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| | <u>The basic elements of net metering are:</u> | | <u>The basic elements of net metering are:</u> |
| − | <div><span style="line-height: 19.200000762939453px;"></span> | + | <div><span style="line-height: 19.200000762939453px"></span> |
| | *'''Electricity generation''': electricity is usually generated by a small renewable energy system, permitting households or other small-scale investors to produce their own electricity.[[File:Illustration net metering.png|thumb|right|300px|Net Metering Illustration|alt=Illustration net metering.png]] | | *'''Electricity generation''': electricity is usually generated by a small renewable energy system, permitting households or other small-scale investors to produce their own electricity.[[File:Illustration net metering.png|thumb|right|300px|Net Metering Illustration|alt=Illustration net metering.png]] |
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| | *'''Grid connection:''' the net metering system is integrated with the grid. Surplus electricity produced is fed into the grid (e.g. during the day with solar PV), while any deficit in production is compensated by electricity taken from the grid (e.g. during the night with solar PV)<ref>The public utilities commission of Ohio.http://www.puco.ohio.gov/puco/index.cfm/consumer-information/consumer-topics/generating-your-own-electricity-net-metering/</ref>. | | *'''Grid connection:''' the net metering system is integrated with the grid. Surplus electricity produced is fed into the grid (e.g. during the day with solar PV), while any deficit in production is compensated by electricity taken from the grid (e.g. during the night with solar PV)<ref>The public utilities commission of Ohio.http://www.puco.ohio.gov/puco/index.cfm/consumer-information/consumer-topics/generating-your-own-electricity-net-metering/</ref>. |
| | *'''Metering: '''measuring the electricity produced and consumed can be done in two ways: | | *'''Metering: '''measuring the electricity produced and consumed can be done in two ways: |
| − | <blockquote>''Using '''one, reversible meter''' that measures both the electricity consumed and produced.''<br/></blockquote>''[[File:Net metering with 2 meters.png|thumb|right|300px|Net Metering with 2 Meters|alt=Net metering with 2 meters.png]]''<blockquote>''Using '''two meters''' - one measuring production, the other consumption. In many cases, this dual-metering system is preferred since it allows for production and consumption to take place in different areas, and for the application of different rates for production and consumption.<ref>Franz. M. 2012. "Net metering for small RE - the next big show in town? Background and evidence from Kenya and Ghana." Presented at the GIZ Fachverbund Energy Africa, Dakar, Senegal.</ref>''</blockquote><br/></div><div> | + | <blockquote>''Using '''one, reversible meter''' that measures both the electricity consumed and produced.''<br/></blockquote>''[[File:Net metering with 2 meters.png|thumb|right|300px|Net Metering with 2 Meters|alt=Net metering with 2 meters.png]]''<blockquote>''Using '''two meters''' - one measuring production, the other consumption. In many cases, this dual-metering system is preferred since it allows for production and consumption to take place in different areas, and for the application of different rates for production and consumption.<ref name="Franz. M. 2012. ">Franz. M. 2012. "Net metering for small RE - the next big show in town? Background and evidence from Kenya and Ghana." Presented at the GIZ Fachverbund Energy Africa, Dakar, Senegal.</ref>''</blockquote><br/></div><div> |
| | *'''Billing: '''billing is based on the net amount of electricity consumed per billing period - in other words, the difference between the amount of electricity consumed and the amount produced. If a household produces more electricity than it consumes, the surplus can usually be carried over (many times with a validity time limit attached), or be given to the utility without any compensation. | | *'''Billing: '''billing is based on the net amount of electricity consumed per billing period - in other words, the difference between the amount of electricity consumed and the amount produced. If a household produces more electricity than it consumes, the surplus can usually be carried over (many times with a validity time limit attached), or be given to the utility without any compensation. |
| | </div> | | </div> |
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| | <u>The following table provides an overview of countries where net metering policies are currently in use:</u><ref>REN21, 2012. "Renewables 2012 Global Status Report", REN21 Secretariat, Paris</ref> | | <u>The following table provides an overview of countries where net metering policies are currently in use:</u><ref>REN21, 2012. "Renewables 2012 Global Status Report", REN21 Secretariat, Paris</ref> |
