Net metering system for renewable electricity generation. (Adobe Stock photo #532994345/VectorMine)
Decisions on Net-Energy Metering to Shape the Future of Renewable Energy in the State
Kyana Burgess
Amid growing concerns about the uncertainty of energy prices, New Hampshire is at a critical juncture in shaping its renewable energy policies. The New Hampshire Public Utilities Commission (PUC) is considering the future of net-energy metering (NEM), a billing mechanism that provides residents, businesses, municipalities, and schools the ability to invest in small-scale grid-tied renewable generation systems. The NEM program helps state electricity users manage energy costs while expanding in-state clean energy generation, benefiting all NH ratepayers, whether they own solar or not, by reducing our reliance on imported energy. Understanding the potential impact and the far-reaching implications of the PUC’s decision is crucial, as their final order will determine the financial viability of local solar energy projects.
New Hampshire’s NEM program has long served as the cornerstone of economic viability for solar installations. Under this system, small-scale solar generators are credited for each surplus kilowatt hour (kWh) of electricity they produce and export to the grid. By receiving this credit, NEM ensures that they receive equitable compensation for their energy contributions. Homeowners with solar panels can generate credits during sunny hours and use those credits to offset their electricity consumption later when the sun is not shining. By allowing solar panel owners to generate their electricity and receive a credit for the excess energy exported back to the grid, NEM encourages the adoption of clean distributed energy generation.
As millions of vehicles, homes, and businesses electrify, substantial new electric generation sources will need to be built. NEM will be instrumental to this clean energy transition. Without it, it is unlikely that New Hampshire builds the resources needed to electrify the economy and will have to rely on the import of more expensive electric power.
In the past, New Hampshire solar customers were credited at the full retail rate for each kilowatt-hour (kWh) of extra electricity they generated. However, in 2017, the NH PUC made a decision to reduce this rate due to concerns that these credits for excess generation might lead to an increase in electric rates for those who did not have solar panels. This decision was intended to be a temporary compromise while the PUC and stakeholders engaged in a quantitative evaluation of the value of distributed energy resources, including solar and small-scale hydropower.
The NH Department of Energy (DOE) commissioned a study to conduct that evaluation, which was completed in 2023. That study, by Dunsky Energy + Climate Advisors, found that the value of solar in New Hampshire stemmed from increasing electricity supply while also reducing the required investment in local distribution infrastructure and the larger transmission system. This value was provided to all ratepayers regardless of whether they owned solar or not. However, when Clean Energy NH (CENH) re-analyzed the Dunsky study, we found that non-solar customers benefit more from local solar estimated in the original study. The re-analysis showed a clear reduction in non-solar owning customers’ electric bills, as a result of solar panels being installed by their neighbors. The takeaway is that solar has a positive impact for all, and without NEM, electric bills will rise. Based on that re-analysis, CENH proposed an expansion of the current NEM credit issued to New Hampshire residents, businesses, municipalities, and schools for the clean energy they generate.
Despite this, the future of NEM in New Hampshire is faced with unprecedented challenges. In the coming months, the NH PUC will determine the level of compensation for local renewable energy exporters. This decision, which will occur in PUC Docket No. DE 22-060, holds significant implications for the future of solar in the state. This docket is crucial in deciding the financial viability of solar projects within New Hampshire, as it will determine the shape of the NEM credits for exported electricity. If the NEM credit provided to solar owners is drastically reduced, this decision would render solar energy financially unfeasible for residents, committees, businesses, and industry in the Granite State, impacting both the economy and the opportunities to access affordable solar resources.
Hearings in the NEM docket are likely to be scheduled for August of this year. If preserving the access to solar in New Hampshire is important to you, now is the time to let the commissioners know you’re paying attention. Send an email with your thoughts to ClerksOffice@PUC.NH.gov with “Comment on Docket DE 22-060” in the subject line.
Kyana Burgess serves Communications Coordinator at Clean Energy NH. In this role, she supports the advancement of the organization’s strategic communication goals and digital media presence.
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