A review of net metering mechanism for electricity renewable energy sources

Abstract

In this work, an overview of the net metering mechanism for renewable energy sources for power generation (RES-E) systems is carried out. In particular, the net metering concept is examined with its benefits and misconceptions. Furthermore, a survey of the current operational net metering schemes in different countries in the world, such as, in Europe, USA, Canada, Thailand and Australia, is carried out. The survey indicated that there are different net metering mechanisms depending on the articularities of each country (or state in the case of USA). Especially, in Europe, only five countries are using net metering in a very simple form, such as, any amount of energy produced by the eligible RES-E technology is compensated from the energy consumed by the RES-E producer, which results to either a less overall electricity bill or to an exception in payment energy taxes. In the USA and the USA territories, any customer’s net excess generation is credited to the customer’s next electricity bill for a 12-month billing cycle at various rates or via a combination between rates. The actual type of net excess generation (NEG) credit is decided by a number of set criteria, such as the type of RES-E technology, the RES-E capacity limit, the type of customer and the type of utility. Regarding any excess credit at the end of the 12-month billing cycle, this is either granted to the utilities, or carries over indefinitely to the customer’s next electricity bill, or is reconciled annually at any rate, or provides an option to the customer to choose between the last two options.