net metering?
The member needs to file a generation interconnect request
application with the cooperative. The application has a block to
check indicating the intended use of the interconnect, e.g. net
metering. There are four levels of application depending on the
size and complexity of the REGS. For most members a Level 1 or 2
application will be sufficient. Link to the applications can be
found below, or they can be mailed or emailed upon request. Level 1
is for "lab certified" systems 10 KW and below. Level 2 applications
are for "lab certified" systems larger than 10 KW. REGS not meeting
Levels 1 or 2 criteria become Level 4 applications. Generally the
REGS vendor/installer will process the application for the member.
(See the bottom of this page for links to applications.)
Assuming there are no problems with the interconnect
application itself, the size or technical feasibility of the REGS,
the cooperative will give tentative approval to install a REGS.
For Levels 2 and 4 applications, there is an additional document
to be signed called the Interconnect Agreement (IA). The IA lists
additional operating requirements specific to the applicant's
REGS. It provides system upgrade cost estimates and completion
time estimates for those upgrades and is sent after the
interconnect application has been determined to be complete.
Members may need to stay in contact with the Cooperative throughout
the process to resolve issues that may arise.
Upon completion of the REGS, the member or vendor/installer on his
behalf, will forward a signed Certificate of Completion (part of
the interconnect application) and electrical inspection (managed by
the county in which the REGS is being built and usually handled by
the electrical contractor) for the installation to the cooperative.
The cooperative may wish to conduct a witness test to verify the
safety and protective controls are functioning properly before
giving final approval to operate the REGS.
The cooperative will need to exchange the member's existing
electric meter with a meter capable of reverse energy registration.
The member should not operate the REGS other than short term testing
until the meter is exchanged. Some meters will register excess
REGS energy as consumption. It typically takes about a week for
the net meter to be installed once the Certificate of Completion is
approved by Choptank.
- How long does the application process take?
It varies depending on the size and complexity of the system. For
Level 1 applications tentative approval is usually given within a
few days. Final approval after the Certificate of Completion is
returned is usually about a week. Level 2 and 4 applications can
take several weeks at each end depending on the thoroughness of the
application and any technical difficulties that arise. The larger
and more complex the system the more likely technical issues will
arise delaying the process.
- What does "lab certified" mean?
The REGS equipment (typically DC to AC inverters for photovoltaic
systems) has been certified by an independent testing laboratory
to meet certain UL and IEEE standards. The specifications for
REGS equipment usually indicate the standards to which they have
been built or comply. Lab certified equipment helps speed the
application process. Choptank's primary concern is that the REGS
will immediately cease interconnect with Choptank's system during
power outages or interruptions. The REGS cannot interfere with the
delivery of power to other members or cause damage to the
- Is there an interconnect application fee?
For Level 1 applications, no. For Level 2, it is $50 + $1/KW. For
Level 4, it is $100 + $2/KW.
- Do I need to contact Choptank before filing an interconnect application?
No, but it is recommended, particularly on larger systems above
50 KW. Technical implications come into play the larger systems
become which may change the economic feasibility of the project.
Interconnect applicants will be required to pay for system upgrades
needed for capacity or voltage regulation issues that arise as a
consequence of the REGS interconnect.
- What is aggregated net metering (ANM)?
Aggregated net metering allows excess energy from the REGS (host)
meter to be applied virtually to other meters through the
cooperative's billing system.
- Who is eligible for ANM?
Member accounts serving 1) agriculture, 2) municipal government,
or 3) non-profit organizations. The accounts need to be under the
same name or entity.
- Do all the aggregated meters need to be on the same premises
or contiguous property to be eligible?
No, only the REGS (host) meter. However, meters/services that are
close enough to be physically aggregated (usually within 800 feet
of one another) will need to be physically aggregated, that is,
combined together behind one meter for aggregation. Only meters
that are too far apart to be physically aggregated will be
- How is the excess energy applied from the host meter to other meters?
Members participating in ANM will need to provide the cooperative
with a list of meters to which the excess energy will be applied
in sequential order (waterfall list), the host meter being the
first. The list can only be changed once per year. There is no
limit to the number of meters under one entity that can be
- What happens if there is still excess generation left after
cascading through the waterfall list?
The energy will become "banked generation" on the host meter
and be used to offset energy consumption in subsequent months
to meters on the waterfall list. Any excess energy remaining on
the host meter in April will be cashed out at the host meter's
- I have an experimental time-of-use (TOU) meter, can I participate in NEM?
At present, Choptanks billing system cannot process TOU rates for
NEM. You can still participate in NEM, however, your rate will need
to revert back to a non-TOU rate.
- What are RECs or SRECs?
The (Solar) Renewable Energy Credits or Certificate is a
certification process by which a government entity certifies that a
particular REGS generated a certain amount of energy. The RECs
become a tradable commodity with market value similar to a stock
certificate. Many states require utilities to obtain a certain
percentage of energy from renewable sources. In lieu of building
their own renewable generation, utilities may purchase RECs. Also,
some individuals or organizations want to participate in renewable
energy sources but can't do so directly for various reasons. By
purchasing RECs these individuals or organizations can participate
indirectly helping to finance REGS elsewhere.
- Who certifies RECs in Maryland?
The Maryland Public Service Commission (PSC). REGS applicants need
to register their systems with the PSC which is done on-line
through their website. Part of the application process will require
a signed Certificate of Completion from Choptank. See
"What is Choptank's process for approving net
metering?" above. This is the only aspect of RECs in which
Choptank is involved.
- Does Choptank purchase RECs?
Not at this time.
- What law or regulations cover net energy metering?
Net metering law can be found in the
Public Utilities Article, Maryland Code Annotated, §7-306. The
regulations governing the law as overseen by the PSC can be found
Code of Maryland Regulations (COMAR) Title 20, subtitle 50, chapter 10.
Generation interconnect regulations can be found in
COMAR Title 20, subtitle 50, chapter 09.
- Who do I need to contact at the co-op?
Call the Choptank Customer Service Center, 1-877-892-0001
and tell the customer service representative you need a net
meter installation and they will transfer you to the
appropriate co-op staff person.
Net Metering Requirements
Interconnected generating equipment utilizing inverters must
be compliant with IEEE 1547 and UL 1741. All interconnected
generating equipment must automatically and immediately cease
interconnection with Choptank upon and during power interruption
By signing the application, the member certifies that the
installed generating equipment meets the preceding requirements
and any other electrical/building code requirements by the
Authority Having Jurisdiction. If installation of generating
equipment requires electric service disconnect, an electrical
inspection will be required prior to service being restored.
Net Metering Tariff
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Net Metering Aggregation Rider
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Level One Interconnection Application ( 238 KB)
Level Two through Level Four Interconnection Application ( 202 KB)
Choptank Electric Cooperative, Inc., P.O. Box 430, Denton MD 21629
Toll Free: 877-892-0001