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Net metering
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===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>
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