Net Metering: Do Non-Solar Homeowners and Utility Companies Have a Legitimate Gripe?

Abstract

Solar electricity is booming. Every 4 minutes a solar electric system is installed on the rooftop of a U.S. home. It is predicted that 2013 will be the first year annual U.S. solar installations will surpass 100,000 systems. This surge has resulted in the U.S. increasing its share of global solar installations from 5 percent in 2008 to 13 percent in 2013. In fact, U.S. solar installations may reach a staggering 3,300 megawatts in 2013, establishing the U.S. as the 4th largest solar market in the world. Solar advocates believe these impressive numbers demonstrate a shift to solar power that will result in undeniable environmental benefits and help break U.S. dependence on fossil fuels. However, a growing number of critics contend that solar is being “propped up” by unsustainable policies and incentives that shift the costs of solar to others. Non-solar consumers and utilities have a legitimate gripe. Lawmakers in several leading solar states have recognized these claims and are taking corrective action.