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Changes to Solar Compensation in 2024

Recent changes in Arkansas law will result in a change to the compensation received by net metered accounts. This will affect current and future solar members differently. Beginning in October 2024, all new net metered accounts will be compensated at the avoided cost rate (wholesale) instead of the current one-to-one compensation rate (retail). Current net metered members and any member who submits an interconnection request before October 2024 will be grandfathered in at the current one-to-one compensation until June 2040.

What is Net Metering?

  • Net Metering is the billing arrangement through which members with solar panels are compensated for the excess energy they export to the grid. The term “net” comes from the fact that you only pay for the net difference between the energy imported from the grid and exported back to the grid. Excess exported energy is credited as kWh credits into a kWh bank to offset future energy needs. These kWh credits never expire and stay in your kWh bank until you use them. Stranded credits are paid out at the avoided cost (wholesale) rate.
    • *** Insurance and $500 application requirements have been stayed by the Arkansas Public Service commission***
    • If you are considering self-generation with solar, please contact South Central Coop at (870) 246-6701 or email netmetering@scaec.com

What must I do to get net metering approved by South Central?

  • A Preliminary Interconnection Site Review Request must be submitted to the Cooperative before any work can begin along with a $320 administration fee (25 kw or less) this fee does not cover any interconnection costs related to the installation of the distributed generation system. This review helps determine the costs up front of system upgrades, including transformers, that solar companies might not be aware of.
  • Additional fees may include facility study cost and any added infrastructure upgrades (transformers or service wires) required to sustain the solar system.
  • The net metering facility must be interconnected to a metered service billed under an existing SCAEC rate schedule.
  • The South Central account must be in the name of the owner of the net metering facility.
  • Preliminary Application, Standard Agreement (PDF)