NRRI 19-01 Review of State Net Energy Metering

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Create Date March 5, 2019
Last Updated May 6, 2019

The objective of this paper is to summarize actions now being taken in many states to change rate designs for
distributed energy resources (DER) on the customer side of the meter. Net energy metering (NEM) has been the
most common rate design used for customers with small-scale generators that provide what is sometimes known
as self-service power. Recently, there has been considerable interest in finding alternatives to net metering by
legislatures and public utility commissions (PUCs), with some related deliberations underway or recently concluded
in at least 48 states and the District of Columbia. These actions sometimes arise from preexisting legislative or
regulatory requirements that trigger reviews when the total installed NEM system capacity or energy production,
either for individual utilities or statewide, reaches a predetermined threshold. In other cases, regulatory reviews have
been requested by utility companies through proposals to replace net-metering with other alternatives.