Quick question for the group - PPL Electric in Pennsylvania does their net metering reconciliation in April each year. My client has about 890 kWh of excess credits accumulated from last summer. PPL is saying they only pay avoided cost rate (about $0.035/kWh) for the excess at reconciliation, not the full retail rate they credited during the year. Is this standard practice or should I challenge this?
PPL Net Metering Annual Reconciliation Question
Sylvia, that sounds right for Pennsylvania. Here in Rhode Island with National Grid, we have the same setup - retail rate credits during the year, then any remaining excess gets paid out at wholesale/avoided cost at the annual reconciliation. It's not great for customers but it's pretty standard across most states.
Thanks Laura. Yeah, I figured that was probably the case but wanted to double-check. The $0.035 vs $0.12 retail rate is a big difference - only getting paid $31 instead of $107 for that excess generation. I'll make sure future solar clients understand this reconciliation structure upfront.