{"id":108511,"date":"2025-02-10T10:33:38","date_gmt":"2025-02-10T15:33:38","guid":{"rendered":"https:\/\/\/?p=108511"},"modified":"2025-02-10T13:48:39","modified_gmt":"2025-02-10T18:48:39","slug":"net-metering-changes-are-sweeping-the-country-heres-how-solar-companies-can-prepare","status":"publish","type":"post","link":"https:\/\/\/2025\/02\/net-metering-changes-are-sweeping-the-country-heres-how-solar-companies-can-prepare\/","title":{"rendered":"Net-metering changes are sweeping the country. Here\u2019s how solar companies can prepare"},"content":{"rendered":"<p>Net-metering policies are shifting across the country, and solar installation companies have a right to be concerned. California\u2019s NEM 3.0 slashed export compensation rates, Hawaii transitioned to a self-supply model and states like Arizona and West Virginia have significantly reduced net-metering rates. Now Virginia is in the crosshairs, with Appalachian Power Company (APCo) <a href=\"https:\/\/www.virtuesolar.com\/2024\/05\/14\/virginia-net-metering-changes\/\">proposing<\/a> to cut net-metering compensation by more than 70%. When enacted, these attacks on net metering can have big effects on the solar industry.<\/p>\n<p>For small solar installation businesses, this is a real threat \u2014 but there\u2019s hope. By looking at how markets like California and Hawaii navigated similar shifts, we can take proactive steps to protect our businesses and keep solar viable.<\/p>\n<h3><strong>Advocacy and coalition building: Fighting for fair policy<\/strong><\/h3>\n<div id=\"attachment_108512\" style=\"width: 510px\" class=\"wp-caption alignright\"><a href=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Residential-solar-and-storage-project-by-virtue-solar-stock.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-108512\" class=\"wp-image-108512 size-medium\" src=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Residential-solar-and-storage-project-by-virtue-solar-stock-500x325.jpg\" alt=\"\" width=\"500\" height=\"325\" srcset=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Residential-solar-and-storage-project-by-virtue-solar-stock-500x325.jpg 500w, https:\/\/\/wp-content\/uploads\/2025\/02\/Residential-solar-and-storage-project-by-virtue-solar-stock-368x238.jpg 368w, https:\/\/\/wp-content\/uploads\/2025\/02\/Residential-solar-and-storage-project-by-virtue-solar-stock.jpg 770w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><p id=\"caption-attachment-108512\" class=\"wp-caption-text\">A residential solar + storage project completed by Virtue Solar in Virginia.<\/p><\/div>\n<p>If your state is facing a net-metering overhaul, it\u2019s not over yet. Utilities often try to push these policies through quietly, but public pressure can shift the conversation. Here\u2019s how you can fight back:<\/p>\n<ul>\n<li><strong>Partner with nonprofits and industry groups<\/strong>\u00a0\u2013 Organizations like SEIA, Sierra Club, Solar United Neighbors and local environmental groups have experience in policy battles and can help rally support. Reach out and join or create coalitions so you can create a cohesive message that combats the myths perpetuated by utilities.<\/li>\n<li><strong>Educate ratepayers<\/strong>\u00a0\u2013 Ensure customers understand the full picture.<\/li>\n<li><strong>Engage with legislators<\/strong>\u00a0\u2013 Bring these issues to the attention of your state representatives. Many do not fully understand the long-term benefits of distributed solar.<\/li>\n<li><strong>Encourage public testimony<\/strong>\u00a0\u2013 Utilities rely on a lack of public opposition. Mobilize customers to submit comments and attend hearings.<\/li>\n<\/ul>\n<p>Policies can change if they are brought into the light. Public support has reversed or mitigated net-metering rollbacks in several states, so don\u2019t assume the fight is lost.<\/p>\n<h3><strong>Educating customers and debunking the cost-shift myth<\/strong><\/h3>\n<div id=\"attachment_108513\" style=\"width: 510px\" class=\"wp-caption alignright\"><a href=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Virtue-solar-stock-commercial-install.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-108513\" class=\"size-medium wp-image-108513\" src=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Virtue-solar-stock-commercial-install-500x325.jpg\" alt=\"\" width=\"500\" height=\"325\" srcset=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Virtue-solar-stock-commercial-install-500x325.jpg 500w, https:\/\/\/wp-content\/uploads\/2025\/02\/Virtue-solar-stock-commercial-install-368x238.jpg 368w, https:\/\/\/wp-content\/uploads\/2025\/02\/Virtue-solar-stock-commercial-install.jpg 770w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><p id=\"caption-attachment-108513\" class=\"wp-caption-text\">Credit: Virtue Solar<\/p><\/div>\n<p>A key part of advocacy is ensuring that customers understand why utilities&#8217; arguments against net metering are flawed. Utilities claim that rooftop solar shifts costs onto non-solar customers, but <a href=\"https:\/\/solarunitedneighbors.org\/wp-content\/uploads\/2021\/01\/Myth-of-the-Solar-Cost-Shift-FINAL.pdf\">studies<\/a> have repeatedly found little to no evidence of this. In reality, distributed solar benefits all ratepayers by reducing strain on the grid, lowering peak demand and decreasing the need for expensive grid infrastructure upgrades.<\/p>\n<p>If utilities were truly concerned about cost-shifting, they would apply the principle evenly across their entire business model. Instead, they selectively target solar while ignoring the massive cost shifts inherent in their operations:<\/p>\n<ul>\n<li><strong>Infrastructure costs for industrial customers<\/strong>\u00a0\u2013 Residential ratepayers typically subsidize the cost of grid expansions and power plants, even if the added demand comes from other sectors, such as industrial data centers \u2014 yet utilities never cite this as an unfair cost shift.