A Report On Net Metering

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Net Metering Any power produced by on-site generators can be used by the customer or cogeneration facility. If there is more electricity generated than is used on-site or in the home that power can travel back through the meter and onto the distribution grid, providing power in those moments for other local customers. Customers feeding electricity back to the grid can present unique challenges for grid operators trying to manage supply and demand efficiently. For example, in cases such as Hawaii’s, unwanted solar energy that utilities are forced to take may add too much energy to an already-taxed system, increasing the risk of voltage spikes. Aside from the challenges for grid operators in balancing the flow of electricity, utilities also…show more content…
Net Metering Policies Currently, 43 states and the District of Columbia have adopted formal net metering policies. While there is some variation, customers are generally reimbursed for the electricity they supply back to the grid at the full retail rate, when utilities could purchase power from local power plants at wholesale prices. But most customers do not supply power to the grid, and this cost shift from net metering customers to others (generally from solar users to non-solar users) has driven discussions on reforming net metering policies nationwide. Finding a fair way to address these issues going forward is essential for promoting long-term equity and reliability in the power grid. Demand-Side Management (DSM) Electricity may be the one industry in which suppliers actively encourage customers to use less of their product, and that is partly due to demand-side management (DSM) policies. DSM policies such as energy efficiency laws encourage or force utilities to sell less electricity, particularly during peak hours when electricity use and electricity prices are highest. Critics of DSM point out two fundamental problems: 1) DSM policies start with a false premise—they assume everyone uses too much electricity to begin with, which is impossible to know for each individual
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