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Net Energy Metering Agreement

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APPENDIX I - NET ENERGY METERING AGREEMENT (10 kW or Less)

SHEET NO. 39A-1

Effective June 17, 2005

Section 1. Applicant Information

Customer-Generator

Name:

Mailing Address:

City/State: , Zip Code:

Generating Facility Location (if different from above)/Tax map key

Daytime Phone #: Evening/Cell Phone #:

Electric Service Account #:

Owner of Generating Facility (if different from Customer-Generator)

Name:

Mailing Address:

City/State: , Zip Code:

Daytime Phone #: Evening/Cell Phone #:

Operator of Generating Facility (if different from Customer-Generator)

Name:

Mailing Address:

City/State: , Zip Code:

Daytime Phone #: Evening/Cell Phone #:

Section 2. Generating Facility Information

Generating Facility Information Power Conditioning Equipment Energy Storage

Solar: Rated generator capacity in kW Generator/Inverter Make/Model

Rated photovoltaic module capacity in kWDC PV Module Make/Model:

Wind: Rated generator capacity in kW Generator/Inverter Make/Model

Biomass: Rated generator capacity in kW Generator/Inverter Make/Model

Hydro: Rated generator capacity in kW Generator/Inverter Make/Model

Hybrid: Rated generator capacity in kW Generator/Inverter Make/Model

Total rated capacity in kW (Shall not exceed 10 kW) Attach specification sheet if available.

Generating System Building Permit # (Certificate of Completion or Notice of Electrical Inspection?):

Is system self-excited with potential to island:

Please submit a single line diagram. Submitted:

Location of lockable disconnect device, adjacent to meter?

If not, please describe location:

Section 3. Certification by Licensed Electrical Contractor

Signed (Licensed Electrical Contractor): Date:

License Holder (printed) Hawaii License #C:

Mail Address:

City: , Hawaii, Zip Code:

Daytime Phone #: Installation date:

Section 4. Installation

Location of lockable disconnect device, adjacent to meter? yes

If not, please describe location:

Section 5. Notice

A Customer-Generator shall provide the Company with an advance 30-day written notice of any proposed material changes made to the Generating Facility, for example, a change in ownership or an increase in capacity.

Section 6. Permits and Licenses

The Customer-Generator shall obtain, at its expense, any and all authorizations, permits and licenses required for the construction and operation of its facility.

Section 7. Metering

The Customer-Generator shall, at its expense, provide, install and maintain all conductors, service switches, fuses, meter sockets, meter instrument transformer housing and mountings, switchboard meter test buses, meter panels and similar devices required for service connection and meter installations.

SHEET NO. 39A-2

Effective June 17, 2005

Section 8. Indemnification

Each party as indemnitor shall hold harmless and indemnify the other party against loss and liability for injuries to persons and damages resulting from the interconnection and parallel operation of the Generating Facility.

Section 9. Continuity of Service

The Company may require that the Generating Facility be temporarily curtailed, interrupted or deliveries of energy reduced under certain circumstances.

Section 10. Personnel and System Safety

If at any time the Company determines that the continued operation of the Generating Facility may endanger any person or property, the Company shall have the right to disconnect the Generating Facility.

Section 11. Additional Information

The Company reserves the right to require additional information, where necessary, to serve the Customer-Generator under net energy metering service.

Section 12. Term

This agreement shall become effective upon execution by the Customer-Generator and the Company and shall continue in effect on a month-to-month basis.

Section 13. Net Energy Metering and Billing

A. General:

(1) The net energy metering and billing arrangement covered by the Net Energy Metering Agreement shall be governed by the Company’s Rule 18.

(2) Customer-Generator’s with Net Energy Metering service shall be billed monthly and reconciled every 12 months.

(3) Measurement of kilowatthours supplied and produced shall begin at the appropriate billing period start date.

B. Net Electricity Producer:

(1) When electricity produced exceeds electricity supplied, the Customer-Generator is deemed a net electricity producer.

(2) In such a billing period, the Customer-Generator will not be billed for kilowatthours supplied, but shall be charged the Minimum Charge.

C. Net Electricity Consumer:

(1) When electricity supplied exceeds electricity produced, the Customer-Generator is deemed a net electricity consumer.

D. Other:

(1) If a Customer-Generator terminates service prior to the end of a 12-month period, the Company shall reconcile the account.

Section 14. Customer-Generator (and/or Owner/Operator) Signature

I agree to be bound by the terms of this Net Energy Metering Agreement, and I certify that all information provided is true and correct.

Customer-Generator Date

Owner/Operator of Generating Facility Date

Section 15. Company Signature

I hereby acknowledge receipt and completeness of the Net Energy Metering Agreement.

Company By

Title Date

THIS SECTION FOR HECO USE ONLY

Hawaiian Electric Company, Inc.

Director

Enter text✕

What a Net Energy Metering Agreement Is and where it fits

A Net Energy Metering Agreement (NEM Agreement) is a formal contract between a customer-generator and their electric utility that sets the terms for interconnection, metering, and crediting of exported solar or distributed generation. It records the system owner, installation details, metering arrangement, billing credit method, and responsibilities for operation and maintenance. The agreement may be a standard utility form or a state-specific interconnection contract and is required before a system can operate and receive net metering credits under applicable tariff rules.

