US state-level solar policy moving away from traditional net metering
From pv magazine USA
The NCCETC has released its 2024 annual review and fourth-quarter edition of “The 50 States of Solar.” The quarterly series tracks US state regulatory and legislative discussions and actions on distributed solar policy.
The fourth-quarter report finds that 47 states, plus the District of Columbia and Puerto Rico, took some type of distributed solar policy action during 2024. The greatest number of actions were related to net metering policies, residential fixed charge increases and community solar. From these policy actions, the authors noted the top 10 most active states along with trends in policy making.
“Following a period of relatively little activity, 2024 saw the reemergence of requests for large fixed charge increases,” noted Brian Lips, senior project manager at NCCETC. “Starting with California, where the Commission approved income-graduated fixed charges, multiple utilities requested increases of 100% or more.”
Top solar policy trends 2024
New states continue to move beyond traditional net metering
Distributed solar programs integrate provisions for multifamily buildings
Utilities request approval for large fixed charge increases
Formal studies inform net metering successor tariff design
Community solar program updates dedicated to low-income participation
States and utilities reach net metering successor triggers
Stakeholders oppose previously approved distributed generation charges
States consider federal funding in distributed solar program design
Energy storage incorporated into distributed solar (Re)designs
Utilities differentiate residential rates based on customer type
Most active states in 2024
The report notes that nearly every state in the country took some type of action on distributed solar policy or rate design during 2024, some states were more active and took what could be impactful policy steps. That states that took no action are shown in the map below.
Virginia
Appalachian Power filed a net metering successor program that uses hourly netting and crediting exports at the avoided cost, while Virginia lawmakers expanded solar leasing to allow third parties to own, maintain and operate net metered solar installations. Lawmakers also expanded Dominion Energy’s shared solar program, increasing the program cap by 50 MW and adding an additional 150 MW under a potential second phase. Lawmakers also directed Appalachian Power to create a similar 50 MW program.
West Virginia
The Public Service Commission (PSC) approved Monongahela Power and Potomac Edison’s net metering successor tariffs, which shift to instantaneous netting and set the compensation for excess generation at the wholesale power cost. Existing customers would be grandfathered into the original program. Appalachian Power and Wheeling Power filed a similar successor tariff later in the year, with exports credited at the avoided cost, based on customer voltage.
Washington
Washington lawmakers ordered the Department of Commerce and the State Academy of Sciences to investigate the value of distributed solar and recommend options for for when the net metering threshold is met. The Utilities and Transportation Commission approved various revisions to net metering tariffs, including extending Puget Sound Energy’s net metering tariff to new customers through the end of 2025, even if the program cap is reached.
California
The Governor of California vetoed a bill that would have replaced the buy-all/sell-all mechanism for multi-tenant buildings and public schools with 15-minute interval net billing. The Public Utilities Commission (PUC) approved an income-based graduated fixed charge framework for residential customers. The Commission also adopted a new Community Renewable Energy Program and expanded the existing Disadvantaged Community Green Tariff Program by 84 MW.
Connecticut
Regulators in Connecticut made changes to the state’s net metering and community solar programs, including integrating multifamily buildings into the Residential Renewable Energy Solutions Program and public schools into the Non-Residential Program. Lawmakers enacted legislation extending the Shared Clean Energy Facilities (SCEF) Program an additional two years and requiring a study on successors to the Renewable Energy Solutions and SCEF programs.
New Jersey
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