What is Net Metering?
Net metering is a policy that enables consumers who install solar systems on their properties to receive full retail credit for the surplus energy they provide to the electric grid. Utilities then sell this clean electricity at the retail rate to customers nearby. Using net metering, solar customers typically reduce a portion of the conventional electricity they buy from the utility, but not all of it. Homeowners, businesses, schools and other public agencies can all participate in net metering, which exists in 43 states. Net metering is the cornerstone policy for growing sustainable solar markets, and it has driven almost 100 percent of all rooftop solar deployment in the United States over the last three decades.
With net metering, consumers invest to generate and use their own solar energy, and they provide other ratepayers with clean energy and cost savings.
PRIVATE ECONOMIC INVESTMENTS FOR PUBLIC GOOD
Net metering is currently in place in 44 states. In California alone, net metering has leveraged $10 billion in private investment and will allow schools and public agencies to save $2.5 billion in energy costs over the next 30 years.
COST SAVINGS FOR EVERYONE
A study performed in January by Crossborder Energy found that net metering delivers more than $92 million in annual benefits to non-solar customers in California since it allows utilities to avoid costs from generating and delivering energy. Studies in Arizona, Colorado, and other states also highlight the financial benefits of net metering to non-solar ratepayers.
Net metering exports allow utilities to avoid the costs of generation and fuel, maintenance and upgrade of transmission and distribution infrastructure, transmission losses, capacity purchases, and compliance with state renewable portfolio standards, among other costs.
Net metering is the cornerstone policy for solar growth.