<\/li>\n<li><strong>Rural vs. urban subsidies<\/strong>\u00a0\u2013 Rural customers require substantially more investment per capita to provide electric service, but urban customers pay the same rates, effectively subsidizing rural infrastructure costs.<\/li>\n<li><strong>High energy users vs. low energy users<\/strong>\u00a0\u2013 All residential customers pay the same base rate, yet those who consume more electricity place a greater burden on grid infrastructure. In many cases, lower-income households with lower energy usage are subsidizing wealthier, higher-consuming households.<\/li>\n<\/ul>\n<p>By equipping customers with this knowledge, solar companies can push back against utility misinformation and rally stronger public support for fair energy policies.<\/p>\n<h3><strong>Preparing for the worst: Expanding into storage<\/strong><\/h3>\n<div id=\"attachment_108514\" style=\"width: 510px\" class=\"wp-caption alignright\"><a href=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Enphase-5P-batteries-Virtue-Solar-stock-storage.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-108514\" class=\"size-medium wp-image-108514\" src=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Enphase-5P-batteries-Virtue-Solar-stock-storage-500x325.jpg\" alt=\"\" width=\"500\" height=\"325\" srcset=\"https:\/\/\/wp-content\/uploads\/2025\/02\/Enphase-5P-batteries-Virtue-Solar-stock-storage-500x325.jpg 500w, https:\/\/\/wp-content\/uploads\/2025\/02\/Enphase-5P-batteries-Virtue-Solar-stock-storage-368x238.jpg 368w, https:\/\/\/wp-content\/uploads\/2025\/02\/Enphase-5P-batteries-Virtue-Solar-stock-storage.jpg 770w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><p id=\"caption-attachment-108514\" class=\"wp-caption-text\">Enphase&#8217;s IQ Battery 5P. Credit: Virtue Solar<\/p><\/div>\n<p>The upside to bad net-metering policies is that they make batteries a necessary investment. In California, the <a href=\"https:\/\/eta-publications.lbl.gov\/sites\/default\/files\/ca_nem_3.0_technical_brief.pdf\">battery attachment rate<\/a> skyrocketed to 60% under NEM 3.0, up from just 10% under the old system. Hawaii, which moved away from net metering years ago, now sees battery attachment rates exceeding 90%.<\/p>\n<p>Batteries allow homeowners to self-consume the energy they generate, reducing reliance on net metering altogether. Instead of exporting excess solar power to the grid at reduced rates, homeowners can store that energy onsite and draw on it when needed. While it\u2019s true that fewer homeowners may choose to install solar in the absence of strong net-metering policies, those who do are more likely to invest in complete solar + battery backup systems. This increases the overall value of each job, even if total installation volume decreases.<\/p>\n<p>What solar companies can do now:<\/p>\n<ul>\n<li><strong>Position yourself as a battery expert<\/strong>\u00a0\u2013 If you haven\u2019t found a home battery package that you like, now is the time to learn one (or two) well, and get established with your reps and vendors.<\/li>\n<li><strong>Educate homeowners on the tax credit<\/strong>\u00a0\u2013 As of now, batteries qualify for the 30% federal tax credit, making them more affordable.<\/li>\n<li><strong>Optimize for self-consumption<\/strong>\u00a0\u2013 With lower export rates, customers will benefit most from using their solar power directly. Helping customers design systems that prioritize on-site energy use will ensure they still see financial benefits despite net-metering reductions.<\/li>\n<\/ul>\n<h3><strong>Reflecting on a decade of solar growth<\/strong><\/h3>\n<p>Despite challenges to net-metering policies, the solar industry has witnessed remarkable growth over the past decade, offering a positive outlook for the future. The rapid advancements in battery technology, decreasing costs and growing environmental awareness suggest a promising future for solar panels and storage. By staying informed about policy changes, embracing innovations like energy storage and advocating for supportive policies, companies can continue to thrive and contribute to a sustainable energy landscape.<\/p>\n<hr \/>\n<p><em>Matt Powers is the founder of\u00a0<a href=\"https:\/\/www.virtuesolar.com\/\">Virtue Solar<\/a>, a solar installation company in Charlottesville, Virginia. Matt is a Master Electrician with over 10 years of experience installing and managing solar operations. Matt is passionate about sustainability, outdoors, rock-climbing, local food and music, and wants you to have a great day.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Net-metering policies are shifting across the country, and solar installation companies have a right to be concerned. California\u2019s NEM 3.0 slashed export compensation rates, Hawaii transitioned to a self-supply model and states like Arizona and West Virginia have significantly reduced net-metering rates. Now Virginia is in the crosshairs, with Appalachian Power Company (APCo) proposing to&hellip;<\/p>\n","protected":false},"author":18117,"featured_media":108512,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1759,3004,7],"tags":[],"class_list":{"2":"type-post","10":"entry","11":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Net-metering changes are sweeping the country. Here\u2019s how solar companies can prepare<\/title>\n<meta name=\"description\" content=\"Net-metering policies are shifting across the country, and solar installation companies have a right to be concerned. California\u2019s NEM 3.0 slashed export\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/\/2025\/02\/net-metering-changes-are-sweeping-the-country-heres-how-solar-companies-can-prepare\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net-metering changes are sweeping the country. Here\u2019s how solar companies can prepare\" \/>\n<meta property=\"og:description\" content=\"Net-metering policies are shifting across the country, and solar installation companies have a right to be concerned. 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