Beyond net metering: A model for pricing services provided by and to distributed generation owners

Abstract

With the status quo unsustainable in the face of the widespread adoption of distributed generation, the authors propose a new method of metering, compensating and charging customers who own DG resources. The authors encourage separate and granular gross DG output measurement and compensation (plus potentially charges), whether DG is exported to the grid or consumed locally, preferably reflecting locational and temporal value. They analyze the costs and benefits of net metering and their proposed alternative.