Striving to diminish the reliance on imported energy resources and the influence of the power sector on climate change, the European Union and Latvia have set ambitious goals in the field of power supply development. The target for the year 2020 is to achieve a renewable energy source share of 20% in the end consumption. The European Union target for the year 2030 is to achieve a renewable energy source share of at least 32% in the end consumption. In Latvia, the corresponding target for this time period is 40%. One of recognised methods for reaching the set targets is based on the use of distributed low-capacity renewable energy source at households by equipping these with microgeneration equipment and transforming energy consumers into prosumers. Appropriate use of renewable energy source at households yields a long-term economic gain by increasing the competitiveness of households, at the same time diminishing the amount of CO2 emissions, increasing the share of renewable energy source use in the country and stimulating the attraction of investments. In order to stimulate distributed generation of electricity and increase the amount of renewable energy source used, a number of European Union countries, including Latvia, apply a net system, which is used in settling the payments for the energy generated or consumed. The net system is an instrument that fosters efficient use of energy and installation of low-capacity electricity-generating equipment at households. This system may be, and is, implemented in various ways. The adopted exact net system regulations influence not only the profitability of the operation of prosumers but also the power system and the other energy consumers. For this reason, it is very important to set up a balanced net system, which takes into account the possibilities and peculiarities of the power system in question as well as the interests of the community as a whole. The substantiation of such a system is the main goal of the present study. In order to achieve the set goal, the study solves the following main tasks: • The current situation regarding the use of low-capacity renewable energy source technologies (solar and wind power plants) at households along with the development prospects of these technologies in Latvia has been assessed; • A review and an analysis of the net systems in use have been conducted; • For estimating the economic indicators, network models have been synthesized, with connected prosumers, and verified; • By using the models synthesized and the database collected, the profitability of using RES at various alternatives of net system implementation has been assessed; • recommendations and suggestions have been developed regarding the development of normative acts regulating the net system as well as for consumers and network operators.