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Arkansas

Arkansas

Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 06/22/2012
Program Overview:
State: Arkansas
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Microturbines using Renewable Fuels, Small Hydroelectric, Fuel Cells using Renewable Fuels, Microturbines
Applicable Sectors: Commercial, Industrial, Residential, General Public/Consumer, Nonprofit, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
Applicable Utilities:Investor owned utilities and electric cooperatives
System Capacity Limit:300 kW for non-residential; 25 kW for residential
Aggregate Capacity Limit:No limit specified
Net Excess Generation:Credited to customer's next bill at retail rate; granted to utility at end of 12-month billing cycle
REC Ownership:Customer owns RECs
Meter Aggregation:Not addressed
Authority 1:
Date Enacted:
Date Effective:
Arkansas Code ยง 23-18-603 et seq.
4/19/2001 (subsequently amended)
10/01/2001
Authority 2:
Date Enacted:
AR PSC Order No. 8, Docket 06-105-U
11/27/2007
Authority 3:
Arkansas Net Metering Rules
Authority 4:
Date Enacted:
AR PSC Order No. 6, Docket No. 12-001-R
06/15/2012
Summary:

In April 2001, Arkansas enacted legislation (HB 2325) directing the Arkansas Public Service Commission (PSC) to establish net-metering rules for certain renewable-energy systems.* The PSC approved final rules for net metering in July 2002. Subsequent legislation enacted in April 2007 (HB 2334) expanded the availability of net metering; increased the capacity limit for non-residential systems from 100 kilowatts (kW) to 300 kW; improved the law's provision for the carryover of net excess generation (NEG); and clarified the ownership of renewable-energy credits (RECs). In 2012, the PSC amended the net metering rules to exempt local, state and federal government entities and agencies from previously required indemnity agreements (Docket 12-001-R Order No. 6). 

Residential renewable-energy systems up to 25 kW in capacity and non-residential systems up to 300 kW are eligible for net metering. Eligible technologies include solar, wind, hydroelectric, geothermal and biomass systems, as well as fuel cells and microturbines using renewable fuels. There is no limit specified for the aggregate capacity of all net-metered systems.

Customers carry over any NEG to the following monthly bill at the utility's retail rate. Any NEG remaining at the end of an annual billing cycle is granted to the utility. Customers own the RECs associated with their systems.

The PSC is authorized to allow utilities to assess net-metered customers "a greater fee or charge of any type, if the electric utility's direct costs of interconnection and administration of net metering outweigh the distribution system, environmental, and public policy benefits of allocating the costs among the electric utility's entire customer base."


* Municipal utilities do not fall under the PSC's jurisdiction and are not required to follow the PSC's rules. The PSC regulates investor-owned and cooperative utilities.


 
Contact:
  JD Lowery
Arkansas Department of Economic Development
Arkansas Energy Office
900 W. Capitol, Suite 400
Little Rock, AR 72201
Phone: (501) 682-7678
E-Mail: jlowery@arkansasedc.com
Web Site: http://www.arkansasenergy.org
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

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