Net Metering and Market Feedback Loops: Exploring the Impact of Retail Rate Design on Distributed PV Deployment

This report examines the impacts of net energy metering (NEM) and two competing feedback dynamics on U.S. distributed PV deployment through 2050 under different rate structures. The report confirms that rate structures with higher monthly fixed customer charges or PV compensation at low levels can dramatically erode aggregate customer adoption of PV. Moving toward time-varying rates may accelerate near- and medium-term deployment, but is estimated to slow adoption in the longer term.