Environmental and Energy Law Update
        A blog from the attorneys of Verrill

        Beyond Net Metering: Solar Stakeholders Seek Common Ground

        December 31, 2015

        Since September, solar stakeholders have been participating in regular work sessions at the Maine Public Utilities Commission (PUC) to develop an alternative to Maine’s current net metering rules. Net metering or “net energy billing” allows utility customers who also generate some of their own power (with solar panels, for example) to pay only for the difference between the energy they generate and the energy they consume. This straightforward concept exists in some form in more than 40 states. But as rooftop solar continues to expand, utilities are beginning to seek alternatives to net metering rules around the country.

        Utility Perspective:

        From a utility’s perspective, customers who generate their own power and remain connected to the grid still rely on the grid like any other customer, but because of net metering, they may not pay their fair share of the costs to maintain the grid. Because a utility’s revenues are usually tied to sales, self-generating customers impact the utility’s revenues, reducing those revenues without a corresponding reduction in the cost of utility infrastructure. Even if the utility is able to make up the revenue shortfall, utilities argue that net metering will require them to recover more of their costs from customers that do not have the resources to install their own solar panels or other electric generation equipment.

        In Maine, the inevitable utility response to net-metering came in 2013-2014, when Central Maine Power Company (CMP), Maine’s largest electric utility, proposed a new “standby rate” in its rate plan proceeding before the PUC. As proposed, the standby rate would have imposed an additional charge for self-generating customers based on the customer’s demand for power from the grid. The proposal launched a backlash from solar advocates, businesses, universities, and many of CMP’s residential customers, and CMP withdrew its proposal.

        Public Advocate’s Proposal:

        After the fallout from CMP’s “standby rate” the Maine Legislature passed a resolve instructing the PUC to convene stakeholders and develop an alternative to net metering. Maine’s Public Advocate has taken a lead role in this process by proposing a “Solar Standard Buyer” (SSB) that would purchase and aggregate the energy generated from solar installations around the state. The theory is that the SSB will be able to offer long-term contracts to provide price stability for customers considering whether to make solar investments. In addition, the SSB will be able to aggregate and monetize the other attributes of solar power, such as Renewable Energy Credits (RECs) and capacity value.

        Value of Solar:

        One of the most contentious aspects of the stakeholder process has been determining the proper value to assign to a kilowatt hour of electricity generated by solar panels. Earlier this year, the PUC issued a report prepared by an outside consulting company that valued distributed solar at 33.7 cents/kwh, which includes 13.8 cents in avoided market costs and 19.9 cents in societal benefits, such as reduced pollution. The challenge for the stakeholders is to determine a value for solar that will stimulate solar installations while preserving some benefits for all utility customers. Getting the policy right involves a complex mix of forecasting future energy costs, estimating the full benefits of solar, and carefully phasing out support over time as the costs of solar installations continue to drop.

        Next Steps:

        The sixth and final stakeholder work session is scheduled for January 6, after which the PUC will report out a recommendation to the Maine Legislature’s energy committee. Solar advocates have some unexpected good news heading into the final work session: Congress has extended the Investment Tax Credit available for residential and commercial solar installations.

        Check back for updates on the final PUC recommendations and proposed legislation in the new year.

        Environmental and Energy Law Update

        The Environmental and Energy Law Update blog provides an analysis and discussion of the most critical and timely legal issues and announcements in the environmental, natural resource, and energy sectors.

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Press Releases

        97 Verrill Attorneys Recognized by Best Lawyers® 2027, Including Four Named Lawyers of the Year

        AUGUSTA, Maine, BANGOR, Maine, BOSTON, Mass., PORTLAND, Maine, and WESTPORT, Conn., (August 20, 2026) – Verrill is proud to announce that 97...
        Alerts and Newsletters

        SEC’s Proposed “Reg Crypto”: What Founders Need to Know

        Startup founders and emerging-growth companies have a number of options for raising capital under the federal securities laws, including Regulation D...
        Blog

        After 45 Years, the IRS Speaks on DCAP Nondiscrimination Testing – And It’s Good News

        Employers that provide a Dependent Care Assistance Program will be pleased to learn that for the first time in 45 years, the IRS has issued guidance...
        Media Mentions

        Robert Keach Discusses Bankruptcy Auction Strategy in Law360

        Verrill attorney Robert Keach spoke with Law360 article examining the complex bankruptcy auction process that resulted in the sale of 23 summer...
        Media Mentions

        Martha Gaythwaite Featured in Portland Press Herald Coverage of Sig Sauer Trial Victory

        Verrill attorney Martha Gaythwaite was highlighted in media coverage of a federal trial in Bangor involving firearm manufacturer Sig Sauer. As...
        Media Mentions

        Law360 Quotes Robert Keach on Senate Bill Affecting Small Business Restructurings

        Verrill attorney Robert Keach was recently quoted in a Law360 article discussing federal legislation that would permanently restore the $7.5 million...
        Alerts and Newsletters

        SAFEs and Preferred Stock – Key Deal Terms Every Founder Should Know

        SAFEs Before negotiating a term sheet for preferred stock, many early-stage companies, particularly at the seed stage, first raise capital through...
        Press Releases

        Verrill Welcomes Business Restructuring and Insolvency Attorney Nimra Tariq

        BOSTON, Massachusetts – Verrill is pleased to announce that Nimra Tariq has joined the firm’s Business Restructuring and Insolvency Group as an...
        Media Mentions

        Robert Keach Provides Commentary on First Brands Restructuring in Law360

        Verrill attorney Robert Keach was quoted in the Law360 article, "First Brands' Ch. 11 Plan Revives Angst Over Admin Claims," discussing First Brands...
        Press Releases

        Verrill Welcomes Construction Attorney Cassie Dufon

        PORTLAND, Maine – Verrill is pleased to welcome Cassie Dufon to the firm’s Construction Group as an Associate, resident in the firm’s Portland...
        Press Releases

        Verrill’s Wide-Ranging Private Wealth Law Practice Recognized in 2026 Chambers and Partners High Net Worth Guide

        BANGOR and PORTLAND, Maine and BOSTON, Mass. – Verrill attorneys Kenneth P. Brier, Anya F. Endsley, Kurt E. Klebe, Mary McQuillen, Nathaniel S....
        Blog

        Update on Status of Maine Packaging EPR

        In December 2024, Verrill published a blog post, Unwrapping Maine's Gift to the Environment: A New Packaging Stewardship Program Set to Launch in...