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| − | | colspan="6" | <p style="text-align: center;">'''''HIGH INCOME COUNTRIES'''''</p> | + | | colspan="6" | <p style="text-align: center">'''''HIGH INCOME COUNTRIES'''''</p> |
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| − | | colspan="6" | <p style="text-align: center;">'''''UPPER-MIDDLE INCOME COUNTRIES'''''</p> | + | | colspan="6" | <p style="text-align: center">'''''UPPER-MIDDLE INCOME COUNTRIES'''''</p> |
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| − | | colspan="6" | <p style="text-align: center;">'''''LOWER-MIDDLE INCOME COUNTRIES'''''</p> | + | | colspan="6" | <p style="text-align: center">'''''LOWER-MIDDLE INCOME COUNTRIES'''''</p> |
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| | <u>Net metering is also being developed and piloted in the following low-income countries:</u> | | <u>Net metering is also being developed and piloted in the following low-income countries:</u> |
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| − | Net-metering is being piloted by private sector, although no specific regulation exists yet<ref>[5]</ref>. | + | Net-metering is being piloted by private sector, although no specific regulation exists yet<ref name="Franz. M. 2012. ">Franz. M. 2012. "Net metering for small RE - the next big show in town? Background and evidence from Kenya and Ghana." Presented at the GIZ Fachverbund Energy Africa, Dakar, Senegal.</ref>. |
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| − | Net-metering forms part of draft energy policy, and 2 pilot systems are feeding into the grid. Regulations are being developed<ref>[5]</ref> | + | Net-metering forms part of draft energy policy, and 2 pilot systems are feeding into the grid. Regulations are being developed<ref name="Franz. M. 2012. ">Franz. M. 2012. "Net metering for small RE - the next big show in town? Background and evidence from Kenya and Ghana." Presented at the GIZ Fachverbund Energy Africa, Dakar, Senegal.</ref> |
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| | == Pro's and Con's of Net Metering == | | == Pro's and Con's of Net Metering == |
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| − | There are two cases to be made for applying net-metering in developing countries: the economic case, and the regulatory/policy case<ref>[5]</ref>. | + | There are two cases to be made for applying net-metering in developing countries: the economic case, and the regulatory/policy case<ref name="Franz. M. 2012. ">Franz. M. 2012. "Net metering for small RE - the next big show in town? Background and evidence from Kenya and Ghana." Presented at the GIZ Fachverbund Energy Africa, Dakar, Senegal.</ref>. |
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| | The ''economic case'' is primarily built on the fact that certain renewable energy generation costs have reached, or will shortly reach, '''''grid parity''''' in many developing countries. | | The ''economic case'' is primarily built on the fact that certain renewable energy generation costs have reached, or will shortly reach, '''''grid parity''''' in many developing countries. |
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| | | '''''Grid parity''' can be defined in two ways<ref>Farrell, J. 2012. "Solar Grid Parity 101". http://www.ilsr.org/solar-grid-parity-101/</ref>:'' | | | '''''Grid parity''' can be defined in two ways<ref>Farrell, J. 2012. "Solar Grid Parity 101". http://www.ilsr.org/solar-grid-parity-101/</ref>:'' |
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| | *'''Brazil''': The GIZ Energy Programme, “Renewable Energy Sources and Energy Efficiency”, is running from 2009 to 2012<ref>GIZ, "Energy programme for Brazil" http://www.giz.de/themen/en/26759.htm</ref>. Among other activities, GIZ is assisting the Brazilian Energy Regulatory Authority (ANEEL), local governmental institutions and other stakeholders to develop and implement net-metering policy<ref>[3]</ref>. Net metering legislation was enacted in April 2012, covering all renewable energy systems up to 1 MW<ref>Figueiredo, R. 2012. "Brazil's attempt at distributed generation: will net metering work?" Renewable Energy World. http://www.renewableenergyworld.com/rea/news/article/2012/07/brazils-attempt-at-distributed-generation-will-net-metering-work</ref>. | | *'''Brazil''': The GIZ Energy Programme, “Renewable Energy Sources and Energy Efficiency”, is running from 2009 to 2012<ref>GIZ, "Energy programme for Brazil" http://www.giz.de/themen/en/26759.htm</ref>. Among other activities, GIZ is assisting the Brazilian Energy Regulatory Authority (ANEEL), local governmental institutions and other stakeholders to develop and implement net-metering policy<ref>[3]</ref>. Net metering legislation was enacted in April 2012, covering all renewable energy systems up to 1 MW<ref>Figueiredo, R. 2012. "Brazil's attempt at distributed generation: will net metering work?" Renewable Energy World. http://www.renewableenergyworld.com/rea/news/article/2012/07/brazils-attempt-at-distributed-generation-will-net-metering-work</ref>. |
