Net metering in British Columbia

Their utilities will install a new digital electrical meter for homes with renewable power that tracks power used by the home separately from power generated into the grid. This is called “net billing” and allows the homeowner to be reimbursed for the power they create.

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Net metering and feed-in tariffs

Germany has the world’s largest photovoltaic market. They did this with an innovative program that encourages homeowners to install solar. Rather than take the net metering approach (common in the US) in which excess energy is sent into the grid with the homeowner generally getting paid for it,they instead install the solar outside the meter and send all the energy into the grid. The homeowner pays the regular bill BUT is compensated at three times the going rate for energy generated. While a rate like that would probably have to be subsidized here in the US (and lots of energy already is subsidized), the program has had spectacular results.

The tariffs have been around since 2000 in Germany and, in that time, the proportion of energy derived from renewable sources has doubled. Germany actually reached their goal of 12.5% green energy three years early and increased its target to 27% green energy production by 2020.

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Virtual Net Metering

With Virtual Met Metering a municipality buys or leases land not necessarily in their area and installs renewable energy on it. All energy goes directly into the grid. They then receive a credit on their electrical bill for the energy generated, offsetting their own usage.

The Rhode Island legislature recently approved a municipal net metering bill. May other states follow.

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Net metering

Net metering is a policy, usually set by the state and implemented by the electrical utility, that allows customers who generate renewable energy to get paid for it when it goes back into the grid.

Seems a simple enough idea, doesn’t it? Yet in practice the rules can be extremely convoluted, vary widely, and may or may not reimburse the homeowner.

New Jersey and Colorado have the most progressive net metering laws in the nation while New York and California are quite regressive.

Net metering regulations need to favor and encourage, not discourage, homeowners to install renewable power.

Renewable energy World has a useful explanation of the issues involved.

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