THE SUCCESS OF NET METERING

Grading the Net-Metering Program, One State at a Time; A consortium of U.S. net-metering advocates have graded each state for its net metering and grid interconnection policies to see who’s naughty or nice
Ucilla Wang, November 24, 2009 (Greentech Media)

"A group of net-metering advocates in the United States has released a report grading each state's policies on allowing residents and businesses to get compensated for feeding excessive electricity from their renewable energy systems to the electric grid.

"…[Freeing the Grid, from the Network for New Energy Choices, Vote Solar, the Interstate Renewable Energy Council, the Solar Alliance and the North Carolina Solar Center,] gave 15 states an "A" or "B" for making it relatively easy and affordable to connect their solar, wind or other types of systems to the grid…[I]n 2007, only one state got the high mark…[Also, the new] report gave 27 states an "A" or "B" for net-metering rules that allow residents to get credit for sending unused electricity to the grid. That's also a big jump from 2007, when 13 states won that recognition…"

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"…[M]any states with mandates for their utilities to boost their offerings of renewable electricity also have incentives in place to entice consumers to install renewable energy systems. Net-metering policies exist in 42 states and Washington, D.C…California, which has been ahead of other states in adopting policies and subsidies that are friendly to renewable energy, has scored well…Texas, the big wind energy producing state, has no net-metering program…States that flunked in…[net metering or interconnection] included Hawaii, Idaho, Kansas, Kentucky, Louisiana, Wyoming, Utah and Minnesota.

"Net-metering policies are meant to promote generating solar, wind or biomass electricity where it's consumed. Solar energy system owners could export extra electricity to the grid and get credits on their bills that are equivalent to the retail price…But writing and deploying effective net-metering programs is far from simple. And whether they are cost effective is subject to debate."

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"In California, a legislative effort to raise the cap for net-metering customers prompted utilities to question whether net metering benefits a small group of people at the expense of those who can't afford or choose not to install solar. Utilities typically recoup the cost of the programs…[with] rate hikes…to their overall customer base…The California Public Utilities Commission is due to release a report in January that will examine this and other issues…Efforts to raise the net-metering cap in California didn't succeed…

"…[In the report] good interconnection standards refer to rules that clearly spell out the technical and legal mandates. They also do not impose expensive fees or add costs by requiring devices such as redundant disconnect switches, which the report said adds to the cost of installing solar without providing the intended safety assurances…Good net-metering rules should make it easy for consumers to earn credits from their utilities for feeding excessive electricity to grid…[and] advocates want states to forego restrictions on the size of solar energy systems or the types of customers…"