OntheWilderSide

Advocates Release Third Annual Report Card to States on Net Metering, Interconnection

Renewable energy advocates today released the 2009 Edition of Freeing the Grid, a policy guide that grades states on their current net metering and interconnection practices. Together these two policies empower energy customers to use solar and other renewables to meet their own electricity needs. This third edition of the report finds that, although net metering and interconnection policies still vary widely, states have made significant strides in adopting the best practices that drive renewable energy market growth and job creation.

“Understanding these policies is critical because each provision in a state’s rules for net metering and interconnection has the potential to be a powerful incentive or a poison pill for the growth of renewables in that state. Freeing the Grid offers a clear, reliable roadmap to maximizing the former and avoiding the latter. Our hope is that it will continue to lay the groundwork for robust markets in solar and other distributed renewable energy sources,” said Kyle Rabin, NNEC’s Executive Director.

Freeing the Grid is produced annually by the Network for New Energy Choices (NNEC). This year’s edition features collaboration from Vote Solar, the Interstate Renewable Energy Council (IREC), the Solar Alliance and the North Carolina Solar Center. Download the full text of the 2009 report at: www.freeingthegrid.org

• Interconnection Standards are the technical requirements and legal procedures that allow a customer-sited generator to “plug-into” the electricity grid. To ensure best practices and eliminate the potential for utility interference, this interconnection process should be governed by a transparent, non-arbitrary set of provisions that facilitate rather than hinder connection to the grid. The new edition of Freeing the Grid reports 15 states with A or B grades in interconnection standards, a significant improvement from only one state in 2007. Virginia is the first and only state to receive an A for excellent interconnection rules. [NY got a B]
• Net Metering is a simple billing arrangement that allows solar customers to get fair retail credit for the excess electricity their systems generate during daytime hours. Under best practices, 1 kWh generated by the customer has the exact same value as 1 kWh consumed by the customer. There should not be arbitrary limits on the size of the systems nor the total number of systems allowed to participate. The new edition of Freeing the Grid reports 27 states with A or B grades in net metering standards, up from 13 in 2007. Eight states (Alabama, Alaska, Idaho, Mississippi, South Carolina, South Dakota, Tennessee and Texas) still do not have statewide net metering programs. [NY got a D]
• Best Practices Case Study: Oregon. Using best practices proven in other states as a starting point, Oregon has implemented net metering and interconnection standards that put the state at the head of the class. Oregon’s inclusive net metering program goes beyond standard practices with its aggregation rule that allows customers, such as farmers, who may have more than one electric meter on their property, to use net metering credits at multiple sites, allowing more cost effective use of renewable energy. State regulators have set up simplified interconnection procedures and reduced unnecessary safety requirements for smaller systems. By combining strong net metering and interconnection procedures with an over-all comprehensive renewable energy strategy — which includes generous rebates and a strong RPS with a 20-MW solar carve-out — Oregon is set to expand renewable energy statewide. Read more »

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