The N.C. Clean Energy Technology Center (NCCETC) released its 2024 annual review and Q4 update edition of The 50 States of Solar. The quarterly series provides insights on state regulatory and legislative discussions and actions on distributed solar policy, with a focus on net metering, distributed solar valuation, community solar, residential fixed charges, residential demand and solar charges, third-party ownership and utility-led rooftop solar programs.
The report finds that 47 states, plus the District of Columbia and Puerto Rico, took some type of distributed solar policy action during 2024, with the greatest number of actions related to net metering policies, residential fixed charge increases and community solar. The most active states were Michigan, California, Virginia, Arizona, Maine, Oregon, Connecticut, Massachusetts and Washington.
2024 Policy Action on Net Metering, Rate Design, and Solar Ownership
The report identifies ten solar policy trends across the year:
- New states moving beyond traditional net metering;
- Distributed solar programs integrating provisions for multifamily buildings;
- Utilities requesting approval for large residential fixed charge increases;
- States using formal studies to inform net metering successor tariff design;
- Community solar program updates being dedicated to low-income participation;
- States and utilities reaching net metering successor triggers;
- Stakeholders opposing previously-approved distributed generation charges;
- States considering federal funding in distributed solar program design;
- Energy storage being incorporated into distributed solar (re)designs; and
- Utilities differentiating residential rates based on customer type.
“Following a period of relatively little activity, 2024 saw the reemergence of requests for large fixed charge increases,” said Brian Lips, senior project manager. “Starting with California, where the Commission approved income-graduated fixed charges, multiple utilities requested increases of 100% or more.”
A total of 269 state and utility level distributed solar policy and rate changes were proposed, pending or decided in 2024. The report notes that ten of the most active states in 2024 for solar policy developments were:
- Virginia, where lawmakers expanded the state’s shared solar program and Appalachian Power proposed a net metering successor;
- West Virginia, where regulators approved a net metering successor for Monongahela Power and Potomac Edison, while Appalachian Power and Wheeling Power proposed a successor of their own;
- Washington, where lawmakers initiated a new distributed solar valuation study, and regulators extended Puget Sound Energy’s net metering program even if its cap is reached;
- California, where regulators established a framework for income-based fixed charges and approved a new community solar program;
- Connecticut, where lawmakers extended the community solar program by two years and initiated a study of solar successor programs, while regulators modified existing programs;
- New Jersey, where regulators amended remote net metering rules, proposed changes to the new community solar program, and began a stakeholder process for a net metering successor;
- Colorado, where lawmakers revamped the community solar program to focus on income-qualified customers, and regulators implemented a new fixed credit option for community solar;
- Arizona, where regulators sunset Arizona Public Service’s utility-owned rooftop program and approved a new grid access charge for solar customers;
- Alaska, where lawmakers adopted community energy program rules, and regulators considered increasing the state’s aggregate cap on net metering;
- Maryland, where regulators began rulemakings for a new community solar program and net metering participation in time-of-use rates.
“During 2024, we continued to see states move away from traditional net metering and toward alternative compensation structures, like net billing, for distributed generation,” said Autumn Proudlove, managing director of policy & markets at NCCETC. “The focus of these changes has been on netting intervals and export credit rates, while additional fees like demand charges and grid access charges, are generally not being included in these tariff designs.”
News item from the N.C. Clean Energy Technology Center (NCCETC)
