The Economic Value of PV and Net Metering to Residential Customers in California

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In this paper, we analyze the bill savings from PV for residential customers of the California's two largest electric utilities, under existing net metering tariffs as well as under several alternative compensation mechanisms. We find that economic value of PV to the customer is dependent on the structure of the underlying retail electricity rate and can vary quite significantly from one customer to another. In addition, we find that the value of the bill savings from PV generally declines with PV penetration level, as increased PV generation tends to offset lower-priced usage. Customers in our sample from both utilities are ... continued below

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Darghouth, Naim; Barbose, Galen & Wiser, Ryan May 17, 2010.

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In this paper, we analyze the bill savings from PV for residential customers of the California's two largest electric utilities, under existing net metering tariffs as well as under several alternative compensation mechanisms. We find that economic value of PV to the customer is dependent on the structure of the underlying retail electricity rate and can vary quite significantly from one customer to another. In addition, we find that the value of the bill savings from PV generally declines with PV penetration level, as increased PV generation tends to offset lower-priced usage. Customers in our sample from both utilities are significantly better off with net metering than with a feed-in tariff where all PV generation is compensated at long-run avoided generation supply costs. Other compensation schemeswhich allow customers to displace their consumption with PV generation within each hour or each month, and are also based on the avoided costs, yield similar value to the customer as net metering.

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  • American Solar Energy Society (ASES) National Solar Conference, Phoenix, AZ, May 17-22, 2010

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  • Report No.: LBNL-3539E
  • Grant Number: DE-AC02-05CH11231
  • Office of Scientific & Technical Information Report Number: 983789
  • Archival Resource Key: ark:/67531/metadc1013500

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Office of Scientific & Technical Information Technical Reports

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  • May 17, 2010

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  • Oct. 14, 2017, 8:36 a.m.

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  • Oct. 17, 2017, 8:11 p.m.

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Darghouth, Naim; Barbose, Galen & Wiser, Ryan. The Economic Value of PV and Net Metering to Residential Customers in California, article, May 17, 2010; Berkeley, California. (digital.library.unt.edu/ark:/67531/metadc1013500/: accessed December 12, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.