Net Metering Changes Can Help to Reduce School Funding Disparities

Proposed legislation regarding net metering is before our legislature and I would suggest a twist on the subject that may also help with school funding. Net metering is the process by which small alternative energy producers with solar panels or wind turbines spin their electric meters backwards and earn credits for the electricity produced in excess of that used. Net metering helps to defray the costs of small scale energy production. The problem with current net metering rules is that the credit earned is limited, basically to the cost of the electricity used by the producer.

The proposed legislation seeks to expand the credit that may be earned so that a larger portion of the electricity costs may be defrayed. PSNH and others oppose the expansion because of its likely costs to them. I suspect there will be an accommodation that allows some expansion, but that will have limits.

Here is my suggestion. Expand the net metering rules to spur economic development in the State’s poorer communities by applying the new rules only in those communities with low equalized property values per pupil in school. If energy producers in poor towns are able to earn larger credits than others, this may spur additional development in these towns. Additional development will increase local property values and increased property values will reduce the extreme disparities in the ability of schools to be funded locally. Impacting the dynamics of school funding in this way will take time, but won’t cost the State any direct monies.