In a trend of interest to utilities, analysis recently conducted by Zpryme on federal data sets provides testimony that a transition in American energy production continues to gain momentum. An 18.3% increase in net metering capacity between 2020 and 2021 figures demonstrates that electric power generation continues its transition from its traditional one-way flow from power plant to energy consumer, and is now increasingly moving in a two-way, or bi-directional flow, with electricity being delivered from prosumers (localized renewable power producers) onto the grid.
Of further interest to the traditional cost recovery utility business model, analysis showed that from January to March 2021, cumulative net metering energy sold from customers to utilities totaled 482,403 MWh. Though this is a curious 29.9% decrease over the same time period in 2020, the amount represents a significant encroachment on utility revenue, a trend likely to continue.
Net metering is the billing mechanism utilities use to compensate prosumers for electricity they add to a utility’s grid. Net metering also acts as a gauge of renewable energy dissemination. According to Zpryme data analysis, residential, commercial, and industrial solar energy production was the primary technology source (about 98%) of new net metering interconnection agreements between utility and their customers.
Zpryme analysis also shows that by March 2021, U.S. non-net metering capacity – standalone renewable power generation – reached 3,295 MW, representing a 17.5% increase in capacity compared to March 2020. This will further erode utility revenue, likely prompting a review of alternative business model revenue streams.
Data and analysis for this report was conducted by Zpryme using U.S. EIA Form 861M detailed data.
Michael G. Albrecht
Bringing 10+ years experience conducting interviews, research and writing articles on the Digital Transformation of the electric grid, water and gas utilities. Areas of research include IT/OT Convergence, IIoT, AI/ML, 5G, Cloud, Blockchain, Smart Contracts, edge computing, renewable energy and battery storage, cybersecurity, data analytics, and evolving regulatory and policy activity. Work published in Powergrid International, Transmission & Distribution World, Utility Analytics, Energy Central, Smart Grid Insights, CMG Consulting, and Renewable Energy World. The driving force behind my work is a desire to deliver in-depth research and writing to utilities to assist their technology decision-making and marketing efforts during this period of significant digital transformation and business model transition.