  The rapid growth of the behind-the-meter (BTM) distributed generation has led
to initiatives to reform the net energy metering (NEM) policies to address
pressing concerns of rising electricity bills, fairness of cost allocation, and
the long-term growth of distributed energy resources. This article presents an
analytical framework for the optimal prosumer consumption decision using an
inclusive NEM X tariff model that covers existing and proposed NEM tariff
designs. The structure of the optimal consumption policy lends itself to near
closed-form optimal solutions suitable for practical energy management systems
that are responsive to stochastic BTM generation and dynamic pricing. The short
and long-run performance of NEM and feed-in tariffs (FiT) are considered under
a sequential rate-setting decision process. Also presented are numerical
results that characterize social welfare distributions, cross-subsidies, and
long-run solar adoption performance for selected NEM and FiT policy designs.
