Project Economics

Americans Making Power Act Proposes National Net Metering

July 2010, Washington, D.C. - Rep. Jay Inslee (WA) has introduced the Americans Making Power Act, or AMP Act, which would establish a national standard for net metering. The legislation would allow Americans to feed back into the grid excess renewable power they generate through their homes, small businesses and even places of worship. This legislation would also improve reliability of the nation's electric grid by encouraging a more diffuse means of energy production.

“Our new clean energy economy can start right at home.”

—  Rep. Jay Inslee

The AMP Act (HR 5692) addresses two main issues associated with a robust net metering policy; namely the actual net metering standard and a policy component designed to allow for the connection of a renewable energy system to the electric grid, also known as "interconnection." The AMP Act would accomplish this by modifying section 113 of the Public Utility Regulatory Policies Act (PURPA) of 1978. While some 42 states have already adopted some form of net metering and/or interconnection standards, there are many variations in policy and some states have yet to adopt net metering language at all.

The AMP Act would set a minimum in standards and procedures for net-metering including a limit on the size of machine at 2MW, but would allow states to enact their own regulations over and above this minimum. As written, the owner-generator keeps all renewable energy credits generated by the machine. Additionally, the requirement to offer this program does not apply once the utility has reached a total of 6% of its peak load in net-metered projects (or 4% of it's peak by any one qualifying net-metered technology). This is re-calculated every 12 months. Customer-generators will receive a kwh credit on their bill for any excess generation. At the end of 12 months, if there is a net excess of generation, the customer-generator recieves a payment equal to the average wholesale rate for the previous 12-month period per net excess kwh.

“Our new clean energy economy can start right at home,” said Rep. Inslee. “By empowering Americans, this legislation can help build the clean energy economy of the 21st century while saving families money. Imagine getting a credit on your bill from your utility company every month because you generated more power than you use.”

Subscribe to Project Economics