The customer will have 2 options for compensation structures: Netting or Buy-All.
The Netting structure is similar to Net Metering whereby the onsite electricity usage is netted against the renewable system production and reflected on the customer's electric bill. Payments are issued quarterly for the value of the Renewable Energy Credits (RECs). 1MWh of production yields 1 REC. The customer can receive direct payment for the RECs or they can assign all or a portion of the compensation to a third party.
Under the Buy-All structure 100% of electricity used onsite is paid for by the customer and 100% of the electricity and RECs produced by the project is compensated separately. The customer can designate the percentage of compensation that goes to a third party and what percentage they will receive as direct payments. Any remaining compensation is applied to the customer’s monthly bill.
Graphical representations of the compensation structures can be found on the NRES Program Page.