Policy Profile

Value Of Energy Tariff

Policy description:

Value of Solar Tariffs (VOSTs) have arisen out of the debate over net metering. This policy document expands the scope beyond VOST to look at a “Value of Energy Tariff”. In this way, value is determined by the characteristics of energy provided to the grid, rather than from a specific technology. Much of the literature and data we have to draw from for this policy brief, however, is derived from state policy experience with VOST and related studies. On one hand, utilities have claimed that net metering amounts to a subsidy of solar owners from non-solar owners because the kilowatt hour (kWh) credited through a net metering policy credits not only the generation, but also the portion of the rate that is used to pay for transmission and distribution infrastructure. Solar advocates have countered that the value of the power delivered from a solar system is much higher than the credit a solar generator receives. For more information, see the full policy brief.

Download Full Policy Brief View Policy Component Questions

  1. Does the policy exist?
  2. Is state studying or has state studied a value of energy tariff or similar mechanism?
  3. Was the policy implemented by the state?
  4. Is retail net metering the minimum value and does value of energy tariff take the place of net metering for payment (if its higher)?
  5. Does the value calculation include environmental and / or health benefits?