Net Metering Credit Agreement Template for United States

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Key Requirements PROMPT example:

Net Metering Credit Agreement

"I need a Net Metering Credit Agreement for my 500kW solar installation in California, where I'll be allocating credits to three different commercial tenants in my office building starting March 2025, with specific provisions for seasonal credit banking."

Document background
The Net Metering Credit Agreement serves as a critical document in the renewable energy sector, particularly in jurisdictions throughout the United States where net metering programs are established. This agreement becomes necessary when a renewable energy system owner wishes to receive credit for excess electricity generated and potentially allocate these credits to other accounts. The document outlines credit calculation methodologies, allocation procedures, and compliance requirements with applicable utility tariffs and state regulations. It's particularly important for commercial and industrial customers with significant renewable energy installations, as well as for community solar projects where multiple participants may share in the benefits of a single generating facility.
Suggested Sections

1. Parties: Identification of parties entering into the agreement, including utility company and customer/generator

2. Background: Context of the agreement, including reference to applicable regulations and customer's generating facility

3. Definitions: Key terms used throughout the agreement, including 'Net Metering Credits', 'Billing Period', 'Generation Facility'

4. Term and Termination: Duration of agreement and conditions for termination

5. Credit Calculation and Allocation: Methodology for calculating credits and how they will be allocated

6. Billing and Payment: Process for billing and crediting arrangements

7. Facility Requirements: Technical specifications and compliance requirements for the generating facility

8. Representations and Warranties: Standard legal assurances from both parties

Optional Sections

1. Credit Trading Provisions: Terms for trading credits with other customers (include when jurisdiction allows credit trading between customers)

2. Environmental Attributes: Ownership and handling of RECs and other environmental attributes (include when generating facility creates environmental attributes)

3. Force Majeure: Provisions for unforeseeable circumstances (include when parties want specific provisions for extraordinary events)

4. Assignment: Terms for transferring rights under the agreement (include when transfer rights are important to either party)

Suggested Schedules

1. Schedule A - Facility Description: Technical specifications of the generating facility

2. Schedule B - Credit Allocation Form: Details of how credits will be allocated among accounts

3. Schedule C - Interconnection Agreement: Reference to or inclusion of separate interconnection agreement

4. Appendix 1 - Credit Calculation Methodology: Detailed explanation of credit calculation process

5. Appendix 2 - Applicable Utility Tariffs: Reference to relevant utility tariffs and rate schedules

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

PURPA: Public Utility Regulatory Policies Act - Federal legislation that requires utilities to buy power from qualifying facilities at avoided cost rates

FERC Regulations: Federal Energy Regulatory Commission regulations governing interstate electricity transmission and wholesale electricity markets

Federal Power Act: Fundamental federal law governing the regulation of electric utilities and the interstate transmission of electricity

Energy Policy Act 2005: Federal legislation that modified national energy policy, including provisions affecting net metering and interconnection standards

State PUC Regulations: State Public Utility Commission regulations that govern utility operations, rates, and customer relationships at the state level

State Net Metering Laws: State-specific legislation and regulations governing net metering programs, including credit calculations and compensation rates

State RPS: State Renewable Portfolio Standards that set requirements for renewable energy adoption and may affect net metering policies

State Consumer Protection: State-specific laws protecting consumer rights in utility service agreements and energy contracts

Utility Requirements: Local utility company-specific requirements for interconnection, equipment standards, and operational procedures

REC Programs: State-specific Renewable Energy Credit programs that may interact with net metering arrangements

Tax Legislation: Federal and state tax laws affecting renewable energy installations and net metering arrangements, including incentives and credits

Environmental Regulations: Federal and state environmental regulations affecting renewable energy installations and grid connections

Grid Standards: Technical standards for grid interconnection, including IEEE and UL requirements for safety and compatibility

Credit Methodology: Rules and procedures for calculating and applying net metering credits to customer accounts

Billing Procedures: Requirements for billing arrangements and credit transfer procedures under net metering agreements

Equipment Standards: Technical specifications and standards for renewable energy equipment and metering devices

Liability Requirements: Insurance and liability requirements for parties involved in net metering arrangements

Dispute Resolution: Legal framework and procedures for resolving disputes related to net metering agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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