Editing Net metering (section)

== Controversy ==
Net metering is controversial as it affects different interests on the grid.<ref>{{cite web|last1=Buhayar | first1=Noah |url=https://www.bloomberg.com/features/2016-solar-power-buffett-vs-musk/ |website=[[Bloomberg Businessweek]] |date=January 28, 2016| title=Who owns the sun?}}</ref> A report prepared by Peter Kind of Energy Infrastructure Advocates for the trade association Edison Electric Institute stated that [[distributed generation]] systems, like [[rooftop solar]], present unique challenges to the future of electric utilities.<ref>{{cite web |first=Peter |last=Kind |url=http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf |title=Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business |work=[[Edison Electric Institute]] |archive-url=https://web.archive.org/web/20130411194651/http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf |archive-date=11 April 2013 }}</ref> Utilities in the United States have led a largely unsuccessful campaign to eliminate net metering.<ref>{{cite news|url=https://www.washingtonpost.com/national/health-science/utilities-sensing-threat-put-squeeze-on-booming-solar-roof-industry/2015/03/07/2d916f88-c1c9-11e4-ad5c-3b8ce89f1b89_story.html |title=Utilities wage campaign against rooftop solar |newspaper=The Washington Post |date=2015-03-07 |access-date=2019-12-29}}</ref>

===Benefits===
Renewable advocates{{who|date=June 2019}} point out that while distributed solar and other [[Efficient energy use|energy efficiency]] measures do pose a challenge to electric utilities' existing business model, the benefits of distributed generation outweigh the costs, and those benefits are shared by all ratepayers.<ref>{{cite web|url=http://www.renewableenergyworld.com/rea/blog/post/2013/01/new-state-study-demonstrates-benefit-to-ratepayers-of-net-metering|title="New State Study Demonstrates Net Metering Benefit for Ratepayers"|website=renewableenergyworld.com"|archive-url=https://web.archive.org/web/20150510005109/http://www.renewableenergyworld.com/rea/blog/post/2013/01/new-state-study-demonstrates-benefit-to-ratepayers-of-net-metering|archive-date=2015-05-10}}</ref> Grid benefits of private distributed solar investment include reduced need for centralizing power plants and reduced strain on the utility grid. They also point out that, as a cornerstone policy enabling the growth of rooftop solar, net metering creates a host of societal benefits for all ratepayers that are generally not accounted for by the utility analysis, including: public health benefits, employment and downstream economic effects, market price impacts, grid security benefits, and water savings.<ref>{{cite web|url=http://www.oursolarrights.org/info-net-metering/net-metering-benefits/|title=Net Metering Benefits|website=oursolarrights.org}}</ref>

An independent report conducted by the consulting firm Crossborder Energy found that the benefits of California's net metering program outweigh the costs to ratepayers. Those net benefits will amount to more than US$92 million annually upon the completion of the current net metering program.<ref>{{Cite web |url=http://votesolar.org/wp-content/uploads/2013/01/Crossborder-Energy-CA-Net-Metering-Cost-Benefit-Jan-2013-final.pdf |title=votesolar.org |access-date=2014-01-06 |archive-date=2013-10-27 |archive-url=https://web.archive.org/web/20131027113042/http://votesolar.org/wp-content/uploads/2013/01/Crossborder-Energy-CA-Net-Metering-Cost-Benefit-Jan-2013-final.pdf |url-status=dead }}</ref>

A 2012 report on the cost of net metering in the State of California, commissioned by the California Public Utilities Commission (CPUC), showed that those customers without distributed generation systems will pay US$287 in additional costs to use and maintain the grid every year by 2020. The report also showed the net cost will amount to US$1.1 [[billion]] by 2020.<ref name="autogenerated1">{{cite web |url=http://www.cpuc.ca.gov/NR/rdonlyres/75573B69-D5C8-45D3-BE22-3074EAB16D87/0/NEMReport.pdf |title=cpuc.ca.gov |access-date=2013-12-04 |archive-url=https://web.archive.org/web/20131215184033/http://www.cpuc.ca.gov/NR/rdonlyres/75573B69-D5C8-45D3-BE22-3074EAB16D87/0/NEMReport.pdf |archive-date=2013-12-15 |url-status=dead }}</ref> Notably, the same report found that solar customers do pay more on their power bills than what it costs the utility to serve them (Table 5, page 10: average 103% of their cost of service across the three major utilities in 2011).<ref name="autogenerated1"/>

===Drawbacks===
Many electric utilities state that owners of generation systems do not pay the full cost of service to use the grid, thus shifting their share of the cost onto customers without distributed generation systems.<ref>{{cite web|url=http://www.bizjournals.com/phoenix/blog/energy-inc/2013/11/aps-solar-advocates-battle-for-net.html?page=all |title=APS, solar advocates battle for net metering before ACC - Phoenix Business Journal |publisher=Bizjournals.com |date=2013-11-13 |access-date=2013-12-15}}</ref> Most owners of rooftop solar or other types of distributed generation systems still rely on the grid to receive electricity from utilities at night or when their systems cannot generate sufficient power.<ref>{{cite web |url=http://www.azenergyfuture.com/net-metering/ |title=Arizona's Energy Future - Net Metering |publisher=Azenergyfuture.com |access-date=2013-12-15 |archive-url=https://web.archive.org/web/20131215181848/http://www.azenergyfuture.com/net-metering/ |archive-date=2013-12-15 |url-status=dead }}</ref>

A 2014 report funded by the [[Edison Electric Institute#Foundation|Institute for Electric Innovation]]<ref name="iei_nem">{{cite web|url=https://www.edisonfoundation.net/iei/publications/Pages/default.aspx/IEI_NEM_Subsidy_Issues_EXECSUMMARY.pdf|title=Publications|website=edisonfoundation.net}}</ref> (which engages in lobbying for the benefit of its member electricity companies) claims that net metering in California produces excessively large subsidies for typical residential rooftop solar photovoltaic (PV) facilities. These subsidies must then be paid for by other residential customers, most of whom are less affluent than the rooftop solar PV customers. In addition, the report points out that most of these large subsidies go to the solar leasing companies, which accounted for about 75 percent of the solar PV facilities installed in 2013. The report concludes that changes are needed in California, ranging from the adoption of retail tariffs that are more cost-reflective to replacing net metering with a separate "Buy All - Sell All" arrangement that requires all rooftop solar PV customers to buy all of their consumed energy under the existing retail tariffs and separately sell all of their onsite generation to their distribution utilities at the utilities' respective avoided costs.<ref>{{cite web |url=http://www.edisonfoundation.net/iei/Documents/IEI_NEM_Subsidy_Issues_FINAL.pdf |title=Net Energy Metering: Subsidy Issues And Regulatory Solutions, full report |archive-url=https://web.archive.org/web/20200511110123/https://www.edisonfoundation.net/iei/documents/IEI_NEM_Subsidy_Issues_FINAL.pdf |archive-date=2020-05-11 |work=edisonfoundation.net }}</ref>