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Note: Legislation enacted in May 2012 (HB 1296) allowed combined-heat-and-power (CHP) systems to account for up to 4 MW of the state's aggregate net-metering capacity limit of 50 MW. This new law took effect July 13, 2012.

New Hampshire requires all utilities selling electricity in the state to offer net metering to customers who own or operate systems up to one megawatt (1 MW) in capacity that generate electricity using solar, wind, geothermal, hydro, tidal, wave, biomass, landfill gas, bio-oil or biodiesel. CHP systems that use natural gas, wood pellets, hydrogen, propane or heating oil are also eligible.*

The New Hampshire Public Utilities Commission’s (PUC) rules for net metering distinguish between small customer-generators (up to 100 kilowatts) and large customer-generators (greater than 100 kW and up to 1 MW). The rules vary slightly for each customer type.

The aggregate statewide capacity limit of all net-metered systems is 50 MW. Each utility’s individual aggregate capacity limit is calculated by multiplying the statewide aggregate cap (50 MW) by the individual utility’s share of the “total 2010 annual coincident peak energy demand.” CHP systems may account for a maximum of 4 MW of the state’s aggregate net-metering limit.

Net excess generation (NEG) is either carried forward indefinitely to the customer’s next bill as a kilowatt-hour (kWh) credit. Customers with NEG at the end of an annual period may elect to receive payment for NEG at the utility’s avoided-cost rate. Customers retain ownership of renewable energy credits (RECs) associated with generation.

For systems up to 100 kW, a single meter that measures both the inflow and outflow of electricity internally is used. A bi-directional meter is used for larger systems. Utilities may install additional meters at their own expense.

Each utility’s net-metering tariff must be identical, with respect to rates, rate structure and charges, to the tariff that under which the customer would otherwise take default service from the utility. The PUC is authorized to develop a methodology for net metering under a time-of-use tariff.

* CHP systems up to 30 kW must have a system efficiency of at least 80% to be eligible. CHP systems greater than 30 kW and up to 1 MW must have a fuel system efficiency of at least 65%.