The territorial government has released its draft policy for Yukoners and businesses toying with the idea of generating their own power and feeding some into the main electrical grid.

The practice of net metering, as it's called, allows smaller producers to spill excess power onto the grid when they have it to earn credits, which they use to pull power off the grid at no cost when their generation is below what they need.

The draft policy was released Tuesday. Yukoners have until April 29 to comment.

Shane Andre of the Yukon's Energy Solutions Centre doesn't expect a stampede of interest, but suggests the policy opens another door to reduce demand.

As the cost of installing generating systems at home or on the farm keeps coming down, it's quite likely Yukoners will begin thinking more and more about generating their own power, he said.

Right now, said Andre, he sees one or two people a month come into his office to inquire about net metering.

"This fits in very much with what we call customer generation,” Andre said. "It can almost be thought of as demand side management, or energy efficiency, because from a utility's perspective, they don't have to generate electricity for your home.”

Unlike the policy still under development for independent power producers interested in commercial sales, net metering will be limited to producers of five kilowatt hours to 25 kilowatt hours.

Andre explained, for instance, the government's main administration building is outfitted with solar panels capable of generating a maximum of four kilowatts.

Last year, the system pumped out approximately 4,000 kilowatt hours, or enough to run the average home for about four months, he explained.

Solar panels at Yukon College put out about 2,000 kilowatt hours.

At $9,000 to install a solar system capable of generating one kilowatt hour, for some the cost is still too much, Andre acknowledges.

But for others, he adds, reducing one's carbon footprint isn't about cost, but about a lifestyle.

Andre adds there's also wind generation, and small micro-hydro technology for those with access to a reliable stream or creek.

Under the policy, customers who share a transformer – most who live in high-density residential neighbourhoods – the net metering opportunity will be limited to five kilowatts.

For properties fed by their own transformer – mostly those in rural and agricultural settings – will have the ability to generate up to 25 kilowatts.

A two-way meter will track power going onto the grid, and power coming out.

Credits earned through generation of excess power will cover the cost of electricity pulled off when generation is reduced by a lack of wind or sun.

Under the proposal, all credits remaining in the bank will be eliminated every March 1.

Andre said in some jurisdictions, the account is turned back to zero every month.

Customers interested in the net metering opportunity will have to prepare their own financial analyses of their proposal, according to the draft policy.

Manon Moreau, a senior planner with the Department of Energy, Mines and Resources, said there's no set timeframe for completion of the policy, as the extent and type of public feedback they'll receive are unknowns.

Once the policy is completed and adopted by the government, Yukon Energy and Yukon Electrical Co. Ltd. will have six months to iron out the implementation process.

Representatives of both utilities sit on the working group responsible for developing the net metering policy.