Jurisdictional Review of Net Energy Metering Reforms
As New Jersey considers the future of net energy metering (NEM), experts at The Brattle Group conducted a review of NEM reforms across the United States and selected international jurisdictions to inform the New Jersey Board of Public Utilities’ stakeholder process. The review examines how jurisdictions are adapting compensation for distributed energy resources while balancing economic efficiency, customer impacts, grid needs, clean energy goals, and continued solar deployment.
The analysis finds a broad shift toward net billing, with exported electricity increasingly compensated based on avoided costs rather than the full retail electricity rate. However, approaches vary considerably—from how avoided costs and export rates are calculated to the use of time-of-use rates, grid access charges, grandfathering provisions, and transition mechanisms.
Drawing on reforms in California, New York, Illinois, Hawaii, Arizona, Idaho, Michigan, North Carolina, and international markets, the review highlights the range of policy choices available as New Jersey evaluates a successor to its existing NEM framework.
