An optimization approach to parallel generation solar PV investments in the U.S. Two applications illustrate the case for tariff reform

Arne Kildegaard, Jordan Wente

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

We construct a model to optimize the economics of distributed generation photovoltaics (DGPV) for a parallel generation (behind-the-meter) application. Applying the model to the short-interval load and insolation data for two similar dairy operations in the U.S. Upper Midwest region, we find that highly site-specific differences in parameters lead to strikingly divergent results. Operating behind-the-meter strongly rewards real-time concurrence between on-site generation and on-site load. Compared to operating under a value of solar tariff (VOST) or net energy metering (NEM), we argue that parallel generation tariffs amplify the existing, irreducible uncertainties of project economics, and discourage DGPV investment.

Original languageEnglish (US)
Pages (from-to)295-302
Number of pages8
JournalEnergy Policy
Volume87
DOIs
StatePublished - Dec 2015
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2015 Elsevier Ltd.

Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.

Keywords

  • Net energy metering
  • Photovoltaics
  • Renewable energy
  • Value of solar tariffs

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