| − | *'''Kenya''': Through the Project Development Programme (PDP) and a development partnership (develoPPP), GIZ has been supporting the Kenyan authorities in developing net metering legislation and policy. Net metering has now been included in draft energy policy, forming part of wider energy sector reforms taking place. Two pilot projects feeding solar PV into the national grid have been launched: a 60 kW installation at the SOS Children’s Village in Mombasa; and a 515 kW system on the roof of the UNEP offices<ref>[5]</ref>. The EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) is also providing further support to formulate net-metering regulation in the country through a project under the Renewable Energy Cooperation Programme (RECP). | + | *'''Kenya''': Through the Project Development Programme (PDP) and a development partnership (develoPPP), GIZ has been supporting the Kenyan authorities in developing net metering legislation and policy. Net metering has now been included in draft energy policy, forming part of wider energy sector reforms taking place. Two pilot projects feeding solar PV into the national grid have been launched: a 60 kW installation at the SOS Children’s Village in Mombasa; and a 515 kW system on the roof of the UNEP offices<ref name="Franz. M. 2012. ">Franz. M. 2012. "Net metering for small RE - the next big show in town? Background and evidence from Kenya and Ghana." Presented at the GIZ Fachverbund Energy Africa, Dakar, Senegal.</ref>. The EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) is also providing further support to formulate net-metering regulation in the country through a project under the Renewable Energy Cooperation Programme (RECP). |
| | *'''Mexico''': GIZ is providing energy sector technical assistance to Mexico as part of the “Sustainable Energy Mexico” program<ref>GIZ. "Sustainable Energy in Mexico". http://www.giz.de/themen/en/27816.htm</ref>. Net metering has been possible in the country since 2007, with capacity limits set at 30kW and 500kW respectively, depending on whether a net-metered system is classified as small- or medium-scale<ref>[3]</ref>. | | *'''Mexico''': GIZ is providing energy sector technical assistance to Mexico as part of the “Sustainable Energy Mexico” program<ref>GIZ. "Sustainable Energy in Mexico". http://www.giz.de/themen/en/27816.htm</ref>. Net metering has been possible in the country since 2007, with capacity limits set at 30kW and 500kW respectively, depending on whether a net-metered system is classified as small- or medium-scale<ref>[3]</ref>. |
| | *'''Morocco''': The “Promotion of Renewable Energy and Energy Efficiency” project, implemented by GIZ, has as one of its components the assessment of the potential for grid-connected solar PV in Morocco<ref>GIZ. 2012. "The promotion of renewable energy and energy efficiency - the 'PEREN' project". http://www.giz.de/Themen/de/dokumente/giz2012-renewable-energy-peren-en.pdf</ref>. The assessment has shown that Morocco will achieve grid-parity for all customer categories by 2013. GIZ is also developing a “million roofs program” proposal, which is dependent on net metering. While there are currently no specific net metering regulations in place, a law published in 2010 makes it possible to connect medium- and high-voltage renewable energy based systems to the grid<ref>[3]</ref>. | | *'''Morocco''': The “Promotion of Renewable Energy and Energy Efficiency” project, implemented by GIZ, has as one of its components the assessment of the potential for grid-connected solar PV in Morocco<ref>GIZ. 2012. "The promotion of renewable energy and energy efficiency - the 'PEREN' project". http://www.giz.de/Themen/de/dokumente/giz2012-renewable-energy-peren-en.pdf</ref>. The assessment has shown that Morocco will achieve grid-parity for all customer categories by 2013. GIZ is also developing a “million roofs program” proposal, which is dependent on net metering. While there are currently no specific net metering regulations in place, a law published in 2010 makes it possible to connect medium- and high-voltage renewable energy based systems to the grid<ref>[3]</ref>. |
Net metering means that both the electricity produced and consumed by a household or investor is measured. The prerequisite for net metering is economic viability of the net-metered electricity source compared to the grid price. This is also referred to as grid parity, a situation where it is cheaper to produce one's own electricity than to buy it from the national utility.
Net metering has been successfully implemented in both developed and developing countries. While the ways in which these countries have gone about impelenting the regulation differs according to the context, several elements are recurring:
There are two cases to be made for applying net-metering in developing countries: the economic case, and the regulatory/policy case[5].
