Section 18.04 - Calculation of Net Metering Credits(1) For a Class I Net Metering Facility that is a Wind Net Metering Facility, Class I Net Metering Facility that is a Solar Net Metering Facility, Class I Net Metering Facility that is an Agricultural Net Metering Facility, Class I Net Metering Facility that is an Anaerobic Digestion Net Metering Facility, Class II Net Metering Facility, a Net Metering Facility of a Municipality or Other Governmental Entity, or a Solar Net Metering Facility that receives approval by Department order, except those Solar Net Metering Facilities governed by 220 CMR 18.04(3) and (4), each Distribution Company shall calculate for each Billing Period a Net Metering Credit equal to: (a) 100% of the net excess kilowatt-hours, by time-of-use, if applicable, multiplied by the sum of the following Distribution Company charges applicable to the rate class under which the Host Customer takes service:1. basic service kilowatt-hour charge in the ISO-NE load zone where the Host Customer is located;2. distribution kilowatt-hour charge;3. transmission kilowatt-hour charge; and4. transition kilowatt-hour charge;(b) Except that a Class I Net Metering Facility that is a Solar Net Metering Facility, Class II Net Metering Facility that is a Solar Net Metering Facility, or a Class III Net Metering Facility that is a Solar Net Metering Facility shall receive Market Net Metering Credits as provided in 220 CMR 18.04(3) or (4) after 25 years from the date on which the Solar Net Metering Facility was first authorized to interconnect to the distribution system.(2) For a Class I Net Metering Facility other than a Class I Net Metering Facility that is a Wind Net Metering Facility, Class I Net Metering Facility that is an Agricultural Net Metering Facility, Class I Net Metering Facility that is an Anaerobic Digestion Net Metering Facility, or a Class I Net Metering Facility that is a Solar Net Metering Facility, each Distribution Company shall calculate a Net Metering Credit for each Billing Period as the product of the: (a) 100% of the net excess kilowatt-hours, by time-of-use, if applicable; and(b) average monthly clearing price at the ISO-NE.(3) For a Class I Net Metering Facility that is a New Solar Net Metering Facility, Class II Net Metering Facility that is a New Solar Net Metering Facility, or Class III Net Metering Facility that is a New Solar Net Metering Facility, except for those Solar Net Metering Facilities governed by 220 CMR 18.04(4), each Distribution Company shall calculate for each Billing Period a Market Net Metering Credit equal to 60% of the net excess kilowatt-hours, by time-of-use, if applicable, multiplied by the sum of the Distribution Company's:(a) basic service kilowatt-hour charge in the ISO-NE load zone where the Host Customer is located;(b) distribution kilowatt-hour charge;(c) transmission kilowatt-hour charge; and(d) transition kilowatt-hour charge.(4) For a New Solar Class I Net Metering Facility that is a Cap Exempt Facility, or a New Solar Net Metering Facility, of which the Municipality or Other Governmental Entity is the Host Customer and only allocates Net Metering Credits to the accounts of other customers that could also qualify as a Municipality or Other Governmental Entity, each Distribution Company shall calculate for each Billing Period a Market Net Metering Credit equal to 100% of the net excess kilowatt-hours, by time-of-use, if applicable, multiplied by the sum of the Distribution Company's:(a) basic service kilowatt-hour charge in the ISO-NE load zone where the Host Customer is located;(b) distribution kilowatt-hour charge;(c) transmission kilowatt-hour charge; and(d) transition kilowatt-hour charge.(5) For a Neighborhood Net Metering Facility or a Class III Net Metering Facility other than a Net Metering Facility of a Municipality or Other Governmental Entity, and those Solar Net Metering Facilities governed by 220 CMR 18.04(3) or (6), each Distribution Company shall calculate for each Billing Period a Net Metering Credit equal to:(a) 100% of the net excess kilowatt-hours, by time-of-use, if applicable, multiplied by the sum of the Distribution Company charges applicable to the rate class under which the Host Customer takes service:1. basic service kilowatt-hour charge in the ISO NE load zone where the Host Customer is located;2. transmission kilowatt-hour charge; and3. transition kilowatt-hour charge;(b) Except that a Solar Net Metering Facility that is a Neighborhood Net Metering Facility shall receive Market Net Metering Credits, as provided in 220 CMR 18.04(6), after 25 years from the date on which it was first authorized to interconnect to the distribution system; and (c) Except those Class III Net Metering Facilities governed by 220 CMR 18.04(1)(b).(6) For a New Solar Net Metering Facility that is a Neighborhood Net Metering Facility, each Distribution Company shall calculate for each Billing Period a Market Net Metering Credit equal to 60% of the net excess kilowatt hours, by time-of-use, if applicable, multiplied by the sum of the Distribution Company's: (a) basic service kilowatt-hour charge in the ISO-NE load zone where the Host Customer is located;(b) transmission kilowatt-hour charge; and(c) transition kilowatt-hour charge.(6A) For a Small Hydroelectric Net Metering Facility that is participating in the Small Hydroelectric Net Metering Program, each Distribution Company shall calculate for each Billing Period a Net Metering Credit equal to 100% of the net excess kilowatt-hours, by time-of-use, if applicable, multiplied by the Distribution Company's basic service kilowatt-hour charge in the ISO-NE load zone where the Host Customer is located.(7) The calculation of Net Metering Credits under 220 CMR 18.04 shall not include the demand side management and renewable energy kilowatt-hour charges set forth in M.G.L. c. 25, §§ 19 through 20, nor shall it include the per kilowatt-hour surcharge or surcharges provided for by 220 CMR 18.09(4).(8) For any Billing Period for which a Distribution Company calculates a Net Metering Credit for a Host Customer, the Distribution Company shall apply the Net Metering Credit to the Host Customer's account for the subsequent Billing Period, unless the Host Customer provides otherwise pursuant to 220 CMR 18.05.Amended by Mass Register Issue 1318, eff. 7/29/2016.Amended by Mass Register Issue 1353, eff. 12/1/2017.Amended by Mass Register Issue 1516, eff. 3/1/2024.