{"id":4604,"date":"2013-07-24T14:29:23","date_gmt":"2013-07-24T14:29:23","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=4604"},"modified":"2013-07-24T14:45:56","modified_gmt":"2013-07-24T14:45:56","slug":"net-metering-and-rooftop-solar-for-the-utility-of-the-future","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/","title":{"rendered":"Net Metering And Rooftop Solar For The Utility Of The Future"},"content":{"rendered":"

\"John<\/a>Like the tide washing upon the shore, new technologies are gradually eroding electric utility revenues.\u00a0 These new products enable consumers to use cleaner energy and use it more efficiently.\u00a0 Electric utilities worry this trend will ravage their industry just as wireless technology convulsed the telecommunications industry.\u00a0 The utility industry urges its members to stem the tide by, among other things, increasing consumers\u2019 net metering costs<\/a>.<\/p>\n

Net metering makes small-scale renewable energy, such as rooftop solar panels, more affordable by crediting the \u201cdistributed generation\u201d owners for the excess energy they produce.\u00a0 The electric meter measures how much electricity flows back to the grid from the distributed generation unit.\u00a0 A corresponding credit is applied to the consumer\u2019s monthly energy bill.\u00a0 The Energy Policy Act of 2005<\/a> requires public utilities to offer net metering to all consumers upon request.<\/p>\n

Why the new focus on net metering?\u00a0 The cost for rooftop solar panels has fallen 80% since 2008, including 20% in 2012 alone<\/a>.\u00a0 Installed rooftop solar energy has increased by 900% between 2000 and 2011<\/a>.\u00a0 As consumers install more rooftop solar panels and net meter them, utility revenues will decrease.<\/p>\n

Net metering policies vary from state-to-state, including the amount of the payback for excess energy.\u00a0 The most favorable policy for distributed generation owners is an excess energy credit equal to the full retail energy rate consumers pay for energy, i.e. the amount consumers are charged for using energy.\u00a0 Most states<\/a> use this measure.\u00a0 However, utilities claim this prevents them from recovering their full costs and overpays distributed generation owners, unfairly shifting costs to other consumers.\u00a0 Utilities say the credit should be equal to the utilities\u2019 wholesale energy cost at the time of day when excess energy flows back to the grid.<\/p>\n

Despite attempts by utilities to change net metering policies, state regulators are keeping these policies intact.\u00a0 Earlier this month, the Idaho Public Utilities Commission rejected Idaho Power\u2019s request<\/a> to pay less than the full retail rate and to impose higher charges on net metering consumers.\u00a0 Last month, the Louisiana Public Service Commission rejected similar requests by Louisiana utilities<\/a>.\u00a0 More recently, Arizona Public Service Company<\/a> raised the issue in a new filing.<\/p>\n

\"\"<\/a>
Source: Vote Solar<\/figcaption><\/figure>\n

As a general rule, paying the full retail rate is sound policy because rooftop solar capacity, or maximum electric output, only accounts for 0.2% of total capacity in the U.S.<\/a>\u00a0 This will encourage consumers to install more renewable energy.\u00a0 Utilities will gain valuable experience on how distributed generation functions under local conditions, and how to integrate renewable energy into their electric grids.<\/p>\n

The utility of the future, after distributed generation has achieved greater scale, will pay net metering customers for the full costs and benefits of the consumers\u2019 renewable energy systems.\u00a0 A recent report<\/a> lists the costs and benefits regulators should consider when setting net metering payments.[i]<\/a>\u00a0 The costs include: inability to recover the utility\u2019s existing costs under existing rate structures; interconnection costs; administrative and operational costs; and infrastructure costs to support distributed generation.\u00a0 The monetary benefits include: lower power delivery costs; lower power supply costs; lower system peak costs; and fuel flexibility benefits.\u00a0 The non-monetary benefits include:\u00a0 reduced toxic emissions and greenhouse gases; improved reliability; and local job creation.<\/p>\n

After distributed generation reaches greater scale, this approach will accomplish several worthy objectives.\u00a0 Distributed generation developers and owners will receive the fair value for distributed generation.\u00a0 Distributed generation owners will be paid for the benefits provided by their units, which are currently overlooked.\u00a0 Utilities will have a better opportunity to recover their costs and remain financially viable.\u00a0 The utility\u2019s cost of service will be fairly apportioned between consumers who own distributed generation and those who do not.\u00a0 With better information on distributed generation performance, new benefits will be recognized.\u00a0 These new benefits will increase the value of distributed generation and lower the cost of service for all utility consumers.\u00a0 This is how net metering and rooftop solar should function for the utility of the future.<\/p>\n","protected":false},"excerpt":{"rendered":"

Like the tide washing upon the shore, new technologies are gradually eroding electric utility revenues.\u00a0 These new products enable consumers to use cleaner energy and use it more efficiently.\u00a0 Electric utilities worry this trend will ravage their industry just as wireless technology convulsed the telecommunications industry.\u00a0 The utility industry urges its members to stem the …<\/p>\n","protected":false},"author":12461,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[177,27600],"tags":[50194,179,84852],"coauthors":[],"class_list":["post-4604","post","type-post","status-publish","format-standard","hentry","category-renewable-energy","category-utilities","tag-net-metering","tag-solar","tag-utilities"],"acf":[],"yoast_head":"\nNet Metering And Rooftop Solar For The Utility Of The Future - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net Metering And Rooftop Solar For The Utility Of The Future - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Like the tide washing upon the shore, new technologies are gradually eroding electric utility revenues.\u00a0 These new products enable consumers to use cleaner energy and use it more efficiently.\u00a0 Electric utilities worry this trend will ravage their industry just as wireless technology convulsed the telecommunications industry.\u00a0 The utility industry urges its members to stem the ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/\" \/>\n<meta property=\"og:site_name\" content=\"Energy Exchange\" \/>\n<meta property=\"article:published_time\" content=\"2013-07-24T14:29:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-07-24T14:45:56+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2013\/07\/John-Finnigan_jpg-199x300.jpg\" \/>\n<meta name=\"author\" content=\"John Finnigan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"John Finnigan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/\"},\"author\":{\"name\":\"John Finnigan\",\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/#\/schema\/person\/e4e06d0ac3c4cbe9f823ba21e6ab8b23\"},\"headline\":\"Net Metering And Rooftop Solar For The Utility Of The Future\",\"datePublished\":\"2013-07-24T14:29:23+00:00\",\"dateModified\":\"2013-07-24T14:45:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/\"},\"wordCount\":672,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2013\/07\/John-Finnigan_jpg-199x300.jpg\",\"keywords\":[\"Net metering\",\"Solar\",\"Utility Business Models\"],\"articleSection\":[\"Renewable Energy\",\"Utility Business Models\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/\",\"url\":\"https:\/\/blogs.edf.org\/energyexchange\/2013\/07\/24\/net-metering-and-rooftop-solar-for-the-utility-of-the-future\/\",\"name\":\"Net Metering And Rooftop Solar For The Utility Of The Future - 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