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N.S. Commercial Net-Metering Program: 8 Key Terms & Conditions

Published:

August 8, 2023

Author(s):

• Melanie Gillis
• Noah Entwisle

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We updated this publication on August 10, 2023.

The Nova Scotia commercial net-metering regime just took another step toward implementation. In its July 4, 2023 Decision, the Nova Scotia Utility and Review Board (UARB) approved a modified version of the commercial net-metering program submitted by Nova Scotia Power Incorporated, much of which Nova Scotia Power agreed to in advance of the Decision.

October 2022 amendments to the N.S. Renewable Electricity Regulations established the parameters for a new Nova Scotia commercial net-metering program and required Nova Scotia Power to submit the proposed program terms and conditions to the UARB for consideration and approval. The UARB is also required to review Nova Scotia Power’s process for interconnecting net-metering customers’ renewable energy generators. This review is currently taking place in a separate UARB proceeding (UARB matter M10905).

On November 25, 2022, Nova Scotia Power applied to the UARB for approval of its proposed terms and conditions, resulting in the commencement of UARB matter M10872 in which the UARB considered Nova Scotia Power’s application and the input of various stakeholders. The UARB’s July 2023 Decision underscores the objectives established in the October 2022 amendments to the Renewable Electricity Regulations:

• Prompt, efficient, and cost-effective processing of net-metering applications.
• Enhanced transparency and access to information for potential applicants.
• Enhanced accountability and regulatory oversight for Nova Scotia Power in the implementation of the new program.
• Incentivizing participation in the new program by giving participants control over renewable energy certificates obtained through participation in the program.

Here’s where the UARB landed on eight key program terms and conditions in its July 4, 2023 Decision.

1. Accelerated Implementation Deadlines

Nova Scotia Power proposed implementing the commercial net-metering program within 90 days of the Decision. However, the UARB directed Nova Scotia Power to implement Class 1 net-metering applications (for facilities with an aggregate nameplate capacity greater than 27 kW but less than 100 kW) within 30 days of the Decision and Class 2 Net-Metering Applications in less than 90 days if possible. The UARB also directed Nova Scotia Power to report on its implementation of the program 30 days after the Decision.

On August 3, 2023, Nova Scotia Power provided its “30 Day Report” confirming Class 1 Net-metering had been implemented. Nova Scotia Power also provided an update regarding its progress in implementing Class 2 Net-metering service but gave no indication whether it could implement Class 2 Net-metering service earlier than the 90-day deadline the UARB set in the Decision.

2. Control Over Renewable Energy Credits

The issue of control over renewable energy credits (RECs) is subject to ongoing commentary from intervenors and is still progressing through the UARB compliance filing process. On July 18, 2023, Nova Scotia Power submitted its compliance filing, attaching its proposed Commercial Net-metering agreement, in accordance with the UARB’s Decision. On July 25, 2023, intervenors filed comments in response to that compliance filing. Some raised concerns with how Nova Scotia Power proposed treating renewable energy credits. Specifically, they say the environmental attributes of RECs belong to the customer which  should have the option of registering and monetizing RECs with a third party without Nova Scotia Power’s involvement. On August 1, 2023, Nova Scotia Power filed its reply to those comments and included changes to its July 18 proposed Commercial Net-metering agreement, providing:

Registration & Management. Upon request by a customer, Nova Scotia Power will register all renewable energy certificates associated with a customer’s renewable energy generator(s) with an internationally accredited organization. The total energy output is based on the output measured by Nova Scotia Power-installed meters. In its request, the customer will grant Nova Scotia Power authority to manage the administration of the credits on its behalf. Nova Scotia Power will immediately retire all registered credits on the customer’s behalf. Nova Scotia Power will provide the customer with a document confirming the annual volume and vintage of renewable energy certificates and retire the renewable energy certificate.

