Enter a Net Metering Agreement to Offset Costs

Local governments or other entities that own a landfill gas (LFG) electricity project can explore setting up an aggregate net metering agreement to offset electricity use at multiple buildings with meters under common ownership. Traditional net metering requires the renewable energy source to be located at the same meter where the electricity usage is offset, but aggregate net metering allows a single system at one location to offset electricity use at multiple meters owned by the same entity.

See Community LFG Electricity Project for an option involving “virtual net metering” which allows multiple customers at multiple sites to participate together.

Criteria:

  • Landfill owner has multiple buildings with meters.
  • Project is in a state with competitive electricity markets and aggregate net metering policies which include biogas.
    • At least 17 states allow aggregate net metering.

Pros:

  • A single LFG electricity project can offset power usage at multiple meters.

Cons:

  • Some state restrictions may preclude a particular LFG electricity project from participating, e.g., LFG is not eligible, too large of a distance between the project and the meters, capacity limits.

Economic Considerations:

  • There may be a per-meter sign-up fee and per month billing charge, e.g., in California each meter has a sign-up fee of $25 and a $5 per month charge.1
  • Cost savings from offsetting electricity retail rates for multiple meters.

More Information:

References

1 Coldwell Solar. Net Metering Aggregation: What It Is and Why It Matters webpage. https://coldwellsolar.com/commercial-solar-blog/net-metering-aggregation-matters/. Accessed June 30, 2023.

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Last updated on July 1, 2024