Planning Halts Net-Meter Sign Ups

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Changes are coming for those net-metering customers who produce large amounts of power. Under the Feed in Tariff program passed by the Legislature in April, WAPA customers who produce more than 10 kilowatts but less than 500 kilowatts will sell their power to WAPA at a rate to be set by the Public Services Commission based on WAPA’s avoided cost.

“WAPA still has the cost of maintaining the full amount of the resource for customers who need it only on a rainy day,” Hodge said, referring to net-metering customers who only need to use WAPA power when their own systems don’t meet their demand.

The change is necessary because net-metering customers whose production equals or is greater than their usage are not paying any share of WAPA’s overhead. When the net-metering law was passed in 2007, WAPA agreed to give net-metering customers a credit on their bill equal to the amount of electricity they produced based on WAPA’s retail rate. WAPA Director Hugo Hodge said that number stands at 51 cents a kilowatt hour, but WAPA’s production cost is somewhere in the mid-20 cents.

According to Smith, residents who already have net-metering systems under 10 kilowatts are set for life and will not have to participate in Feed in Tariff. However, he said those, mostly businesses, with systems that produce more than 10 kilowatts will have to convert to Feed in Tariff when their systems are 10 years old.

Hodge wasn’t quite as confident that current net metering customers won’t face a change. He said he understands there’s a proposal in the works to set 2025 as a sunset date for the net-metering program. He said if the proposal goes through, net-metering customers would then convert to Feed in Tariff.

While the new law will help WAPA, potential net-metering customers still won’t be able to get permits because when the Legislature passed the Feed in Tariff system it did not expand the capacity.

Hodge said grid alternative energy systems like the two now in the works on St. Thomas and St. Croix would work better for the authority because it would serve all Virgin Islands residents, not just those who own homes and were able to hook up to net metering.