Public policy issues associated with feed-in tariffs and net metering: an Australian perspective

Daryl Biggar, Joe Dimasi

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review

Abstract

It has long been known that time-averaged and geographically averaged retail tariffs distort end-customer's incentives to use and invest in appliances and energy efficiency. This problem is even more acute when end-customers can invest in and use on-site generation and storage. What tariff should be paid for the output of that generation or storage? Should the customer be able to use that output to offset his/her own consumption? Should the customer be able to sell any surplus to neighbors at the local retail rate? This chapter shows that with current retail tariffs, these policies have both pros and cons. Net metering and peer-to-peer trade will remain controversial as long as retail tariffs are not cost reflective.

Original languageEnglish
Title of host publicationInnovation and Disruption at the Grid's Edge
Subtitle of host publicationHow Distributed Energy Resources are Disrupting the Utility Business Model
EditorsFereidoon P. Sioshansi
Place of PublicationLondon UK
PublisherAcademic Press
Chapter10
Pages187-205
Number of pages19
ISBN (Electronic)9780128117637
ISBN (Print)9780128117583
DOIs
Publication statusPublished - 16 May 2017
Externally publishedYes

Keywords

  • Australian regulations
  • Buy all/sell all
  • Community shared solar
  • Gross metering
  • Group net metering
  • Net metering
  • Peer-to-peer trade in electricity
  • Virtual net metering

Cite this

Biggar, D., & Dimasi, J. (2017). Public policy issues associated with feed-in tariffs and net metering: an Australian perspective. In F. P. Sioshansi (Ed.), Innovation and Disruption at the Grid's Edge: How Distributed Energy Resources are Disrupting the Utility Business Model (pp. 187-205). Academic Press. https://doi.org/10.1016/B978-0-12-811758-3.00010-3