The Rocky Mountain Institute’s eLab has created a new report on solar power benefits and costs (distributed solar PV benefits and costs, to be specific). This is a critical effort, and a very useful report to help that effort along. Better valuation of distributed solar PV (DPV) is sorely needed in order to steer the quite complicated electricity system in the right direction (technically, financially, and politically).
“This analysis of current structural misalignments (including net-metering and volumetric rates) offers a foundation to support smart policymaking and electricity pricing structures across the country—which can help avert the impending collision of solar costs and grid prices,” an email to me from a Rocky Mountain Institute (RMI) staff member noted.
“Deciphering the costs and benefits of distributed energy services is critical to ensure better technical integration and economic optimization. As the penetration of DPV and other customer-sited resources increases, accurate pricing and market signals can help align stakeholder goals, minimize total system cost and maximize total net value.”