Tariffs Can Be Structured to Encourage Photovoltaic Energy

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The solar power market is growing at a quickening pace, fueled by an array of national and local initiatives and policies aimed at improving the value proposition of customer-sited photovoltaic (PV) systems. Though these policies take many forms, they commonly include up-front capital cost rebates or ongoing production incentives, supplemented by net metering requirements to ensure that customer-sited PV systems offset the full retail rate of the customer-hosts. Somewhat less recognized is the role of retail rate design, beyond net metering, on the customer-economics of grid-connected PV. Over the life of a PV system, utility bill savings represent a substantial ... continued below

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Wiser, Ryan; Mills, Andrew; Barbose, Galen & Golove, William August 31, 2008.

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The solar power market is growing at a quickening pace, fueled by an array of national and local initiatives and policies aimed at improving the value proposition of customer-sited photovoltaic (PV) systems. Though these policies take many forms, they commonly include up-front capital cost rebates or ongoing production incentives, supplemented by net metering requirements to ensure that customer-sited PV systems offset the full retail rate of the customer-hosts. Somewhat less recognized is the role of retail rate design, beyond net metering, on the customer-economics of grid-connected PV. Over the life of a PV system, utility bill savings represent a substantial portion of the overall economic value received by the customer. At the same time, the design of retail electricity rates, particularly for commercial and industrial customers, can vary quite substantially. Understanding how specific differences in rate design affect the value of customer-sited PV is therefore essential to supporting the continued growth of this market.

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  • Journal Name: Natural Gas and Electricity; Journal Volume: August 2008

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  • Report No.: LBNL-1474E
  • Grant Number: DE-AC02-05CH11231
  • Office of Scientific & Technical Information Report Number: 948123
  • Archival Resource Key: ark:/67531/metadc894467

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  • August 31, 2008

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  • Sept. 27, 2016, 1:39 a.m.

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  • Jan. 4, 2017, 6:45 p.m.

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Wiser, Ryan; Mills, Andrew; Barbose, Galen & Golove, William. Tariffs Can Be Structured to Encourage Photovoltaic Energy, article, August 31, 2008; Berkeley, California. (digital.library.unt.edu/ark:/67531/metadc894467/: accessed September 26, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.