A guide to residential energy storage and rooftop solar: State net metering policies and utility rate tariff structures

Abstract

Federal and state decarbonization goals have led to numerous financial incentives and policies designed to increase access and adoption of renewable energy systems. In combination with the declining cost of both solar photovoltaic and battery energy storage systems and rising electric utility rates, residential renewable adoption has become more favorable than ever. However, not all states provide the same opportunity for cost recovery, and the complicated and changing policy and utility landscape can make it difficult for households to make an informed decision on whether to install a renewable system. This paper is intended to provide a guide to households considering renewable adoption by discussing relevant factors that influence renewable system performance and payback, summarized in a state lookup table for quick reference. Five states are chosen as case studies to perform economic optimizations based on net metering policy, utility rate structure, and average electric utility price; these states are selected to be representative of the possible combinations of factors to aid in the decision-making process for customers in all states. The results of this analysis highlight the dual importance of both state support for renewables and price signals, as the benefits of residential renewable systems are best realized in states with net metering policies and above-average electric utility rates.