Current Experience With Net Metering Programs

Net metering is a utility metering practice that encourages direct consumer investment in renewable energy technologies. Laws and regulations that establish net metering practices now exist in 22 states. Net metering enables electricity customers with small generators to receive a higher value for some or all of the electricity they generate. This is accomplished by allowing the electric meters of such customers to turn backward when there is more generation than demand. It effectively allows customers with small generators to use the electricity they generate to offset their usage over an entire billing period. This paper reports on the current status of net metering laws and rules in the United States. In particular, the extent of the net metering authority in each state is highlighted. Differing requirements for grid-interconnection have introduced significant variations in the actual implementation of net metering programs. Interconnection requirements from specific utilities are collected to understand how net metering programs have been affected.