Net Metering (NEM) vs Distributive Generation (DG)
- NEM = Residential or Commercial with a system size not exceeding 25kW, per Corporate Policy
- DG = Residential or Commercial with a system size exceeding 25kW (will have a different application and will be handled on a case by case basis), per Corporate Policy 138.
Net-metering System Sizing and Limitations:
A Member-Generator’s Net-Metering System shall be sized in accordance as follows:
- The Net-Metering System capacity may equal no greater than the highest energy usage that occurred in 12 consecutive months out of the last 24 months for the meter that will have the Net-Metering System connected to it.
- If the Member-Generator’s energy usage data does not exist for a particular meter, the Net- Metering System can be no greater than 8 watts AC per square foot of the interior living space for the meter that will have the Net-Metering System connected to it. (a Nye County approved plot plan must be submitted to verify livable sq.ft.)
- If a Member-Generator has a specific constraint that will not allow either option 1 or 2 to be sufficient for sizing a Net-Metering System, VEA will determine the allowable system size on a case by case basis.
The Member-generator may choose to install a Net-metering system with a system size less than the amount calculated with the methods listed above. The Net-metering system shall not exceed 25 kW or the Member-generator’s service entrance capacity. If the service entrance capacity is required to be upgraded, VEA will follow Corporate Policy 133 accordingly.
A Member-generator’s Net-metering System will require the installation of a VEA Net Meter and a VEA Production Meter. All costs associated with these installations will be in accordance to Corporate Policy 136.
Credit for Excess-Electricity
A Member-generator will receive one Excess Energy Credit from VEA for each kilowatt-hour (kWh) of excess energy generated by the Member-generator’s Net-metering System. The Excess Energy Credit is seventy-five percent (75%) of the Retail Rate of which the Member-generator pays VEA for delivered energy. This credit can be applied to energy offset only. Any remaining Excess Energy Credits available at the end of the current billing period will be carried forward to the next billing period until the end of the calendar year. At this time, any remaining Excess Energy Credits will be forfeited to VEA. For further details on the Excess Energy Credit, please review Corporate Policy 136.
Unapproved Interconnection and Energization of Net-metering System
A Member-generator must receive a Permission to Construct (PTC) and a Permission to Operate (PTO) Letter from VEA before any Net-metering System is interconnected and/or energized to VEA’s electric system. Failure to do so will result in locking out the Net-metering system. Additional penalties will apply as detailed in Corporate Policy 132.
NEM Application Process
- Your project will be processed through VEA’s Departments as follows:
- A Pre-Application Form is required to determine the allowable NEM system size. Please fill out and submit pre-application to VEA.
- After the system size has been approved by VEA, submit a completed NEM Application with non-refundable engineering fee.
A completed NEM Application includes:
NEM Interconnection Application
Agreement of Interconnection
Additional Documentation (outlined on application)
Non-Refundable Engineering Fee.
- Each application will be evaluated individually by VEA Engineering and is dependent on VEA’s existing electrical infrastructure. Due to this, timeframes and cost estimates are unique to each application. All estimates will be completed in accordance with Corporate Policy 133.
- The Member-generator will receive an invoice based off of VEA Engineering’s cost estimate. It is the Member-generator’s responsibility to ensure payment has been made on the invoice. Once payment is received, VEA will issue a Permission to Construct (PTC) Letter. Any construction completed on the Member-generator’s Net-metering System prior to the receipt of the PTC Letter may not comply with VEA’s requirements.
- The Member-generator is responsible for submitting the Nye County Building and Safety Inspection Job Card with the required initials and dates to This document will give VEA indication that the Member-generator is ready to have VEA Metering conduct the required inspection of the Net-metering system. VEA Metering will schedule an inspection accordingly.
- Permission to Operate Letter. Once VEA Metering has completed its inspection and approves the Net-metering System for energization, the Member-generator will be notified. A PTO Letter will be sent to the Member-generator for this notification. Along with the PTO, the Member-generator will received an executed Agreement for Interconnection of Distributed Generation (AIDG).
DG Applications are intended for those who intend on installing a generation system to sell power directly to VEA and will be handled on a case-by-case basis. To initiate a proposal for consideration, please submit a DG Application to VEA.
Frequently Asked Questions on NEM and DG
Q: What is a Net Meter?
A: A Net Meter is a bi-directional meter that measures the energy used and energy provided to VEA. Energy provided to VEA is the remaining energy produced by your solar panels that wasn’t used in your home. If your solar panels produce more than you use, this excess will flow back to VEA’s electric distribution system.
Q: What is a “Production Meter” and why is there a difference in kWhs between VEA’s Production Meter and Net Meter?
A: A Production Meter is a meter that is installed between the Member’s inverter and the main electrical panel. This meter will record full production of your Net-metering system before the power is consumed by you or delivered to VEA’s electric distribution system.
Q: What does the “RE”, “DE” and “NT” on my Net Meter display mean?
- RE = Energy VEA Received from the Member
- DE = Energy VEA Delivered to the Member
- NT = The Net Value between RE and DE
Q: Why do I still receive a bill from VEA?
A: Even though you are using power produced by a Net-metering system, you are still connected to VEA. Your system will not generate power overnight and you may be using more than your system is generating on cloudy days, so you’ll still draw power from VEA. When your system is unable to produce electricity or when your usage exceeds what is produced, you will be charged for those kWhs.