December 4, 2010

The Intersection of Net Metering and Retail Choice: An overview of policy, practice and issues

In regulated states, net metering is a fairly straightforward process, involving a transaction between a utility and customer.

In complex competitive markets, however, retail choice providers and distribution utilities must communicate in order to provide net metering for their customers. Furthermore, every state has a different set of laws and regulations that make it difficult for retail choice companies working in multiple states at once. As a result, restructured states have yet to see a significant number of retail choice customers with net metered systems, despite the fact that several of these states have some of the best net metering policies in the country. This report clarifies how net metering works in these complex environments.