Use of Credits. Nova Scotia Power can count the total electrical energy output of the customer’s facility toward its compliance with the requirements under the Nova Scotia Renewable Electricity Regulations. Customers can use the credits towards the achievement of emissions reduction targets applicable to their operation but are prohibited from taking any action to utilize or monetize their facility’s environmental attributes in a way that could hinder Nova Scotia Power from doing so.

On August 9, 2023, an intervenor filed further comments in response to Nova Scotia Power’s August 1 reply. These comments reiterate the intervenors’ concerns with Nova Scotia Power’s proposed treatment of RECs and emphasize their position it’s inconsistent with the Renewable Energy Regulations. With all comments now filed, stakeholders await the UARB’s response.

3. Access to Grid Information

The Decision aims to help potential program participants make informed decisions about whether, when and where to apply. The UARB directed Nova Scotia Power to develop a “pre-application report” for potential applicants so they can review local grid condition information before deciding whether to apply under the program. Nova Scotia Power also agreed to publish “hosting capacity information” to improve transparency about grid connections and the length of the queue for interconnection requests. By making this information available up-front, prospective net-metering customers can predict with a much higher degree of certainty whether their applications will be approved, and what the likely costs of those applications will be, reducing the risk involved with net-metering applications. In its 30-Day Report, Nova Scotia Power advised it had created an “initial version” of its hosting capacity tables.

4. “Clusters” or “Study Group” Application Consideration

Nova Scotia Power proposed a system in which net-metering applicants must pay any upgrade costs Nova Scotia Power incurs to accommodate the interconnection of new renewable generation facilities. The UARB directed Nova Scotia Power to study commercial net-metering applications in “clusters” or “study groups” if the applications are all made within the same distribution zone. This would allow applicants to share system upgrade costs that might be required within the distribution zone to accommodate the interconnection of the new renewable generation facilities, allowing for a distribution of application costs.

5. Rollover of Accumulated Energy Credits

Nova Scotia Power clarified before the UARB that any accumulated energy generation credits not applied against billed energy bills in a calendar year will be rolled over to the following calendar year. This helps customers maximize savings by allowing them to apply excess energy generated in a calendar year against power bills in the next calendar year.

6. Energy Storage System Use

Nova Scotia Power also clarified that battery storage systems don’t count towards the maximum nameplate capacity allowed for a net-metering customer. This gives customers greater flexibility to pair their renewable generation facilities with energy storage facilities, maximizing their ability to use and benefit from the energy they generate.

7. Prompt Application Processing

Nova Scotia Power committed to allocating resources to ensure there would be no backlog of new applications after it implements the commercial net-metering program. The UARB ordered Nova Scotia Power to provide service standards for Class 1 net-metering applications within 30 days of the Decision. In its 30-day Report, Nova Scotia Power proposed the following service standards for Class 1 Commercial Net-metering Applications:

• Interconnection Request Review. 10 business days following Nova Scotia Power’s receipt of a completed Interconnection Request and Equipment Information Form.

• Electrical Plans Review. 15 business days following completion of Interconnection Request Review.

• Rough-in Electrical Inspection. 10 business days from installer requesting the rough-in electrical inspection.

• Final Electrical Inspection. 10 business days from installer requesting final electrical inspection.

• Execution of Commercial Net-metering Participant Agreement. Five business days from Nova Scotia Power’s receipt of a completed Participant Agreement.

• Account Setup. Five business days from final Electrical Inspection and execution of completed Participant Agreement.

Nova Scotia Power also advised it will establish a “Fast-Track” option for Class 2 Net-metering Applications that aren’t expected to have a “material impact” on existing transmission and distribution systems.

8. Program Reviews & Reports 

The UARB ordered a program review to take place two years after the implementation of Class 1 Net-metering, or earlier if the UARB is made aware of issues with the program that need to be addressed. The UARB also directed Nova Scotia Power to include information about the implementation and administration of the Commercial Net-metering Program in its annual reports.

Please contact your McInnes Cooper lawyer or any member of our Renewable Energy Team @ McInnes Cooper to discuss how we can help you take advantage of Nova Scotia’s new commercial net-metering program.

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