New York's net metering law was signed into law on August 13, 1997, and applies only to residential customers with photovoltaic (PV) generating facilities of not more than 10 kW in capacity. New York's law is one of the few to specify that billing should be annualized. If a customer generates more electricity than they use during a billing period, the net excess generation is applied to the next billing period as a credit. Utilities will purchase NEG at the end of the year at their avoided cost.

In September 2002, legislation (S.B. 6592) was signed into law that expanded the state's net metering law to include farm-based biogas systems of up to 400 kW in size. Eligible systems include those that generate electricity from biogas produced by the anaerobic digestion of agricultural waste, such as livestock manure, farming waste, and food processing wastes.

In September 2004, legislation (S.B 4890-E) was signed into law that expanded NY's net metering program to include residential wind turbines of 25 kW or smaller and farm-based wind turbines of 125 kW or smaller. Net excess generation for wind turbines of 10 kW or less is credited to the next month’s bill at the retail rate. Net excess generation for systems larger than 10 kW is credited at the utility's avoided cost rate. All projects are reconciled annually and excess generation at the end of the year is paid for at the avoided cost rate. Utilities are prohibited from imposing standby rates, backup fees, or other additional charges or fees on qualified customers who choose to install a wind turbine and receive net metering.  The law includes a sharing of interconnection costs and a limit on the amount of net metering a utility is required to provide (two-tenths of a percent of the 2003 utility territory demand). Utilities may may elect to provide more net metering and the Public Service Commission is given the authority to raise the limit after January 2006.  

More:

• View New York's Net Metering Law
  Laws of New York 1997, Chapter 399 (in code as Public Service Law, Article 4, Sec. 66-j]
• View New York's Legislation Amending Net Metering Law - (S.B. 6592) 2002
• View New York's Legislation Amending Net Metering Law - (S.B 4890-E) 2004

Other Resources:

• New Rules Project's section on Net Metering Rules
• Database of State Incentives for Renewable Energy - DSIRE
• Model Net Metering Law for Renewable Energy Technologies - by the Interstate Renewable Energy Council, August 2003
  This model limits net metering to systems 25 kW or less for residential applications and 100 kW or less at commercial sites. The rule would allow first-come first-served net metering until a utility reaches 2 percent of its peak load.
• Summary of Net Metering Programs in the United States - by DSIRE, ongoing updates
• Consumer Guide to Renewable Energy for Your Home or Business - by DOE Office of Power Technologies
• Green Power Networks' State Net Metering Program Descriptions