Distributing Renewable Energy

What do dairy farmers, homeowners, auto repair shops, and Izaak Walton League chapter houses have in common? They are all owners of small-scale renewable energy systems that generate power and then feed it into the electricity grid in an arrangement known as "net metering" – an arrangement that benefits energy consumers and utilities. Energy consumers want the opportunity to generate their own clean power. For utilities, small-scale renewable energy projects help diversify their mix of energy resources, empower their customers, enhance the local transmission grid, and spur private investment in clean energy.

Solar panels on chapter houses, manure digesters at dairy farms, and even small-scale wind turbines can generate enough electricity to power the owner's needs. Sometimes these systems generate more power than needed, so electricity is fed back to the utility grid. At other times, these systems produce less electricity than is needed and the owner draws power from the grid. At the end of the billing cycle, generation and consumption are balanced and owners either pay a utility bill or receive a credit from the utility. This flexibility makes individual investments in renewable resources much more cost effective.

Distributed renewable energy systems are becoming more prevalent as renewable energy technologies improve and become more cost competitive. Homeowners, farmers, businesses, and IWLA members are taking steps toward energy independence. For progress to continue, state laws governing energy production and distribution from small-scale renewable energy systems must be updated to eliminate roadblocks. In Minnesota, League energy staff are working to improve outdated state policies that govern such projects so that distributed renewable energy becomes a growing part of the clean energy economy.

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