in News Departments > New & Noteworthy
print the content item

Fitch Ratings expects strong growth of U.S. net energy metering (NEM) policy as federal and state governments seek to further renewable energy goals. However, the electricity generated under NEM programs as a percentage of total electric retail sales will remain low, according to a new Fitch report.

The majority of consumer-produced NEM electricity - mainly through solar technology - is self-consumed, resulting in lost sales to the utility. According to the market analysis and ratings firm, excess NEM generation sold back to utilities represented just 0.01% of total electric retail sales in 2012.

A key driver of NEM growth is third-party financing of solar PV technology, which represents the largest proportion of net excess generation utilizing NEM programs, the report says.

According to Fitch, U.S. residential PV solar installations have had a compounded annual growth rate of 51% since 2005. In 2012, residential PV installations increased 62% to 488 MW, as compared to 2011, driven by the growth of third-party financing options. Third-party-owned systems now account for more than 50% of all new residential installations in most major residential markets.

A further NEM growth driver is new types of investor financing, Fitch says, noting the first securitization of distributed solar generation occurred in November. The report concludes that the securitization market provides a potential new source of efficient capital to fund the nascent solar generation installations while removing the high-cost barrier of entry for residential consumers.




Hybrid Energy Innovations

Hybrid Energy Innovations 2015
Latest Top Stories

To Help Combat Costly Electricity Theft, Emerging Markets Turn To Smart Grid Infrastructure

According to a new report, the world loses a whopping $89.3 billion to electricity theft annually, and emerging country markets are feeling a majority of the pain.


Report: Utilities Face Big Revenue Cuts From Distributed Energy Resources

According to a new report from Accenture, the growth of solar and other resources, such as energy storage, could mean significant losses for utilities.


NextEra To Acquire Hawaiian Electric In $4.3 Billion Merger Deal

If approved, the agreement between the two energy companies would produce one of North America's largest renewable energy players.


EPA Racks Up Over 1.6 Million Comments On Carbon Pollution Plan

Months after the U.S. Environmental Protection Agency released its Clean Power Plan, which will create new regulations for existing power plants, the agency says it has received loads of feedback to consider.


Smart Grid Interest Continues To Spread Among U.S. Rural Utilities

A new survey gauges rural smart grid efforts across the country and offers key findings, one of which is that nearly all utilities polled are doing something to modernize their systems.

S&C Electric_id176
edf_id180