Back to OurEnergyLibrary search




Grid-Connected Distributed Generation: Compensation Mechanism Basics

Grid-Connected Distributed Generation: Compensation Mechanism Basics

Full Title: Grid-Connected Distributed Generation: Compensation Mechanism Basics
Author(s): Owen Zinaman, Alexandra Aznar, Carl Linvill, Naïm Darghouth, Timon Dubbeling, and Emanuele Bianco
Publisher(s): National Renewable Energy Laboratory
Publication Date: October 1, 2017
Full Text: Download Resource
Description (excerpt):

This short report defines compensation mechanisms for gridconnected, behind-the-meter distributed generation (DG) systems as instruments that comprise three core elements: (1) metering & billing arrangements, (2) sell rate design, and (3) retail rate design. This report describes metering & billing arrangements, with some limited discussion of sell rate design. We detail the three possible arrangements for metering & billing of DG: net energy metering (NEM); buy all, sell all; and net billing.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of OurEnergyPolicy.org, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

Sign up for our Press Release Distribution List

    Your Name (required)

    Your Email (required)

    Please sign me up to receive press releases from OurEnergyPolicy.org.