The Solar America Board for Codes and Standards (SolarABCS, Cocoa, Florida, U.S.) has issued a report which examines the rate impacts of net metering policies on utility rates for non-participating customers.

"A Generalized Approach to Assessing the Rate Impacts of Net Energy Metering" puts forth a methodology for the valuation of net-metering which it says is focused on best practices. SolarABCS specifically argues that assessments should include all the benefits of distributed generation, including long-term benefits from the deferral of utility generation on transmission and distribution facilities.

"At present, a detailed analysis of the potential rate impacts of net metering has only begun to be developed," states SolarABCS. "There is disagreement over the appropriate inputs needed for such an analysis."

"Despite this disagreement, efforts to rigorously quantify the rate impacts of NEM programs have begun to move forward in Arizona, California, Texas, and elsewhere. It is anticipated that these efforts will facilitate the development of a consensus view of the components that need to be considered in the valuation of renewable energy resources such as distributed solar energy systems."


Net metering to become more important as PV prices fall

Net metering policies have been enacted in 43 U.S. states, Washington D.C. and Puerto Rico. And while the report notes that implementation varies by political jurisdiction, the basic structure is to allow the delivery of customer-generated electricity to the utility in exchange for an equal amount of electricity to the customer at a later time.

The report states that net metering is a critical support for customer investment in distributed generation. SolarABCS also notes that such policies are likely to become more important as the cost of solar photovoltaics (PV), which makes up the bulk of distributed generation in the U.S., continues to decline.

While the report does not assess impacts for any particular state program, SolarABCS states that the report will assist state policy makers, utilities, regulators and other stakeholders to perform their own evaluations.

SolarABCS describes itself as a collaborative effort between universities, standards organizations, research organizations and the U.S. solar industry. The program is funded by the U.S. Department of Energy.

2012-02-22| Courtesy: SolarABCS; Image: dsireusa.org | solarserver.com © Heindl Server GmbH

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