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

The Palau 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.