Abstract
To stimulate grid-connected solar PV systems on private dwellings, the Netherlands currently have a net metering policy, but questions have been raised on its continuation. In this study, several alternative policy options were assessed on the financial case for private homeowners investing in a PV system (simple payback time), on purchasing behaviour (using a technology adoption model), and on governmental costs. While continuation of net metering policy leads to ongoing improvement of the financial case up to levels that could be considered overstimulation, three policy alternatives can be set up so that they stabilise simple payback times of recent and future generations of PV systems. Under these alternative instruments, deployment of PV systems in this market segment is indicatively estimated to be 15–20% lower by the year 2030 than with continuation of net metering policy, while corresponding governmental cost reduction indications would be more than 50%. We conclude that from a cost effectiveness point of view there is reason to change to an alternative instrument. We did not find any decisive arguments pro or con either of the three alternative instruments, neither on the basis of the three main impacts analysed nor from other aspects reviewed more qualitatively.
Highlights
For the deployment of decentral grid-connected solar photovoltaic (PV) systems in conventional electricity grids, an effective and stable policy environment is pivotal [1,2]
To feed-in tariffs, net metering policy is generally considered a relevant instrument to improve the financial case for households investing in a PV system, thereby providing a strong incentive for the deployment of solar PV in this market segment [3,4]
The Figure shows that simple payback times will gradually decrease to around 3 years for this reference system if net metering policy is maintained
Summary
For the deployment of decentral grid-connected solar photovoltaic (PV) systems in conventional electricity grids, an effective and stable policy environment is pivotal [1,2]. Net metering policy does not provide any incentive for PV system owners to increase their level of self-consumption (electricity produced and consumed behind the meter) and thereby reducing their use of power grid capacity Such incentives will become increasingly important with the further roll-out of decentral PV systems as wide-spread feed-in of PV electricity can affect local power quality and increased grid capacity use [7,8]. These arguments can be found in other studies on the pros and cons of net metering policy vis-a-vis other incentives, such as feed-in tariffs [9e11]
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