Attorney Brian Nese was quoted in Microgrid Knowledge in an article titled “Net Metering and Microgrids: Do Your Homework.” The article discusses the benefits of the interconnection of net metering and microgrids and the regulatory and other considerations a microgrid owner must look at before adding net metering to his system.
Under net metering, excess energy is fed to the grid by an operator, causing his meter to run backward and saving him money. Net metering can be used within a microgrid, a discrete system of energy sources—such as demand management, storage and generation—and loads, which is capable of operating independently from or in parallel with the main power grid.
But microgrid owners need to find out if their utility supports net metering, make sure they understand all of the costs involved in implementing it, and be aware of the regulations governing the practice in their state, including if there are any extra charges that may be added or changes in rate classification made that lessen the cost effectiveness of net metering.
For example, a successful utility challenge left net metering subject to high rates in Nevada, making the practice less economic for the producer, while California recently tweaked its net metering regulations in response to utility requests but mostly left the practice as it was. “The California Public Utilities Commission’s decision in keeping net metering with minor modifications and rejecting the proposal from utilities to impose fixed charges, will be watched closely by other states,” said Nese.
Read “Net Metering and Microgrids: Do Your Homework,” published February 29, 2016.