Rooftop Solar Deployment, Potential Electricity Rate Impacts, and the Timing of Revisions to State Net Metering Policy
Most U.S. states require utilities to credit residential solar photovoltaic (PV) output at the retail electricity rate, a structure known as net metering. However, 12 states have replaced net metering with alternative rate structures that reduce PV adopter bill savings. The share of households living in states that require net metering fell from around 84% in 2014 to around 57% by the end of 2023. Proponents of net metering revisions have argued that net metering can affect the electricity rates of customers without PV. This report analyzes the relationships between state PV deployment levels, potential electricity rate impacts on PV nonadopters, and the timing of revisions to net metering policy.