Policy Profile

Net Metering

Policy description:

Prior to net energy metering (NEM) policies, utility customers who installed a solar or other renewable energy system had two options for dealing with excess generation. First, they could certify the system as a qualifying facility under the Public Utility Regulatory Act (PURPA) of 1978 and sell energy at the utility’s avoided-cost rate. Alternatively, consumers could install batteries to store the energy produced by their systems to deliver the power when they needed it. With the advent of NEM, the economic incentives for installing distributed energy systems improved, making NEM one of the most important policy tools for supporting distributed generation. For more information, see the full policy brief.

Download Full Policy Brief View Policy Component Questions

  1. Are the state's regulated utilities required to offer a net metering program?
  2. Are all distributed generation technologies eligible to net meter?
  3. Are customer-generators credited at the full retail rate for excess power generation?
  4. Is net metering allowed for systems with a nameplate capacity equal to or greater than 2 megawatts or greater than 100% of a customer's average annual consumption?
  5. Is the program uncapped?
  6. Does the program provide for perpetual rollover of excess generation credits?