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In: Accounting

For florida list the types of utilities that are/are not required to offer a net metering...

For florida list the types of utilities that are/are not required to offer a net metering tariff also explain the accounting process for net excess generation and how financial compensation, if any, is calculated.

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Expert Solution

Florida Power and Light’s net metering program allows homeowners to install and connect solar energy systems to the grid and receive credit for the energy produced by their systems. FPL allows customers to install systems meeting up to 115 percent of their current energy need. Customers’ credits will be applied to their energy bill, and FPL and will provide monetary compensation for any extra credits not used over the course of the year in January

Florida Power and Light offers net metering to customers across its entire service area, which covers most of Florida, excluding the Panhandle. The service territory includes parts of:

  • Clearwater
  • Daytona Beach
  • Fort Lauderdale
  • Fort Myers
  • Gainesville
  • Kissimmee
  • Lake City
  • Lakeland
  • Melbourne
  • Miami
  • Naples
  • Ocala
  • Orlando
  • Port St. Lucie
  • St. Augustine
  • St. Petersburg
  • Tampa
  • West Palm Beach

FPL’s net metering program differs based on the size of the solar system installed, as explained in the table below. Florida law requires net metering customers are compensated at the retail rate, so FPL customers are credited for the energy produced by their solar systems at their electricity rate. As of June 2017, this was 10.8 cents/kWh for residential customers using less than 1,000 kWh each month. Home solar installations are typically Tier 1.

The duration and intensity of sunlight differs across the year. As a result, a solar system that is designed to meet your total energy needs over the course of a year will overproduce electricity in some months and underproduce in others.

In months when your solar system produces more energy than you need to use, the energy will be sold back to FPL’s grid in exchange for net metering credits. These credits can be used for a future energy bill in the same calendar year. Bill credits do not carry over across calendar years because of Florida’s net metering policies. If you have credits at the end of the year, a cash credit will be offered on your January bill.

nterconnection is the final step in solar installation, and is the act of connecting your solar panels to the grid. This is regulated at the state level and by utility. To qualify for interconnection to Florida Power and Light’s grid customers must follow both state rules and FPL rules, including:

  • Compliance with the National Electrical Code
  • The system (unless it has a battery backup) must shut down in the case of an FPL grid outage to prevent feedback into the grid.
  • Systems using battery storage must have a coupled DC inverter.
  • Electrical and mechanical inspection approved by the local inspector, including details regarding the location and construction of the system.
  • Systems must either have a U.L. 1741 listed inverter or a visible manual disconnect switch.
  • Systems must have a bi-directional meter installed by FPL.

Customers with systems exceeding 10 kW (typically non-residential) must go through the appropriate application process and interconnection agreement, including an interconnection fee. The interconnection fee will vary depending on the size of your solar panel system.

Customers installing systems over 10 kW also need to provide proof of liability insurance as part of the application process (up $1 million for Tier 2, $2 million for Tier 3.)

Tier 1 < 10kW AC $0
Tier 2 10- 100kW AC $400
Tier 3 100 -2,000kW AC $1,000

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