Net Metering in the world Jan Knaack, Senior Project Manager Buenos Aires, Dec. 15th, 2015 Bundesverband Solarwirtschaft e.v. (BSW-Solar)
Basic problem of PV electricity generation Demand and supply do no coincide
Net-Metering as solution to save non-consumed energy and compensate producer 4
Net Metering design components 7 Eligibility Allowable technology Customer type System size limitations Limits on size of eligible residential and commercial systems Is oversizing of systems allowed? Period of crediting Monthly, annual, or continuous crediting Crediting of net excess generation Retail or wholesale rate Cap on aggregate net metered capacity Additional fees (if any) Renewable Energy Credit (REC) ownership C: Lori Bird 2014
The Net Metering debate Arguments on it and how to adress them 10 Subsidization Residential customers avoid paying transmission and distribution charges with retail rate credit (no demand charge); potential cost shift What is the appropriate rate for crediting solar generation? A variety of options exist for regulators to address distributed PV and may be used in combination Net metering (44 states in USA) Two-way rates e.g., value of solar Customer charges fixed charges, demand charges, minimum bill Time-based rates
Net-Metering - Preconditions 12 Feed-in of electricity must be allowed - Grid connection regulations are necessary Utilities are obliged to connect domestic RES systems to the grid The grid is used as buffer if production is higher than the demand at a specific time RES production is first used to cover the electricity need of the consumer (self consumption), excess power is fed to the grid, thus reducing the electricity bill of the consumer => no additional profit to make, once the electricity meter is balanced Option: Time-of-use - tariffs If time of use tariffs are paid net metering can be an attractive option, particularly in the case of PV which produces most power at peak times
Barriers / Enablers for Net-Metering 13 Barriers Regulatory barriers to self consumption Retail electricity prices should reflect actual electricity prices. Artificially low prices (e.g. Spain, Greece, France, Jordan, Argentina) prevents development of self-consumption or net-metering Exposure of self-consumed electricity to grid costs, adapt grid charges based on consumer profile/impact Back-up toll (e.g. Spain) is the example of a wrong measure Grid charge based on installed capacity, which do not reflect the consumer load profile Self consumption charges (Germany) Injection fees (France) Enablers Remuneration of grid operators (is needed but it should be socialised among consumers ) Smart meters, smart prosumer storage and Demand Side Management
Examples for Net Metering: USA www.dsireusa.org / March 2015 Note: Net Metering rules are being actively discussed in over a dozen state public service & utility commissions across the country. * WA: 100 OR: 25/2,000* CA: 1,000* AK: 25* MT: 50* NV: 1,000* UT: 25/2,000* AZ: 125% WY: 25* CO: 120%* NM: 80,000* HI: 100* State-developed mandatory rules for certain utilities ND: 100* NE: 25 OK: 100* MN: 40 IA: 500* WI: 20* KS: 15/100/150* MO: 100 AR: 25/300 No uniform or statewide mandatory rules, but some utilities allow net metering State policy applies to certain utility types only (e.g., investor-owned utilities) IL: 40* LA: 25/300 MI: 150* IN: 1,000* KY: 30* OH: no limit* GA: 10/100 VA: 20/1,000* NC: 1,000* FL: 2,000* U.S. Territories: American Samoa: 30 Guam: 25/100 Puerto Rico: 25/1,000/5,000 Virgin Islands: 20/100/500 ME: 660* SC: 20/1,000* 44 States + DC, AS, Guam, USVI, & PR have mandatory net metering rules State: kw limit residential/ kw limit nonresidential Note: Numbers indicate individual system capacity limit in kw. Percentages refer to customer demand. 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. DC VT: 20/250/2,200 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: 25/100/2,000* MD: 2,000 WV: 25/50/500/2,000 DC: 1,000/5,000/120%
Examples for Net-Metering: Europe 16
Examples for Net-Metering: India 17
What does Net-Metering look like in Argentina 18 The example of Salta