Solar Energy’s Rate Designs

When distributed solar energy isn’t used on the grid, it transfers into solar-plus-storage. This triggers the obstacle to make economies of scale to decrease its costs to levels of competitive with traditional generation. Growth trends show the penetration level is coming in California and Massachusetts.

NEM Introduction

Net energy metering (NEM) is the policy that renewable energy rely on its influence for growth is evolving. Policymakers are experimenting new rate designs to drive solar-plus-storage growth the way NEM drove solar energy.

This is why the new policy debates surfaced with utilities and solar energy advocates at the state level and utility commissions. The Center for Energy Efficiency and Renewable Technologies (CEERT) was one of the groups that highly supported California’s original solar energy mandate and its increases.

California has transformed into large deployments of clean energy, distributed resources. The state’s mission of "just building MWs" must change to appropriately service the grid and fulfill the state's climate goals as well, Executive Director V. John White told Utility Dive.

“We are seeing a shift away from incentives for deployment to incentives that encourage these resources to add value to the grid and do work or provide services the grid needs,” he said. Two instances of this shift; time-of-use rates and three-part rates with demand charges have materialized in policy actions in the U.S.

Policy Shape Shifting ​​​​​​

Updated results from the North Carolina Clean Energy Technology Center (NCCETC) Q1 2018 50 States of Solar show renewable energy policy debates are accelerating. Contention continues for solar-related issues by NCCETC for set charges, NEM levels, and caps. “But the dirty little secret of solar is that the more we add, the less it’s worth,” CEERT’s White said.

“We are now seeing new tariffs that do not encourage rooftop solar by themselves."Where higher penetrations and growth trajectories exist, policymakers are designing rates and incentives to protect solar-plus-storage from conflict between clean energy advocates, utilities, and their allies over costs and caps.

More accurate rate designs and incentives are designed for solar-plus-storage to be an investment to the electric distribution system that utilities will choose over traditional solutions, CEERT’s White said. “The challenge is to use portfolios of renewables technologies that combine distributed solar with storage and other distributed energy resources (DER) to provide system needs.”

The change for rate designs and incentives that contradicts solar-only growth of DER that’s manifesting, Proudlove said. Key variables for electric vehicles (EVs) and “the solar-plus-storage revolution,” she added. If you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool.

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