Net Metering: New Opportunities For Home Power
Thomas J. Starrs
Growing numbers of Americans seek to lower their monthly electricity bills and soften the environmental impact of their energy use by
installing photovoltaic panels, solar water heaters, and small wind and water turbines. Net metering, a technique for calculating the
household's resulting electric bill, can boost the financial appeal of renewable energy technologies. Although net metering may
slightly reduce utility revenues, utilities and policymakers can cap the amount of net metering that utilities allow. A well-chosen cap
will minimize the financial loss to the utility while stimulating substantial growth in renewable energy use. Net metering also can
produce appreciable non-revenue advantages for utilities while protecting the environment and benefiting consumers.