FERC Ruling Keeping Net Metering Oversight with the States a Win for Consumers

In June, we wrote a blog post about a potential ruling by the Federal Energy Regulatory Commission (FERC) that would have effectively ended net-metering, a practice that encourages rooftop solar installation.  

The threat was due to an April petition filed by a grasstops organization called the New England Ratepayers Association (NERA), which asked the commission to take net-metering out of the hands of the individual states and place it under federal oversight. FERC received tens of thousands of letters from consumers strongly opposed to the change – including many from our own advocates—and that effort has now paid off.

The Energy Choice Coalition (ECC) is pleased to report that FERC voted unanimously against the request from NERA, which is a big “win” for consumer choice. 

Under FERC’s previous ruling, states can set their own guidelines for net-metering programs within their jurisdictions. Net-metering allows people with rooftop solar to sell excess energy generation back to their utilities at a fair, retail rate. The popular program has driven the proliferation of solar generation thanks to state regulators carefully managing these programs to encourage installation.

Reversing that decision and putting the federal government in charge would have had profound consequences for the renewable energy industry and consumers. Disrupting the sale and installation of new rooftop solar could have led to massive job losses in the industry during a time when it has already had issues thanks to the economic downturn and social distancing measures.

Solar energy has contributed more than $100 billion to the U.S. economy and helped to create hundreds of thousands of jobs nationwide. Millions of consumers have already invested their own money in rooftop solar thanks in part to the promise of returns from net metering. FERC’s decision unequivocally protects these solar owners.

FERC’s decision is being widely applauded by consumer groups, energy experts, environmental advocates, and state officials, among others. Ahead of the ruling, FERC received just 22 public comments in support of the NERA petition, while 57,000 comments were submitted in opposition. The ECC commends FERC for making the right decision in this case and supporting consumers.