Annual Net Metering

The Alaska Legislature is considering an annual net metering bill (HB 164 and SB 150) which would allow Alaskans on the railbelt who install solar (or other renewable energy on their properties) to recoup their upfront costs more quickly by crediting them more for the energy they send back into the grid. The bill was introduced at the request of Governor Dunleavy, and should garner broad bipartisan support. 

Solar panels are one of the cleanest and most efficient ways for us to generate electricity. Favorable net-metering policies are one of the best ways to inspire more individuals and businesses to invest private dollars into the infrastructure needed to power our lives.  

Current Net Metering Policy

Right now, Alaskans with rooftop solar get to use the energy they produce when they are using energy, and then the excess is sent back to the grid. They are compensated for that energy at the wholesale rate, which is less than the retail rate everyone pays for their electricity. Those credits are good until the end of the month, but unused credits won’t roll over into winter months. 

Potential New Net Metering Policy

This bill would change the compensation for energy sent into the grid to match the retail rate of electricity, and the credits would rollover all the way to March 31st of each year. That means that if someone has enough panels to produce more than what they use in the summer, they can then use those credits to cover their electricity bill during the darker winter months.

This will allow folks to cover their upfront installation costs much more quickly, and then save more money on their electrical bill. This should inspire more Alaskans to invest in rooftop solar and invest in large enough arrays to cover their needs over the course of the year. That’s good for them, good for the grid given the natural gas situation, and most importantly, it’s good for our air and water. 

Curious about some of the wonkier components of the bill? Erin McKittrick has a great blog on the subject.