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Growth of net metering in the United States. Net metering is a policy by many states in the United States designed to help the adoption of renewable energy.Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed, beginning with utilities in Idaho in 1980, and in Arizona ...
Massachusetts adopted net metering in 1982. By 1998, 22 states or utilities therein had adopted net metering. Two California utilities initially adopted a monthly "net metering" charge, which included a "standby charge", until the Public Utilities Commission (PUC) banned such charges. [5]
As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities. [122] However, although the states' rules are clear, few utilities actually compensate at full retail rates. [123] Net metering policies are determined by states, which have set policies varying on a number of key dimensions.
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While most U.S. net-metering programs offer reduced credits, excess energy in Puerto Rico is credited one-to-one. The lawsuit noted that the net metering terms would affect demand for the power company’s service, “as higher net metering rates will likely incentivize more customers to switch to distributed generation.”
The most common actions that states took were "advanced metering infrastructure deployment" (19 states did this), smart grid deployment and "time-varying rates for residential customers". [13] Legislatively, in the first quarter of the year 82 relevant bills were introduced in different parts of the United States.
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The value of solar electricity is less than the retail rate, so net metering customers are actually subsidized by all other customers of the electric utility. [13] United States: the Federal Energy Regulatory Commission (FERC) oversees the wholesale electricity market along with the interstate transmission of electricity.