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Net metering
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== History == Net metering originated in the United States, where [[small wind turbine]]s and solar panels were connected to the electrical grid, and consumers wanted to be able to use the electricity generated at a different time or date from when it was generated. The first two projects to use net metering were an apartment complex and a solar test house in Massachusetts in 1979.<ref>{{cite web|url=https://cleantechnica.com/2015/09/06/net-metering-history-logic-part-1/|title=Net Metering History & Logic -- Part 1|date=2015-09-06|website=CleanTechnica|language=en-US|access-date=2019-09-07}}</ref> Minnesota is commonly cited as passing the first net metering law, in 1983, and allowed anyone generating less than 40 kW to either roll over any credit to the next month, or be paid for the excess. In 2000 this was amended to compensation "at the average retail utility energy rate". This is the simplest and most general interpretation of net metering, and in addition allows small producers to sell electricity at the retail rate.<ref name=":0">{{cite web |url=http://www.dsireusa.org/solar/incentives/incentive.cfm?Incentive_Code=MN01R&re=1&ee=1 |title=Minnesota |publisher=Dsireusa.org |access-date=2013-12-15 |url-status=dead |archive-url=https://web.archive.org/web/20121019232315/http://www.dsireusa.org/solar/incentives/incentive.cfm?Incentive_Code=MN01R&re=1&ee=1 |archive-date=2012-10-19 }}</ref> Utilities in Idaho adopted net metering in 1980, and in Arizona in 1981. Massachusetts adopted net metering in 1982. By 1998, 22 states or utilities therein had adopted net metering. Two California utilities initially adopted a monthly "net metering" charge, which included a "standby charge", until the Public Utilities Commission (PUC) banned such charges.<ref name=currentnm>{{cite web |url=http://apps3.eere.energy.gov/greenpower/resources/pdfs/current_nm.pdf |title=Current Experience With Net Metering Programs (1998) |access-date=2013-12-15 |url-status=dead |archive-url=https://web.archive.org/web/20130521074227/http://apps3.eere.energy.gov/greenpower/resources/pdfs/current_nm.pdf |archive-date=2013-05-21 }}</ref> In 2005, all U.S. utilities were required to consider adopting rules offering net metering "upon request" by the [[Energy Policy Act of 2005]]. Excess generation is not addressed. As of 2013, 43 U.S. states have adopted net metering, as well as utilities in 3 of the remaining states, leaving only 4 states without any established procedures for implementing net metering.<ref>{{cite web |url=http://www.dsireusa.org/documents/summarymaps/Net_Metering_map.pdf |title=Net Metering Map |access-date=2013-12-15 |url-status=dead |archive-url=https://web.archive.org/web/20140703061348/http://dsireusa.org/documents/summarymaps/net_metering_map.pdf |archive-date=2014-07-03 }}</ref> However, a 2017 study showed that only 3% of U.S. utilities offer full retail compensation for net metering with the remainder offering less than retail rates, having credit expire annually, or some form of indefinite rollover.<ref name=":20">{{Cite journal |last=Shelly |first=Chelsea |display-authors=etal |title=Examining interconnection and net metering policy for distributed generation in the United States |url=https://www.academia.edu/35065588|journal=Renewable Energy Focus |volume=22-23 |pages=10–19 |doi=10.1016/j.ref.2017.09.002 |year=2017 |bibcode=2017REneF..22...10S }}</ref> Net metering was slow to be adopted in Europe, especially in the United Kingdom, because of confusion over how to address the [[value added tax]] (VAT). Only one utility company in Great Britain offers net metering.<ref>{{cite web |url=http://www.greenpeace.org.uk/files/pdfs/migrated/MultimediaFiles/Live/FullReport/1508.pdf |title=SolarNet and Net Metering |access-date=2013-12-15 |archive-url=https://web.archive.org/web/20130603060349/http://www.greenpeace.org.uk/files/pdfs/migrated/MultimediaFiles/Live/FullReport/1508.pdf |archive-date=2013-06-03 |url-status=dead }}</ref> The [[United Kingdom]] government is reluctant to introduce the net metering principle because of complications in paying and refunding the value added tax that is payable on electricity, but pilot projects are underway in some areas. In [[Canada]], some provinces have net metering programs. In the Philippines, Net Metering scheme is governed by Republic Act 9513 (Renewable Energy Act of 2008) and its implementing rules and regulation (IRR). The implementing body is the Energy Regulatory Commission (ERC) in consultation with the National Renewable Energy Board (NREB). Unfortunately, the scheme is not a true net metering scheme but in reality a net billing scheme. As the Dept of Energy's Net Metering guidelines say, "Net-metering allows customers of Distribution Utilities (DUs) to install an on-site Renewable Energy (RE) facility not exceeding 100 kilowatts (kW) in capacity so they can generate electricity for their own use. Any electricity generated that is not consumed by the customer is automatically exported to the DU's distribution system. The DU then gives a peso credit for the excess electricity received equivalent to the DU’s blended generation cost, excluding other generation adjustments, and deducts the credits earned to the customer’s electric bill."<ref>{{cite web|title = Net Metering Website - 1. How net-metering works: Understanding the basics of policy, regulation and standards |url=https://www.doe.gov.ph/netmeteringguide/index.php/1-how-net-metering-works-understanding-the-basics-of-policy-regulation-and-standards |website=doe.gov.ph |access-date = 2015-06-01 |first = Dart |last = Tiglao |url-status = dead |archive-url = https://web.archive.org/web/20150511193812/http://www.doe.gov.ph/netmeteringguide/index.php/1-how-net-metering-works-understanding-the-basics-of-policy-regulation-and-standards|archive-date = 2015-05-11 }}</ref> Thus Philippine consumers who generate their own electricity and sell their surplus to the utility are paid what is called the "generation cost" which is often less than 50% of the retail price of electricity.
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