22 May '12, 3pm

Doing the Math: Is Net Metering a Cost to Utilities, or a Benefit?

Utilities often claim that allowing customers to run their meter backward (by generating electricity on-site, e.g. from rooftop solar) can affect their bottom line because these customers don’t pay enough to cover the cost of maintaining the grid. In at least one case, however, a utility’s cost-benefit analysis of net metering was turned on its head in an independent review. Presenting as part of Vote Solar’s Data Not Drama webinar on net metering last month, Interstate Renewable Energy Council’s (IREC) Joe Wiedman showed the Public Service Company of New Mexico (PNM) erred in proposed standby charge of 5.3 cents per kWh for net metering customers. The utility asserted that this charge – ostensibly to backup these on-site generators – would allow the utility to recover its costs from these customers busily spinning back their meters. IREC’s review of their analysis, howeve...

Full article: http://www.renewableenergyworld.com/rea/blog/post/2012/05...

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Doing the Math: Is Net Metering a Cost to Utili...

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