Commission advances net metering investigation, declines Wisconsin-specific value-of-solar study

The commission voted to advance a generic investigation into net metering and parallel-generation purchase rates (docket 5-EI-157) and decided not to direct the preparation of a Wisconsin-specific value-of-solar (VOS) study at this time.

The decision sets a modified scope for the investigation that directs staff to (1) analyze distributed photovoltaic (DPV) and distributed energy resource (DER) adoption and capacity including customer counts, participation rates, projected growth and demographics, and participation in other load-side programs; (2) evaluate various net metering rate designs, including comparison to utility-owned solar; and (3) assess the effects those rate designs would have on DPV/DER adoption, participation in other load-side programs, nonparticipating customers, low-income and marginalized customers, and renewable-energy goals.

Chair Strand said the investigation began after proposals in the 2023 rate cases and that a notice of investigation was issued on March 14, 2024. The commission asked Berkeley Lab for a literature review to inform a possible VOS study; that review was delivered January 13, 2025 and distributed to parties on February 25, 2025. Chair Strand told colleagues the VOS literature and stakeholder comments showed “clarity on this topic is highly elusive,” and stated, “the potential juice is not worth the very significant and complicated squeeze it would require,” explaining the commission would not direct a Wisconsin-specific VOS study now.

Commissioner Nieto and Commissioner Hawkins agreed with Chair Strand’s view that the commission should not require a Wisconsin-specific VOS study at this stage and supported moving forward with the broader investigation scope. Commissioner Nieto proposed and the commissioners adopted clarified scope language intended to combine and streamline items presented in the staff memo so the investigation remains flexible rather than overly prescriptive.

Commission staff will proceed under the approved scope to solicit stakeholder input and conduct the analyses described above. The motion to advance the generic investigation was made and seconded and was approved with commissioners voting in favor.

Background: the investigation traces to contested requests from utilities during the 2023 rate case cycle and to the commission’s decision then to investigate net metering topics further rather than adopt the proposed tariff changes. The notice of investigation and the Berkeley Lab literature review are part of the docket record used to shape today’s scope decision.

Next steps: staff will implement the scope discussed and solicit comments in the generic docket; no schedule for completion of specific analyses was set during the meeting.