FERC Net Metering Decisions Keep States in the Dark

As the effects of climate change increasingly become a reality, policymakers have recognized the need for more renewable energy, such as wind and solar power, and the benefits of distributed generation. One important way that both renewable energy and distributed generation are being addressed is through the use of electrical net metering policies. Net metering allows property owners to generate their own electricity and to receive credit from their utility company for any excess. State net metering policies are pervasive—forty-three states and the District of Columbia have adopted some form of net metering—and yet uncertainty remains about their jurisdictional limits. Further, FERC’s guidelines on net metering are unclear and are preventing state policies from reaching their full potential. This Note reviews the net metering rules of three different states and analyzes the useful aspects of each. It then argues that FERC should provide clearer guidelines that allow states to expand their net metering policies and more effectively foster distributed renewable energy generation.