Why the Net Energy Metering Agreement matters

The NEM Agreement documents how exported generation is measured and credited, protecting both the customer and the utility. It clarifies billing treatment, liability allocation, and meter ownership, and it is typically required to activate net metering credits and comply with interconnection procedures.

Why the Net Energy Metering Agreement matters

Who completes a Net Energy Metering Agreement

Each signer should have authority to bind their organization or household and access to system specifications to complete technical exhibits.

  • Residential customers seeking to offset on-site electricity with rooftop solar or small wind installations.
  • Commercial and nonprofit building owners installing solar to receive billing credits.
  • Solar developers and installers preparing interconnection paperwork and technical attachments.

Key parts of a professional Net Energy Metering Agreement

A complete NEM Agreement includes identification, technical specifications, interconnection terms, metering and billing language, indemnity and insurance obligations, and signature blocks for all parties.

Parties

Legal names and contact details for the customer-generator, installer (if applicable), and the utility that will accept exported energy.

System Details

Installed capacity, inverter type, single‑line diagram reference, and expected commissioning date with any equipment serial numbers or model numbers noted.

Metering & Credits

Method of metering, netting period (monthly/annual), credit calculation, and billing cycle adjustments for exported energy.

Interconnection Terms

Permission to connect, required protective devices, testing requirements, conditions for disconnection, and utility inspection rights.

Liability & Insurance

Indemnity allocation, required insurance limits, and responsibilities for maintenance and damages caused by the generation equipment.

Signatures

Signature blocks, authorized signer designations, effective date, and any witness or notarization lines if required by the utility or state.

Essential data elements at a glance

Account Number: Utility account ID
Meter Number: Existing meter ID
System Size: kW/kVA values
Installer: Company name
Equipment Model: Inverter/array model
Effective Date: MM/DD/YYYY

Step-by-step: completing the Net Energy Metering Agreement

Follow this sequence to gather materials, complete the form, and submit to the utility for review and activation.

  • 01
    Gather Documents: Collect utility bill, site plan, and equipment specifications.
  • 02
    Complete Form: Fill identification, system, and metering sections.
  • 03
    Attach Exhibits: Add single-line diagram, proof of insurance, and installer certificate.
  • 04
    Submit: Send to utility via their required channel for review.

Customizing and submitting the agreement online

Set up a digital workflow that includes conditional fields for technical attachments and automatic routing to utility and customer contacts.

Field Configuration
System Size Field Numeric with kW suffix
Attachment Field Required when capacity exceeds threshold
Signer Order Customer then utility
Notifications Email on each completed step

Where to file and what happens next

After signing, route the completed agreement and attachments to the utility interconnection unit; the utility reviews, may inspect, and then activates net metering.

  • Utility Portal: Primary submission channel for most utilities
  • Email Submission: Accepted by some utilities with secure attachments
  • In-Person Delivery: Occasional option for smaller utilities
  • Third-Party Platform: Installers may submit on customer behalf

Digital signing, eSubmission, and platform needs

Ensure the platform can produce an audit trail and export a notarizable PDF if your utility or state requires notarization or witnessed signatures.

  • File formats: PDF, DOCX supported
  • Integrations: Works with Google Drive, Box, NetSuite
  • Compliance: Supports ESIGN and UETA

Typical timelines and processing expectations

Review and activation timelines differ by utility; plan for application intake, technical review, possible inspection, and final meter change or reconfiguration.

Application Intake:

Utility acknowledges receipt within business days

Technical Review:

Utility performs engineering review; timing varies

Inspection:

On-site inspection may be scheduled before activation

Meter Upgrade:

Meter replacement or reprogramming if required

Activation:

Net metering credits start after final sign-off

Common mistakes that delay net metering

  • Submitting incomplete technical exhibits or missing single-line diagrams and equipment specs.
  • Mismatched account or legal names between the agreement and utility billing records.
  • Failing to list authorized signer or provide proof of authorization for corporate accounts.
  • Uploading illegible attachments or using incorrect file formats for utility portals.

Risks and contractual consequences to note

Credit Loss: Delayed or denied credits
Interconnection Denial: Utility may refuse connection
Backbilling: Retroactive billing adjustments possible
Liability Exposure: Customer may assume repair costs
Insurance Gaps: Insufficient coverage can be costly
Contract Breach: Termination or penalties

eSignature vendor comparison for executing NEM Agreements

Select a provider that supports secure PDF signing, audit trails, and any required compliance addenda; signNow appears first in the vendor column below.

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Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
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Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-world examples of NEM Agreement use

These examples show how organizations streamlined interconnection and documentation when deploying distributed generation.

Optica Ventures

Optica prepared unified agreement packets for multiple residential installs to simplify utility review.

  • Installer consolidated single-line diagrams.
  • The result reduced back-and-forth with the utility and accelerated credit activation across sites, improving predictability for project cash flows and customer billing.

Xerox NetSuite Ops

Xerox used standardized agreement templates across sites to capture consistent system metadata.

  • Templates included insurer and liability clauses.
  • Standardization reduced administrative variance, improved auditability for corporate solar installations, and simplified reconciliations with utility billing departments.

Frequently asked questions about Net Energy Metering Agreements

Answers to common legal, technical, and process questions when preparing or signing an NEM Agreement.


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