Net Metering in the US - iea-pvps.org - Home · · 2014-10-03from qualified non-utility power...
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Paula Mints
SPV Market Research
www.spvmarketresearch.com
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Net Metering in the USIEA PVPS
Self Consumption Business Models
Technical & Economic Challenges
September 22, 2014
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“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.” Albert Einstein
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3US % Electricity Net Generation by Sector (million kWh) 2013 & January-April 2014
In the US, Natural Gas is considered a relatively clean pseudo renewable technology
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4US Electricity Price Averages by Segment for Select States Mid-2014
Average Electricity Rates/kWh Residential Commercial Industrial Transportation
Arizona $0.1165 $0.0963 $0.0649
California $0.1518 $0.1368 $0.1068 $0.0822
Colorado $0.1183 $0.0990 $0.0721 $0.1077
Connecticut $0.1771 $0.1475 $0.1223 $0.0867
District of Columbia $0.1298 $0.1272 $0.0866 $0.0981
Florida $0.1183 $0.0997 $0.0798 $0.0922
Hawaii $0.3782 $0.3481 $0.3069
Massachusetts $0.1722 $0.1449 $0.1283
Nevada $0.1290 $0.0939 $0.0594 $0.0851
New Jersey $0.1560 $0.1351 $0.1262 $0.1053
New Mexico $0.1160 $0.0982 $0.0641
New York $0.2047 $0.1617 $0.0686 $0.1345
North Carolina $0.1099 $0.0878 $0.0635 $0.0802
Oregon $0.1026 $0.0883 $0.0569 $0.0897
Pennsylvania $0.1309 $0.0994 $0.0799 $0.0797
South Carolina $0.1212 $0.1014 $0.0626
Tennessee $0.1024 $0.1041 $0.0632 $0.1358
Texas $0.1146 $0.0812 $0.0597 $0.0510
Vermont $0.1746 $0.1461 $0.1028
Average Electricity Rates/kWh Residential Commercial Industrial Transportation
US Average Electricity Rates/kWh 2013 $0.1178 $0.1002 $0.0658 $0.1008
US Average Electricity Rates/kWh 2014 $0.1212 $0.1052 $0.0691 $0.1015
% Increase 2013 to 2014 3% 5% 5% 1%
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Net Metering in the US
Net metering remains crucial to the advancement of distributed generation solar in the US.
Currently utilities across the US are pushing back on net metering.
The EPAct 2005 required PUCs and utilities around the country to review net metering and interconnection standards.
The development and implementation of standards were left to the discretion of regulators and the utilities
(IEEE 1547 was recommended for interconnection).
While non-binding, this action did raise the profile of net-metering and interconnection issues,
which is critical for grid-connected systems. Predecessor to net metering,
the Public Utility Regulatory Policies Act of 1978, mandated that utilities were to procure electricity
from qualified non-utility power producers at the utilities avoided cost rate.
This avoided cost, typically the fuel costs incurred by a traditional fossil fuel plant,
is insufficient to make solar power projects viable.
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Net Metering in the US
To repeat, the ability to net meter is as crucial as interconnection to the continued deployment of residential
and commercial PV systems in the US. Most utility net metering programs have limits.
These limits, of course, limit the potential of PV system deployment.
With net metering the utility either credits or pays for the electricity that is fed into its grid.
In some cases the utility absorbs the excess electricity, in some cases the utility rolls the excess over into another period
and in some cases the system owner is paid a set rate for the excess electricity (similar in theory to a feed in tariff).
Different utilities have limits as to how much electricity they will allow to be net metered.
Forty three states, Washington DC and four territories allow net metering.
Several states, including California and Vermont, have increased their net metering allowance.
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Net Metering
State policy
Voluntary utility program(s) only
www.dsireusa.org / September 2014
* State policy applies to certain utility types only (e.g., investor-owned utilities)
WA: 100
OR: 25/2,000*
CA: 1,000*
MT: 50*
NV: 1,000*
UT: 25/2,000*
AZ: 125% of demand
ND: 100*
NM: 80,000*
WY: 25*
HI: 100KIUC: 50
CO: 120% of demandco-ops & munis: 10/25
OK: 100*
MN: 40
AR: 25/300
MI: 150*WI: 20*
MO: 100
IA: 500*
IN: 1,000*
IL: 40*
FL: 2,000*
KY: 30*
OH: no limit*
GA: 10/100
WV: 25/50/500/2,000
NC: 1,000*
VT: 20/250/2,200
VA: 20/500*
NH: 1,000
MA: 60/1,000/2,000/10,000*
RI: 5,000*
CT: 2,000/3,000*
NY: 10/25/500/1,000/2,000*
PA: 50/3,000/5,000*
NJ: no limit*
DE: 25/100/2,000co-ops & munis: 25/100/500
MD: 2,000
DC: 1,000/5,000/120% of demand
Note: Numbers indicate individual system capacity limit in kW. Some limits vary by customer type, technology and/or application. Other limits might also apply.
This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.
NE: 25
KS: 15/100/150*
ME: 660co-ops & munis: 100
AK: 25*
43 states + DC,
AS, Guam, USVI, & PR have adopted a net metering policy
DC
Note: Net Metering rules are being actively
discussed in over a dozen state public service
& utility commissions across the country.
State: kW limit residential/ kW limit nonresidential
American Samoa: 30Guam: 25/100Puerto Rico: 25/1,000/5,000Virgin Islands: 20/100/500
U.S. Territories:
LA: 25/300
http://www.dsireusa.org/summarymaps/index.cfm?ee=0&RE=0
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Interconnection Policies..www.dsireusa.org / February 2013..
43 States,
+ Washington DC and Puerto Rico, have adopted an interconnection
policy.
Notes: Numbers indicate system capacity limit in kW. Some state limits vary by customer type (e.g., residential versus non-residential).“No limit” means that there is no stated maximum size for individual systems. Other limits may apply. Generally, state interconnection standards apply only to investor-owned utilities.
http://www.dsireusa.org/summarymaps/index.cfm?ee=0&RE=0
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10US Supply/Demand Growth, 2008 -2016
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11US Solar State Market Share 2013/2014
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SPV Market Research
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Paula Mints, Founder, Chief Market Research Analyst
www.spvmarketresearch.com
408-221-1564
“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.” Albert Einstein
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©Copyright 2014 SPV Market Research do not reproduce without permission
Paula Mints, Founder, Chief Market Research Analyst
1408-221-1564, [email protected]
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