Net Metering" is the metering of electricity consumed from the utility grid and conversely, exported to the grid by a home or business that has its own generator, such as a wind turbine. Under true Net Metering, electricity produced by the wind turbine that is not consumed flows out to the grid, effectively turning the meter backwards, and effectively banking the electricity until it is needed by the customer. This provides the customer with full retail value for all the electricity produced by the wind turbine. Unfortunately, not all jurisdictions support full net metering.

The standard kilowatt-hour meter typically used in residential homes will measure the flow of electricity in both directions, and is used in net metering in many States, but Measurement Canada has not yet approved using these meters for net metering purposes. Thus, in Canada, in areas which support net metering, typically a new meter is installed with 2 registers to measure flow in both directions. The net amount consumed or exported is then calculated from the difference between the 2 registers.

Wind energy is an intermittent resource and customers may not be using the power as it is being generated. Net metering allows them to effectively store that energy without installing a battery system. This directly affects the economics and pay-back period for the generation equipment.

There are many areas that support some form of net metering, with different rules applied in different areas.

The American Wind Energy Association (www.awea.org) states that currently, 30 states require all utilities regulated at the state level to offer net metering for small wind systems. In recent years many states have enacted net metering laws legislatively, including California, Connecticut, Delaware, Massachusetts, Montana, Nevada, New Hampshire, New Jersey, Ohio, Oregon, Vermont, Virginia, and Washington. More states have proposed net metering programs. (Source AWEA)

Across Canada there is an assortment of support for net metering implemented by various utilities such as BC Hydro, Enmax, Epcor, Manitoba Hydro, Ontario Hydro One, Nova Scotia Power and many more? The Canadian Wind Energy Association (www.canwea.org) indicates at least seven provincial energy departments are examining the issue of net metering and five already advocate it or are considering making it mandatory. Prince Edward Island's Renewable Energy Act requires utilities to allow net metering. Alberta is currently putting a discussion paper together with the intention of putting some form of policy in place. In February of 2005, the Ontario government put forward a proposed regulation supporting net metering.