Electricity systems are progressively transitioning from centralised supply models to decentralised frameworks, propelled by the increasing prominence of prosumers and distributed renewable energy sources. Net metering has been instrumental in facilitating this initial transition by allowing for the swift implementation of rooftop solar installations, especially in developing and transitioning economies. Nevertheless, as participation has expanded, volumetric netting has exposed inherent structural weaknesses, including cross-subsidisation, distorted price signals, and mounting pressure on distribution networks.
In response, European regulators and Energy Community contracting parties have increasingly promoted net billing as a more cost-reflective and system-compatible alternative, aligning prosumer incentives with market and network realities. This paper examines the regulatory shift from net metering to net billing, drawing on comparative experiences from Italy, Kosovo*, and Georgia. It places Georgia’s 2023 reform within this broader European context, emphasising both its alignment with EU principles and the remaining steps needed to fully integrate prosumers into the market.
(* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence.)
