Can Net Metering Policies Change After Installation?

Understanding Net Metering Policies

Net metering policies vary by state and even by utility company. These policies determine the compensation rate for excess energy generated by a solar grid tie system and fed back into the grid. For example, in California, the net metering policy is enforced by the Public Utilities Commission, which allows homeowners to sell excess energy back to the grid at a rate of 3.5 cents per kilowatt-hour. However, this rate has been adjusted in the past and may be adjusted in the future.

Changes to Net Metering Policies

Utility companies and regulatory bodies may modify net metering policies due to changes in energy demand, supply, or cost. For instance, in 2019, Arizona’s largest utility company, Salt River Project, proposed a new net metering policy that would reduce the compensation rate for excess energy from 12.5 cents to 7.5 cents per kilowatt-hour. While this change may not affect existing installations, it would impact new installations and those looking to upgrade their systems.

Impact on Solar Grid Tie Systems

Homeowners and businesses with existing solar grid tie systems may be exempt from changes to net metering policies, but this depends on the specific policy and jurisdiction. For example, some states have grandfathered existing installations under the old net metering policy, while others may allow existing installations to continue operating under the previous compensation rate. It’s essential for solar grid tie system owners to review their local net metering policies and contract terms to understand their specific situation and any potential changes that may affect their system’s value and operation.