Kroll claims changes to net metering rules may damage residential solar value propositions

Written By: Stratton Report
June 28, 2016

Kroll Main

On June 28, Kroll Bond Rating Agency announced that recent changes in net metering policies across the United States will likely erode the savings solar customers accrue from installing solar PV systems, and in some cases, render a solar customer’s utility bill more expensive than that of a non-solar customer.

The rating agency notes that installed capacity of solar PV systems has increased over 136% in the last two years alone, having risen to 4,931 MW in March 2016 according to the latest statistics from the U.S. Energy Information Administration. In most markets, utilities purchase the excess electricity at retail rates, but there has been some discussion that this approach should change as non-solar customers are subsidizing the infrastructure supporting the electrical system.

Kroll’s analysis reviews the potential impact proposed regulations may have in hypothetical case studies for northern Nevada and southern California, where some of these proposed changes have been approved.