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Net Metering
utility interconnect agreement
Since 1999 Oregon utilities have been required by law to provide net metering for solar, wind, hydro and fuel cells with output of not more than 25,000 watts of peak power output. (Most home systems are 5,000 watts or less).
This means that when your PV system is generating more electricity than you are using, your electric meter spins backward. At the end of the month you are billed only for net consumption. At the end of a billing cycle, most utilities will pay you their wholesale rate for any net surplus.
Net metering rule changes are pending that will require utilities to use an annual net metering cycle. For areas like western Oregon where one season is significantly sunnier than another, this will mean a greater annual savings because all the generation will be offsetting retail electric rates. Stay tuned for updates.
Be sure to get a copy of your utility's net metering policy and its interconnection agreement before you purchase your system. It specifies the terms and conditions under which your system will be connected to the utility grid, and includes the technical requirements that ensure safety and power quality.
After your PV system is installed, it must be inspected by both the local permitting agency (usually a building or electrical inspector) and by the electric utility with which you entered into an interconnection agreement.
Links to net metering: