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Expert Insight

Alternatives to Net Metering: A Pathway to Decentralized Electricity Markets

Author(s): Catrina Rorke
Director of Energy Policy & Senior Fellow
The R Street Institute
Date: March 7, 2016 at 3:30 PM

The traditional regulated monopoly model for electric utilities is outdated. It limits innovation, product and service development in the power sector. One example is the regulatory treatment of distributed energy resources (DER). In 46 states and D.C., customers are permitted to sell back excess energy generated from DERs through a process called net metering. As DERs like battery storage and rooftop solar penetrate the market, they increasingly expose cross-subsidies inherent in traditional utility rate design. Standard net metering policies attempt to serve a diverse customer base within this rigid framework and cannot properly capture the costs and benefits to the… [more]

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