The State of Net Metering In 2020 | How Net Metering Affects Your Solar Business

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March 5, 2020 | By RGR Marketing Blog

Where You Live Has Big Implications on Net Metering Potential

In 2019, there were several states that initiated changes in how solar customers could take advantage of net metering, and not all of them were positive developments. This has a lot of people wondering if there’s a war being waged against net metering by the coal and gas industries.

The truth is coal and gas lobbyists have proven to be successful in getting legislators in several states to pass net metering reforms that dramatically reduce the amount of money solar customers can get for their unused electricity. And, with the progress that was made against net metering tariffs last year, one can only imagine that utilities will get even more aggressive in 2020.

Here were some of the biggest changes to affect net metering in 2019 and what you can do to help offset concern and hesitation among prospects who were interested in solar for its net metering benefits.

Louisiana Eliminates Net Metering

As of January 1, 2020, Louisiana put an end to net metering in the state, replacing it with “compensation at avoided cost for all power exported to the grid on an instantaneous basis.” This is a major change of direction for a state that at one time had one of the best economies in the country for rooftop solar.

According to the new law, utility customers who install solar on or after January 1^st will be paid a 12-month calculation of wholesale rates for the power they generate and export to the grid on an instantaneous basis, while buying power from the utility at retail.

Connecticut Net Metering Gets a Brief Reprieve

In the fall of 2019, net metering in Connecticut was expected to end. But solar proponents were able to convince state lawmakers to push back the expiration date until after 2021. While the reprieve is brief, it is still considered a win for the solar industry in the state with the bill, HB 5001, being passed by a vote of 32 to 1.

In addition to the net metering extension, the bill also extends the commercial solar ZREC program into 2021. The ZREC program annually awards 15-year contracts to developers of commercial solar projects. It also added incentives to install an additional 50 MW of home solar to the Residential Solar Investment Program (RSIP) offered through the Connecticut Green Bank.

State regulators will now be required to study the value of distributed energy resources and take those findings into account when determining any potential future departures from net metering.

Utility Companies Around the Country Seek Net Metering Reductions

Net metering is a hot political topic, with Republicans and Democrats seemingly at polar opposites in their stances. In states where conservatives are the majority, utility companies are emboldened by their support and are aggressively attacking net metering tariffs.

For example, in Idaho, Idaho Power is trying to get state regulators to decrease net metering tariffs by 50 percent. The basis of their argument is their belief that net metering has “failed to properly recover the costs incurred to serve customers with on-site generation.”

Meanwhile, in Vermont, lawmakers are looking to restructure their state’s net metering laws because they believe the existing system rewards the wealthy while increasing the financial burden for traditional utility ratepayers. In 2011, Vermont’s net metering compensation was 19 to 20 cents per kWh, but in July 2019, the compensation dropped to around 14 cents to 18 cents, depending on the size of the system.

How to Overcome Prospect Concerns About Losing Net Metering

Utility companies and conservative lawmakers are gunning for net metering, and they’re unfortunately proving successful in many cases. For many solar prospects, the uncertainty of not knowing if they’ll be able to benefit from net metering may be enough of a deterrent to keep them from making their decision. Knowing to how to dissuade their concerns is key to converting the sale.

If you work in a state where net metering is under attack, then you will have to rely on other benefits to help elevate your prospect’s excitement level about solar. For instance, focus on how much money they can save on their energy bill. Educate them about the federal tax incentives, and how the amounts will be dropping over the next couple of years until the incentive is no longer available, and how getting solar now will get them their highest credit. Showcase the importance of being environmentally aware and the benefits that clean, renewable energy will have on their household, community and planet.

Plus, with legislation being a fluid thing depending on who is in office, there’s also the chance that net metering tariffs may be approved once again after an election.

Try Solar Leads From RGR Marketing and See the Difference Quality Makes

Despite the attack on net metering, most Americans understand the need for renewable energy. This means that people still want solar. At RGR Marketing, we can provide you with the solar leads your business needs to keep growing. Our leads that have been pre-verified for accuracy, so your sales team can get right to work.

With over 20 years of experience, we’re the experts when it comes to solar leads. Contact RGR Marketing today and find out for yourself how quality purchased leads can help you reach all your revenue goals.

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Where You Live Has Big Implications on Net Metering Potential

Louisiana Eliminates Net Metering

Connecticut Net Metering Gets a Brief Reprieve

Utility Companies Around the Country Seek Net Metering Reductions

How to Overcome Prospect Concerns About Losing Net Metering

Try Solar Leads From RGR Marketing and See the Difference Quality Makes

Start making more
money today!

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Where You Live Has Big Implications on Net Metering Potential

Louisiana Eliminates Net Metering

Connecticut Net Metering Gets a Brief Reprieve

Utility Companies Around the Country Seek Net Metering Reductions

How to Overcome Prospect Concerns About Losing Net Metering

Try Solar Leads From RGR Marketing and See the Difference Quality Makes

Start making more money today!

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