Palau - Net Metering
Palau's net metering program allows you to offset your electricity bill by generating power from solar, wind, or water systems; excess power you send to the grid is credited at no less than 50% of the applicable tariff rate on your next month's bill. To participate, you must be a customer of the Palau Public Utility Corporation—contact them to apply and get your system connected.
Eligible customer-generators are residential, commercial, government, and industrial customers of Palau Public Utility Corporation using solar, wind, or water generation; excess generation beyond site maximum demand requires prior approval for larger capacity. Credits are applied monthly at no less than 50% of the billing period's tariff rate, and the 12-month true-up cycle aligns with the customer's annual bill.
The Palau Net Metering Act of 2009 implements 12-month net metering to encourage renewable investment and reduce fossil fuel imports. Customers receive credits for excess generation at minimum 50% of applicable tariff; for commercial and industrial sites, generation exceeding maximum kilowatt demand requires advance approval. The Palau Public Utility Corporation may establish per-technology capacity limits and evaluates non-solar/-wind/-water applications case-by-case.
Program details
- Program ID
- 5645
- Last updated
- 2/27/2026
Eligibility
- Sectors
- commercial industrial local government residential
- Technologies
- solar water heat solar thermal electric solar thermal process heat solar photovoltaics wind (all) tidal wave ocean thermal solar pool heating wind (small) other distributed generation technologies
Program summary
Note: The Republic of Palau is a United States associated state.
The Palau Net Metering Act of 2009 established net metering on the Island of Palau. Net metering was implemented in order to:
1. Encourage investment in renewable energy sources.
2. Stimulate economic growth.
3. Reduce demand for electricity when alternative energy is available.
4. Enhance the continued diversification of the energy resources used in Palau.
5. Reduce fossil fuel imports for electricity generation and increase energy independence.
6. Reduce carbon emissions and benefit Palau's environment.
Eligibility and Availability
An eligible net metering customer-generator is a residential, commerical, government, or industrial customer of the Palau Public Utility Corporation. Generation must be from solar power, water power, or wind power. Any other forms will be considered on a case by case basis.The net metering time period is 12 months.
Net Excess Generation
The customer shall be credited for the excess kilowatt-hours generated at no less than 50% of the tariff applicable during the billing period, with this kilowatt-hour shown on the following month's bill as an offset for kilowatt-hours supplied from the grid for that month. For commercial or industrial installations, generatiion in excess of the maximum kilowatt demand for the site is not permitted unless a larger size is approved by the Palau Public Utility Corporation for connection.
Meter Aggregation Provision
ThePalau Public Utility Corporation can implement a maximum limit for installed capacity of renewable energy systems connected to the grid for each technology of renewable energy system.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
