State Senator Owen H. Johnson (4th Senate District, Babylon), Chairman of the Finance Committee, announced that the State Senate has passed his legislation (S.7171-B) to allow net energy metering for non-residential solar electric generating systems. The bill would allow non-residential solar electric generators to net meter systems up to either 2MW or peak load, whichever is less. It would also increase the size of farm waste electric systems that can be net metered from 400 kW to 1MW or peak load, whichever is less. Additionally, the legislation increases the size of a residential solar electric system that could be net metered to 25 kW, up from 10 kW.
“New York’s current restrictive net metering law has been an impediment to the widespread use of solar technologies and that’s unfortunate on many levels,” said Senator Johnson. “This legislation will promote greater use of solar energy and, in doing so, move us further toward our goal of increasing the proportion of renewable electricity consumers use to 25 percent by the year 2013. Greater use of solar technology reduces stress on New York’s electric grid and also has a positive impact on our environment by reducing greenhouse gas emissions.”
Senator Johnson explained that net metering allows a utility customer with an on-site electric generating system to send any excess power that they generate back to the utility grid, receiving an equal credit against their own usage. Under net metering, customers are credited for the excess energy they produce at the retail rate, and the credits can be rolled over from month to month. New York State law currently allows net metering for solar and wind systems on residential properties, and farm waste and wind systems on agricultural properties. Senator Johnson’s bill would enable commercial customers to reap benefits from solar energy that are similar to those now enjoyed by residential customers.
In addition to the positive environmental impacts noted, greater use of solar technologies also benefits the economy. It has been estimated that every 2MW of installed solar energy supports 16 local jobs.
If enacted, Senator Johnson’s commercial net metering legislation would build upon other laws he has sponsored to encourage the use of alternative sources of energy, particularly solar energy. In 2005, the Senator sponsored legislation -- now law -- that exempts the sale and installation of solar energy systems equipment from state sales tax and gives municipalities the option of granting the local exemption. Another law authored by the Senator that same year broadened the existing solar electric generating equipment personal income tax credit to also include equipment utilizing solar radiation to provide heating, cooling and/or hot water. The law also raised the maximum allowable credit.
Senator Johnson’s Commercial Net Metering bill passed the Senate on May 14, 2008. It must be approved by the Assembly prior to being sent to the Governor for his consideration. Once signed, the bill would take effect immediately.
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