Earlier this week, stakeholders in Massachusetts endorsed a compromise agreement to reform the state net-metering policy. Net-metering policies provide credits at full retail rate for excess generation provided to the grid. The agreement will remove a cap on the number of net-metered customers currently limiting the solar market in return for a minimum charge for all electric customers which will help utilities collect for fixed delivery costs.
Massachusetts offers a new model in the ongoing attempt to find a sustainable, win-win rate-making alternative to traditional net-metering policies. The use of an across-the-board minimum charge joins monthly net-metering fees (Arizona) and the value of solar tariff (Minnesota) as potential solutions to the problems with current ratemaking.
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