%0 Report
%A Owen R Zinaman
%A Alexandra Aznar
%A Carl Linvill
%A Naïm R Darghouth
%A Timon Dubbeling
%A Emanuele Bianco
%D 2017
%G eng
%T Grid-Connected Distributed Generation: Compensation Mechanism Basics
%U https://www.nrel.gov/docs/fy18osti/68469.pdf
%8 10/2017
%X <div>This short report defines compensation mechanisms for grid-connected, behind-the-meter distributed generation (DG) systems as instruments that comprise three core elements: (1) metering &amp; billing arrangements, (2) sell rate design, and (3) retail rate design. This report describes metering &amp; billing arrangements, with some limited discussion of sell rate design. We detail the three possible arrangements for metering &amp; billing of DG: net energy metering (NEM); buy all, sell all; and net billing.</div>