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.

** Please be advised that the policy information available from Freeing the Grid was last updated in 2016 and state policies may have changed.

Download Full Policy Brief View Policy Component Questions

  1. Used existing research by Freeing the Grid to determine net metering policy components.