The Value of Solar Tariff: Net Metering 2.0

Abstract

Increasing numbers of customers are installing solar photovoltaic systems on their homes and businesses. As module and system costs decline, customer demand grows, and more businesses organize around the solar opportunity, it is time to revisit the tariff structure under which these systems integrate with and operate on the electric grid. This article details a novel approach to a distributed solar tariff, called the “Value of Solar” tariff (“VOST”), that addresses important utility and customer issues, and offers some significant improvements over traditional net metering approaches.

Keywords: value of solar, net metering, energy law, environmental law, renewable energy

JEL Classification: K32, Q20, Q40