Customer bill impacts of energy efficiency and net-metered photovoltaic system investments

Utility regulators and policymakers are concerned about potential increases in retail rates driven by energy efficiency (EE) programs and distributed solar photovoltaic (PV) systems, which may adversely affect utility customers that do not invest in these technologies (i.e., non-participants) and more so than those that do (i.e., participants). We assess customer bill impacts of illustrative EE programs and net-metered PV systems for a prototypical northeast utility. We find that the timing of customer EE or PV investments matters and that modest energy savings may fail to yield financial benefits sufficient to offset concomitant increases in retail rates.