Battles over net energy metering (NEM) policy are currently
raging nationwide, and are only expected to intensify in the face
of the recent investment tax credit (ITC) extension. NEM, a state
statute-based policy incentive that allows small generators of
electricity to sell their excess generation into the grid typically
subject to an overall cap, has been a great contributor to the
proliferation of residential rooftop solar. It has also stimulated
commercial and industrial-sized facilities in some locations,
particularly those jurisdictions that allow for the slightly more
complicated 'virtual' net metering approach.
However, as solar has gained greater market penetration,
utilities have increasingly pushed back against NEM. As with many
issues, the arguments on both sides of the NEM debate are
complicated. Opponents, typically utilities, claim that NEM
policies shifts pro rata grid costs from solar customers onto the
rest of their rate-paying base. They also argue
