New Study Shows Net Metering Benefits All Customers

A new analysis from the Brookings Institution shows that net metering benefits both solar customers and non-solar customers alike.

Net metering – the policy that allows homeowners with solar panel systems to sell their excess electricity back to their utilities – has recently been a contentious issue in a small number of states, most notably in Nevada.

The rationale for the Public Utility Commission in Nevada to eliminate favorable net metering rules was that solar customers were shifting the costs associated with maintaining the grid to their neighbors that didn’t have solar.
net metering for solar power
On the contrary, the Brookings report shows that net metering actually provides a $36 million benefit to ALL ratepayers in Nevada. This is done through the added benefits of reduced infrastructure repair and environmental compliance costs. Homeowners with solar also help reduce the amount of future electric capacity investment that utilities must make.

In fact, the Brookings study also highlighted previous studies that all showed a net benefit for net metering. For example, the Environment America Research and Policy Center reviewed 11 net metering studies and found that the average “value of solar” was 17 cents per kilowatt hour compared to the nation’s average of 12 cents per kilowatt hour.

These findings do not come as a surprise to those in the solar industry and those who could take an objective viewpoint. It was abundantly clear that the whole “cost shifting” argument against net metering was simply utilities’ best shot at fighting competition. The Brookings analysis and others to surely come out will show how very illegitimate these arguments were.

The truth of the matter is quite obvious; residential solar power represents a significant threat to utilities’ traditional business model. Continued deployment of distributed solar power in the form of residential rooftop solar could put a serious dent in the profit margins of energy companies everywhere.

Ways that both utilities and ratepayers can benefit from the continued use of net metering was also mentioned by the study. However, the specifics of potential solutions have yet to be worked out. What is clear is that residential solar power is not going anywhere. Utilities must find a way to incorporate more renewable energy from its customers while updating the grid at the same time.

As recently mentioned in other posts, utilities will also see less revenue as energy storage systems will get deployed in much larger numbers in the coming years. Challenges for the traditional electric utility model will continue to mount as homeowners and business owners alike begin to opt for power ownership instead of renting in perpetuity.

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4 Responses to New Study Shows Net Metering Benefits All Customers

  1. Renegade Slugger says:

    In conclusion, the new study conducted on net metering clearly demonstrates that it benefits all customers. The findings reveal that net metering not only promotes the use of renewable energy sources but also reduces overall energy costs for both residential and commercial customers. This supports the notion that net metering is a viable and effective solution for achieving a sustainable and affordable energy future.

  2. pistol hydro says:

    In conclusion, the new study on net metering clearly demonstrates that it benefits all customers. This finding is significant as it dispels any misconceptions or doubts about the advantages of net metering. The study provides concrete evidence that net metering not only supports the growth of renewable energy but also leads to cost savings for all customers. With this information, policymakers and utility companies can make informed decisions to promote and expand net metering programs, ensuring a more sustainable and affordable energy future for everyone.

  3. Dahlia says:

    In conclusion, the new study on net metering clearly demonstrates that it benefits all customers. Net metering allows customers to generate their own electricity and receive credits for any excess energy they produce. This not only reduces their own electricity bills but also helps to lower overall electricity costs for all customers. Furthermore, net metering promotes the use of renewable energy sources, contributing to a more sustainable and environmentally friendly energy system. Overall, the findings of this study highlight the importance and positive impact of implementing net metering policies.

  4. the flying mouse says:

    In conclusion, the new study clearly demonstrates that net metering benefits all customers. This finding is significant as it confirms the positive impact of net metering on both the environment and the economy. By allowing customers to generate their own clean energy and receive credits for the excess electricity they produce, net metering promotes renewable energy adoption while reducing electricity costs for all customers. This study provides valuable evidence for policymakers and utility companies to continue supporting and expanding net metering programs, ultimately leading to a more sustainable and cost-effective energy future for everyone.

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