Net Metering Might Get A Face Lift

Net metering might get overhauled to a point where it will most definitely be more valuable to include battery storage or utilize load shaping technologies to get the best value from your solar system.

Currently in many states utilities will pay retail rates or provide a credit for the amount of electricity you push back into the grid from solar. However, what is happening is that it is putting additional burden on the utility – in some cases paying more than what value they are being delivered.

This means each kWh you push back into the grid will only provide a fraction usually as low as 50% of the true cost you would have paid to receive that power. Naturally, this is the utility looking at self-preservation and onlookers looking at it as a reason that solar installs and sales will tank and prices will begin to rise again. Especially with the decline in Federal ITCs occurring.

However, we look at it as a positive. It allows for new solutions and more grid modernization efforts to push forward. Timing this with the wind down in ITCs we will likely see more value for solar + storage systems than we will for solar systems alone. Buying it mostly for the premium service of renewable and resilient power.

While the economics might not be perfect – the change and nationalizing the standard could certainly hurt people with existing solar systems waiting to pay off their investment, but can help the overall market as a whole in the coming years.

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