The New Jersey legislature required net metering in 1999 as part of the Electric Discount and Energy Competition Act. In 2004, net metering provisions were revised by the New Jersey Board of Public Utilities. In 2007, an order by the NJ Board of Public Utilities will result in further changes to net metering rules by mid 2008.

Theoriginal net metering policy applied only to photovoltaics and wind generation, but now the option is available to all "Class I" renewable energy technologies – including solar technologies, wind, fuel cells, geothermal technologies, wave or tidal action, and methane gas from landfills or a biomass facility (provided that the biomass is cultivated and harvested in a sustainable manner).

The new rules increase the maximum capacity for net metered, renewable energy systems to 2MW from 100 kW.

Netexcess generation at the end of the year is compensated at a rate equal to the supplier/provider’s avoided cost of wholesale power.

Customers eligible for net metering own the renewable-energy credits (RECs) associated with the electricity they generate.

• View New Jersey’s Net Metering and Interconnection Standards for Class I Renewable Energy Systems [N.J.A.C. 14:4-9] – effective October 4, 2004
• Complete information on various programs related to on-site renewable energy is available at the New Jersey Clean Energy Program web site

Other Resources:

• Model Net Metering Law for Renewable Energy Technologies – by the Interstate Renewable Energy Council, August 2003
  This model limits net metering to systems 25 kW or less for residential applications and 100 kW or less at commercial sites. The rule would allow first-come first-served net metering until a utility reaches 2 percent of its peak load.
• Summary of Net Metering Programs in the United States – by DSIRE, ongoing updates
• Consumer Guide to Renewable Energy for Your Home or Business – by DOE Office of Power Technologies