Vol. 17, No. 4

Sizing Up Net Metering

In the U.S., net energy metering (NEM) has served as an important plank of a broader policy platform that 

states have used to facilitate the development of customer-sited renewables. NEM policies in line with best practices 

allow individuals, businesses, non-profits, schools and government customers to receive full kWh-for-kWh credit for the electricity and benefits their on-site renewable energy systems provide.

Markets for distributed renewables can grow extremely fast. In order for states to sustain these markets, the policies that support them must be flexible. NEM, which has been adopted by 43 U.S. states, is perhaps the most flexible policy tool used to sustain the growth of customer-sited renewables. Policymakers have not been shy about amending NEM policies to accommodate more growth. To illustrate, 18 states have raised their original aggregate capacity limit for NEM at least once, and nine states have done so more than once. New York raised its aggregate cap for the fourth time - for PV and certain other renewables - from 1 percent to 3 percent last year. California, still the nation's largest rooftop PV market, has expanded its aggregate cap seven times.

Read more at irecusa.org.