Dive Brief:

• The Public Utilities Commission of Ohio Wednesday unanimously adopted updates to its administrative rules governing net metering, defining limits to system size and reducing the credits by 30% for customers in some service territories, according to the Columbus Dispatch. 
• PUCO officials said they would limit the size of a net metered installation to 120% of a customer’s average annual electric usage at the time the facility is connected to the electric grid.
• For American Electric Power (AEP) customers, the updates rules would mean about a 30% reduction to net metering rates.​

Dive Insight:

Ohio joined a growing list of states adjusting net metering rates for rooftop solar customers. PUCO's adjustments to net metering rules drew a mixed response from advocates, who say aspects of the commission's order are good while others represent a step in the wrong direction. The updated rules address the types and sizes of qualifying electric generation facilities, and the rate utilities use to credit customers for any excess electric generation returned to the electric grid. 

According to the Columbus Dispatch, customers of AEP would see monthly credits decline by about 31%. Some parts of the monthly crediting system would no longer apply, regulators determined.

Updated rules address the types and sizes of qualifying electric generation facilities, and the rate utilities use to credit customers for any excess electric generation returned to the electric grid.

PUCO's decision means customers receiving the standard service offer from regulated electric distribution utilities will be compensated for energy supplied to the grid in the form of a monthly bill credit at the utility’s standard service offer rate for energy. Customers who receive service from a competitive electric supplier may be credited at a rate agreed to in their contract for service.

“The rules adopted today enhance the state of Ohio’s energy policy by establishing consistent, state-wide parameters for net metering, and foster a competitive marketplace for innovative products and services,” PUCO Chair Asim Haque, said in a statement.

Haque also said the body would continue to monitor its policies "as more customers take advantage of net metering opportunities.”

Trish Demeter, vice president for policy at the Ohio Environmental Council, told the Dispatch that despite some positive aspects of the decision, "this is a step back" for how the credits are valued. 

A copy of the adjustments can be found here.