The review, from the Environment America Research and Policy Center, looked at 11 previous studies of net metering’s effects on both the grid and on society as a whole, all of which found that owners of grid-connected solar arrays offered net benefits to the electricity system, including reduced environmental compliance costs, reduced costs in capital investments, and in avoided energy costs. In particular, the studies determined the median value of solar power as being “nearly 17 cents per unit,” which contrasts with the US average retail electricity rate of about 12 cents per kWh, which means that not only has solar net metering not been harmful to markets, but that utilities have actually been underpaying for the use of this solar electricity.
“The solar studies reviewed in this report confirm that huge amounts of solar have already been developed without paying the full value that solar brings. Not only does that mean that solar customers have likely been subsidizing non-solar customers and the utility, but that over the long term, continued development of solar promises downward pressure on electric rates for all.” – Karl Rábago, Executive Director of the Pace Energy and Climate Center
In addition to the more obvious solar benefits, such as avoided energy costs and reduced capital investment costs, the review also pointed to distributed solar as being important in grid resiliency and in helping to stabilize electricity prices by mitigating some of the fluctuation in fossil fuel prices, thereby reducing financial risks and saving money for all grid users.
The review also makes a great case for the increased and widened adoption of net metering policies in order to keep up the momentum of solar growth in the US.
“Net metering is a critical tool to ensure fair compensation for owners of solar energy systems and to continue to fuel the growth of solar energy. Public officials should support and strengthen net metering as sound public policy to stimulate private investment and job growth, and to encourage utilities to diversify and strengthen the grid.” – Shining Rewards
The document suggests that states should “lift arbitrary caps” on net metering in fast-growing solar markets, should include environmental and societal benefits when evaluating the benefits and costs of net metering programs, “consider the simplicity of net metering” when looking at programs that will compensate customers for their solar production, and “ensure that all people can take advantage of net metering policies” with virtual net metering programs for homes that aren’t able to install solar.
“While some utilities claim they’re subsidizing solar panel owners, our report shows the opposite is probably true. If anything, utilities should be paying people who go solar more, not less.” – Rob Sargent, co-author of the report, and senior program director at Environment America