Salem Electric's Net Metering Policy

This policy is an excerpt from Salem Electric's Service Policies dated October 2023.

Salem Electric may purchase electricity generated by members who own a net metering facility. Salem Electric may limit the cumulative generating capacity of all net metering systems served by Salem Electric to any statutorily required limit. Once this limit is met, Salem Electric may not permit the connection of any new member-generators. The net metering facility must use solar, wind, fuel cell, hydroelectric power, landfill gas, digester gas, waste, dedicated energy crops available on a renewable basis or low-emission, nontoxic biomass based on solid organic fuels from wood, forest or field residues to generate electricity. It must have a generating capacity of not more than 25 kilowatts, and be located on the member-generator’s premises. The generator must operate in parallel with Salem Electric’s existing transmission and distribution facilities and with its primary intent to offset part or all of the member-generator’s electric requirements. The member must sign a Salem Electric Net Metering and Interconnection Agreement.

The net metering facility must meet all applicable safety and performance standards established by the Oregon State Building Code, the Oregon Public Utility Commission, the National Electrical Code, the Institute of Electrical and Electronics Engineers and the Underwriters Laboratories.

Salem Electric shall have the option of requiring ongoing testing of disconnection equipment. The member shall provide a safety disconnect device located adjacent to Salem Electric’s metering equipment.

Salem Electric shall not be liable, directly or indirectly, for permitting or continuing to allow the attachment of a net metering facility, or for the acts or omissions of the member-generator that cause loss or injury, including death, to any third party.

At its expense, Salem Electric will install bi-directional metering equipment that is capable of registering the flow of electricity in each direction. Effective October 1, 2019, each monthly billing period Salem Electric will charge a member-generator the monthly facilities charge and all applicable charges for the net electricity that Salem Electric delivered. If in a monthly billing period a member-generator has supplied to Salem Electric more electricity than Salem Electric has delivered to the member-generator, Salem Electric will apply the excess kWhs as a cumulative credit to the member-generator’s monthly bill. Salem Electric will apply such credit at the avoided cost rate for each component on the bill that uses kWhs as the billing determinant. 

Systems installed prior to October 1, 2019, will be paid on an annual true-up through April 1, 2040. For the billing cycle ending in March of each year, or at any other time the member discontinues service at the net-metered account, if any unused credits accumulated during the previous 12 months remain, Salem Electric will pay the member-generator an amount equal to the unused credited kWhs times the average wholesale price of power purchased by Salem Electric. Modifications of existing net-metered PV systems that require a new net-metering agreement immediately revokes the application of annual true-up credit, changing the credit determination to a monthly true up credit. The annual true up is non-transferrable. After April 2040, all net-metered PV systems will have a monthly true up.