Compensating Solar Prosumers Using Buy-All, Sell-All as an Alternative to Net Metering and Net Purchasing: Total Use, Rebound, and Cross Subsidization

Peter M. Schwarz, Nathan Duma, and Ercument Camadan

The Energy Journal, 2023, vol. Volume 44, issue Number 1

Abstract: Electric utilities are challenging net metering, which compensates owners of residential solar photovoltaic systems by crediting solar generation at the retail rate instead of reflecting the value of solar to the utility. In 2012, Austin Energy was the first US utility to replace net metering with Buy-All, Sell-All, where prosumers purchase all electricity at the retail rate and sell all electricity at the utility's value of solar rate. Using Austin Energy customer data for hot weather months, a load curve comparison of comparably sized houses shows that prosumers have higher consumption than non-solar customers during system peak hours. Regression analysis finds that prosumers use more energy for air conditioning, with a rebound effect of 20%. A simulation shows that under net metering and net purchasing almost 7% of prosumer bills would be paid by non-solar customers while total subsidy would be 18% due to the inclusion of increasing block rates.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=3932 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:ej44-1-schwarz

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().