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Incentives/Policies for Renewables & Efficiency

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City of New Orleans - Net Metering   

Last DSIRE Review: 08/01/2012
Program Overview:
State: Louisiana
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Small Hydroelectric, Fuel Cells using Renewable Fuels, Microturbines
Applicable Sectors: Commercial, Residential, Agricultural
Applicable Utilities:Entergy New Orleans
System Capacity Limit:300 kW for commercial and agricultural; 25 kW for residential
Aggregate Capacity Limit:No limit specified
Net Excess Generation:Credited to customer's next bill at retail rate; carries over indefinitely
REC Ownership:Not addressed
Meter Aggregation:Not addressed
Authority 1:
Date Enacted:
Date Effective:
New Orleans City Council Resolution R-07-132
Authority 2:
Date Enacted:
Date Effective:
New Orleans City Council Resolution R-07-221
Authority 3:
Date Enacted:
Date Effective:
New Orleans City Council Resolution R-09-484

In May 2007, the New Orleans City Council adopted net-metering rules that are similar to rules adopted by the Louisiana Public Service Commission (PSC) in November 2005. The City Council's rules require Entergy New Orleans, an investor-owned utility regulated by the city, to offer net metering to customers with systems that generate electricity using solar energy, wind energy, hydropower, geothermal or biomass resources. Fuel cells and microturbines that generate electricity entirely derived from eligible renewable resources are also eligible. The City Council's rules apply to residential facilities with a maximum capacity of 25 kilowatts (kW), and to commercial and agricultural systems with a maximum capacity of 300 kW. In June 2008, Louisiana SB 359 increased the maximum capacity of commercial and agricultural systems to 300 kW. In September 2009, the New Orleans City Council formally adopted this change and it is now effective for customers of Entergy New Orleans. (These limits and other details are specified in Louisiana’s net-metering law, which applies to all utilities in the state.) Applications and other relevant information are located on the Entergy Net Metering website.

Utilities must provide customer-generators with a meter capable of measuring the flow of electricity in both directions, or, if the existing meter is incapable of registering bi-directional electricity flow, an additional meter or meters capable of registering bi-directional electricity flow. Utilities must pay for the cost of the meter itself, but utilities may assess a “one-time customer charge” to cover the installation costs. The “customer charge” may include the cost of a mandatory accuracy test of the customer's meter or meters, performed by the utility. Net metering customers are required to have a manual disconnect located on the outside of their building and accessible to Entergy New Orleans 24 hours a day.

Customers must pay for “interconnection costs,” which are defined as “the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the [utility] directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations” with a net-metered system, “to the extent the costs are in excess of the corresponding costs which the [utility] would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources.” In addition, the City Council may authorize the utility to assess a customer “a greater fee or customer charge, of any type,” if the utility's “direct costs of interconnection and administration of net metering outweigh the distribution system, environmental and public policy benefits of allocating the costs among the ... utility’s entire customer base.”

Net excess generation (NEG) is credited at the utility's retail rate and carried over to the customer’s next bill indefinitely. For the final month in which the customer takes service from the utility, the utility will pay the customer for the balance of any credit at the utility’s avoided-cost rate.

Customers must notify the utility at least 90 days prior to the date of interconnection. The utility must use a standard interconnection agreement approved by the City Council. Systems must meet all safety and performance standards established by local and national electric codes and performance standards, including the NEC, IEEE, UL, NESC and any other relevant codes specified by the City Council. An external disconnect switch is required.

  Kelley Meehan
City Council Utilities Regulatory Office
Room 6E07 – City Hall
1300 Perdido St.
New Orleans, LA 70112
Phone: (504) 658-1110
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

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