Net Metering - Comparison

Comparison

There is considerable confusion between the terms "net metering" and "feed-in tariff". In general there are three types of compensation for local, distributed generation:

  • Feed-in Tariff (FIT) which is generally above retail, and reduces to retail as the percentage of adopters increases.
  • Net metering - which is always at retail, and which is not technically compensation, although it becomes compensation if there is excess generation.
  • Power purchase agreement - compensation which is generally below retail, also known as a "Standard Offer Program", and can be above retail, particularly in the case of solar, which tends to be generated close to peak demand.

Net metering only requires one meter. A feed-in tariff requires two.

Read more about this topic:  Net Metering

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