Is Solar Net Metering Cost-Effective? Compared to What?

Renewable net metering is an electric energy rate structure for utility customers who operate their own on-site self-generation power systems such as photovoltaic systems or wind, and receive the full retail value of the electricity their system generates. The customer's electric meter keeps track of how much electricity is consumed by the customer, and how much excess electricity is generated by the system and sent back into the electric utility grid.There is some view that net metering reduces the utility revenue, and should therefore be reduced or eliminated. Many electric utilities in the U.S. today are eliminating, or trying to eliminate, net metering for renewable energy such as solar photovoltaic (PV) or wind. However, various cities and states have found that solar PV is worth more than the retail rates of electricity (cost per kWh).This article discusses the issues of allowing net metering and explains what is going on in our regulatory environment, and what is the true answer whether renewable net metering helps or hurts typical utility revenue.