The Future of Net Metering Solar Power International Chicago, IL Jason B. Keyes October 22 & 23, 2013 The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
A growing number of utilities are calling for reform or abolition of net metering. They call it a “free ride” to use utility wires and not pay for the service. IREC, along with other non-profits and the solar industry, know net metering can be fair and balanced. It provides benefits that outweigh utility costs in most cases, particularly by deferring new utility construction. It's a hot button topic. A rundown of what's happening in key states, including a deeper analysis of the issue and insight into how to achieve a fair valuation of all of net metering's benefits, was covered by Jason to standing-room crowds
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The Future of Net Metering
Solar Power International Chicago, IL
Jason B. Keyes October 22 & 23, 2013
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Definition
Net metering is a billing mechanism that credits solar system owners for electricity exported onto the electricity grid. Under the simplest implementation of net metering, a utility customer’s billing meter runs backward as solar electricity is generated and exported to the electricity grid and forward as electricity is consumed from the grid.
Net metering includes this . . .
Courtesy SolarCity
and this . . . .
Courtesy SolarCity
and, in some sense, even this (Nellis AFB)
Key Parameters
• Facility Size
• Program Cap
• Fees
• Third Party Ownership
• And – sunshine, utility rates, incentives, interconnection procedures
Net Metering Facility Size Caps www.dsireusa.org / July 2013
43 states, + Washington DC
& 4 territories have adopted a net
metering policy.
State Policy
Voluntary Utility Program(s) only
U.S. Territories
www.dsireusa.org
< 1 %
< 3 %
< 5 %
≥5%
Unlimited
DC
Net Metering Program Caps (percent of utility peak demand)
Retail Power Purchase Agreements
Status unknown or undetermined
Authorized by state or otherwise currently in use (see notes on following slide)
Apparently disallowed by state or otherwise restricted by legal barriers
Currently under judicial or other form of legal review
RI: May be limited to certain sectors
UT: Limited to certain sectors
AZ: Limited to certain sectors
September 2013
2013 Net Metering Grades (www.freeingthegrid.org)
• 2007 • 2008 • 2009 • 2010 • 2011 • 2012 • 2013
NET METERING
FILTER NET METERING BY…
A B C D F N/A
DC
Obstacles to NEM Program Expansion
• Concerns about cost – Utility claims of cost shifting to non-NEM customers
– Competing valuation studies
• Concerns about safety and reliability – Shift discussion to interconnection procedures
– NEM is just a billing arrangement
Net metering is a “disruptive challenge” that is leading to “declining utility revenues, increasing costs and lower profitability potential” that must be addressed.
Edison Electric Institute
Next Steps
• Valuation Studies – See IREC’s new “Regulator’s Guidebook” (www.irecusa.org)
– Need to validate NEM cost-effectiveness
– Need to include all benefits
• Rate Design – Action shifting to rate design in utility rate cases
– Need to be involved in each major case – huge cost
• Alternative Models – Value of Solar Tariff, Feed-in Tariff, shared solar