How does Potomac Electric Power Company (Pepco) net metering work?

Pepco customers who generate their own electricity will receive bill credits for any excess power generated. Using a special net-capable meter, Pepco measures the difference between energy you use from the grid and any power generated from your solar panel system. If your panels generate more electricity than you use that month, the excess is carried over onto your next month’s bill as credits. You may generate more energy than you use in a year.

Where does Pepco offer net metering?

Pepco offers net metering throughout its entire service territory, which includes serves customers in the District of Columbia and in parts of Montgomery and Prince George’s Counties in Maryland. However, in some areas Pepco may not have an open circuit, which makes interconnection to the grid for solar impossible.

What are Pepco’s rates and prices for net metering?

Pepco’s rates and prices for net metering will remain the same as they were before if you remain on the same electricity rate structure. Your electricity rate structure depends on what type of facility you are powering (examples are residential, apartment building, or commercial building). The prices for residential customers are listed in the table below.

Although prices remain the same, the amount you owe on your bill will change depending on how much electricity your panels are producing. So, if your panels produce more electricity than you use you will get credited back with the full value of that kWh.

Net metering is available for residential and smaller commercial interconnection projects. Recently, new programs have also become available for community net metering and aggregated net energy metering in Maryland.

What is Pepco’s net metering cap?

Maryland

Pepco is under Maryland’s net metering policy, which has a cap on the amount of solar that can subscribe to net metering. As of 2016 net metering is available statewide until the aggregate capacity of net-metered systems reaches 1,500 MW (megawatts). 1,500 MW is about equal to 10% of Maryland’sthe peak demand for electricity in 2014. Pepco also has limits on the size of individual Individual systems in Maryland: systems are cappedalso have a cap set at 2 MW and are additionally restrictedlimited to meeting 200% of baseline annual customer energy use.

NOTE: In June 2016 the Maryland Public Service Commission voted to adopt new regulations, so keep an eye out for a possible new net metering cap. Find up-to-date information at the Database of State Incentives for Renewables and Efficiency (DSIRE®).

Washington, D.C.

In DC there is no aggregate capacity limit for the amount of solar that can subscribe to net metering. There are individual system capacity limits, however. Residential and commercial customers are limited to 1 MW. The limit is 5 MW for community renewable energy facilities.

Is Pepco net metering the best in Maryland?

There are four major electrical utility suppliers of electricity in Maryland, two of which are not affiliated with Pepco: Baltimore Gas and Electric (BGE), which is a subsidiary of Constellation Energy, and Potomac Edison Company, which is a subsidiary of First Energy. They both have a virtually identical net metering policy in terms of net excess generation. Customers also receive money for excess credits at the end of the year, like Pepco. The only difference between Pepco and these other suppliers is how much you will pay for electricity on your rate schedule, which can vary multiple times a year.

What will happen to my Pepco net metering bill credits?

Washington, D.C.

If you produce more electricity than you use in a month, then your next month’s bill will be credited with your excess energy. If your system is under 100 kW then you will be credited at the full retail rate. If you system is over 100 kW you will be credited at the generation rate. These credits never expire, and they may be used in winter months when you are producing less energy.

Maryland

Like DC, if you produce more electricity than you use in a month then you will be credited on your next month’s bill. This excess energy is carried over at the retail rate for the excess kilowatt hours produced. These excess credits can make up for months when your solar panels are producing less energy, which may happen in the winter months depending on your energy use and the size of your system.

Does Pepco offer other solar incentives?

Pepco doesn’t offer financial incentives specifically for solar but has many other efficiency rebates and incentives programs in Maryland, including a Peak Energy Savings Credit. When demand for electricity rises in the summer Pepco designates some days “Peak Savings Days".

Peak Savings Days typically occur between June and September noon to 8:00 pm and last a couple of hours. During these hours of peak energy use you can receive a credit of $1.25 off your bill for every kWh you reduce your energy below your baseline (average of the three days with your highest energy use during the prior 30-day period).

There are no incentives for solar in DC, but Pepco does offer their new Energy Wise Rewards program to customers in DC. The program improves energy efficiency and reduces strain on the electric grid by focusing on peak energy use periods. Once you enroll Pepco will connect an indoor Energy Wise Rewards thermostat or outdoor switch. Then, on selected Peak Savings Days Pepco will automatically cycle your air conditioner to help balance demand for electricity. “Cycling” just means that your air conditioner will be put into conservation mode. You will be credited on your bill depending on what cycling level you choose.

Both Maryland and Washington, D.C. have Solar Renewable Energy Certificate (SREC) programs, which are a major financial incentive. For every 1,000 kWh of electricity your system produces, you receive one SREC, which you can sell for additional income.

Pepco’s solar interconnection policies and costs

You will have to apply for net metering with Pepco using Pepco’s online Net Metering (NEM) application. First, your contractor will log on to the online application portal to complete the application and upload supporting documents. Then you will log on, review the application, and agree to terms and conditions. The system sends the contractor an invoice for the application fee and the application proceeds through the approval steps. Pepco will then issue an Authorization to Install. This online portal helps Pepco process applications more quickly. For more information on interconnection policies visit the portal here

Connection fees for DC and Maryland can be seen in the tables below:

District of Columbia

Maryland