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


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.


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


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

http://www.dsireusa.org/


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US Application Breakdown


10US Supply/Demand Growth, 2008 -2016


11US Solar State Market Share 2013/2014


SPV Market Research

Quality solar market research products including end user research and analysis as well as supply (manufacturer), demand (installers and installations), pricing, technology and grid connected/off grid application Company Motto: Clients as partners – working towards mutual success

SPV Market Research is committed to releasing no analysis before all the data are gathered, bias is eliminated, and objectivity is achieved

Paula Mints, Founder, Chief Market Research Analyst


[email protected]

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

12

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mailto:[email protected]


Paula Mints, Founder, Chief Market Research Analyst

1408-221-1564, [email protected]

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net metering in the us - iea-pvps.org - home · · 2014-10-03from qualified non-utility power...

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