Grid-Connected Distributed Generation: Compensation Mechanism Basics

Date Published

10/2017

Abstract

This short report defines compensation mechanisms for grid-connected, behind-the-meter distributed generation (DG) systems as instruments that comprise three core elements: (1) metering & billing arrangements, (2) sell rate design, and (3) retail rate design. This report describes metering & billing arrangements, with some limited discussion of sell rate design. We detail the three possible arrangements for metering & billing of DG: net energy metering (NEM); buy all, sell all; and net billing.

Year of Publication

2017

Report Number

NREL/BR-6A20-68469

Publication Type

Report

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