REUTERS/Denis Balibouse - The sun sets over electrical power lines in Romanel near Lausanne in southern Switzerland September 23, 2008.
Report
Value of the Grid to DG Customers
October 1, 2013, Lisa V. Wood and Robert Borlick
State policies have encouraged distributed generation (DG) and, in particular, rooftop solar by compensating customers through net metering. Lisa Wood and Robert Borlick calculate that current net metering approaches unfairly shift the cost of grid services that DG customers utilize most or all of the time (such as transmission, distribution, and balancing services) onto onto non DG customers and that these costs are substantial. They recommend modifying the current net metering cost shifting using alternative approaches where DG customers pay their fair share of the cost of grid services.