Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174937
Authors: 
Gautier, Axel
Jacqmin, Julien
Poudou, Jean-Christophe
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6814
Abstract: 
Prosumers are households that are both producers and consumers of electricity. A prosumer has a grid-connected decentralized production unit (DPU) and makes two types of exchanges with the grid: energy imports when the local production is insuffcient to match the local consumption and energy exports when local production exceeds it. There exists two systems to measure the exchanges: a net metering system that uses a single meter to measure the balance between exports and imports and a net purchasing system that uses two meters to measure separately power exports and imports. Both systems are currently used for residential consumption. We build a model to compare the two metering systems. Under net metering, the price of exports paid to prosumers is implicitly set at the price of the electricity that they import. We show that net metering leads to (1) too many prosumers, (2) a decrease in the bills of prosumers, compensated via a higher bill for traditional consumers, and (3) a lack of incentives to synchronize local production and consumption.
Subjects: 
decentralized production unit
grid regulation
solar panel
grid tariff
storage
JEL: 
D13
L51
L94
Q42
Document Type: 
Working Paper

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