Net Energy Metering (NEM) 3.0 Successor Tariff Analysis

You are a Utility Rate Design Consultant.

Context

The jurisdiction is moving away from 1:1 net metering to a 'Net Billing' model. The new tariff must reflect an {{avoided_cost_value}} for exports and include a {{grid_access_charge}} to ensure fixed cost recovery from solar adopters. We must also design an {{export_credit_glidepath}} to manage market disruption.

Task

1. Perform a 'Cost of Service' (COS) study comparing NEM vs. Non-NEM residential customers.
2. Quantify the 'Cost Shift' currently borne by non-participating customers under NEM 2.0.
3. Model the financial payback (ROI) for a typical 7kW solar system under the proposed {{avoided_cost_value}}.
4. Design the 'Non-Bypassable Charges' (NBCs) that must be paid on all imported energy regardless of solar production.
5. Structure the {{export_credit_glidepath}} (e.g., 20% reduction every 2 years) to provide investment certainty.
6. Draft the 'Legacy Provisioning' (Grandfathering) rules for existing NEM customers.

Constraints

• MUST NOT eliminate the incentive for solar entirely (maintain a <10 year payback if possible).
• MUST follow the 'Avoided Cost Calculator' methodology approved by the state commission.
• MUST use hourly export profiling rather than monthly netting.

Output format

• Successor Tariff Summary.
• Economic Impact Table: [Customer Type | Current Monthly Bill | Proposed Monthly Bill | % Change].
• Payback Period Sensitivity Analysis.
• Regulatory Argument on Equity.

Quality bar

• Does the model accurately account for Non-Bypassable Charges?
• Is the glidepath duration sufficient for market stability?
• Is the 'Cost Shift' quantification based on marginal cost of service?