Net-metering benefits for residential customers: the economic advantages of a proposed user-centric model in Italy

Contrary to many expectations, the development of smart (mini-)grids is slow, notwithstanding drastic improvements in innovative technologies, and the reasons for this are not strictly technical. The problem lies in regulatory barriers. Moreover, the current business models accommodate utilities more so than customers. Net metering is a key enabling factor for smart (mini-)grids. This article addresses the economic benefits of net metering for residential customers. Energy demands for individual apartments and common areas are calculated using the daily energy-consumption behavior of occupants for typical days of each month of the year. Photovoltaic (PV ) generation is estimated for a residential building in Italy. The proposed net-metering scheme is applied on the aggregate energy demand of a selected building. The current energy billing without modifications is compared to the case in which net-metering tariffs are applied to the billing. Results show that noticeable savings can be obtained in the net-metering case.