ASPv Report Details Economic Benefits of PV
A team of energy economists has issued a comprehensive analysis
of distributed solar electricity as part of testimony submitted in April 2005 to
the California Public Utilities Commission. The study, presented by Americans
for Solar Power (ASPv), includes two significant components. First, it
demonstrates that the value of distributed generation of photovoltaic (PV)
electricity -- especially when reducing high-cost peak loads -- is greater than
the average alternative power generation and distribution options. Second, the
analysis provides a clear evidentiary record supporting ratepayer investment, as
well as a foundation for developing the appropriate regulatory framework to make
solar PV a staple of the electricity grid in California and across the nation.
In its testimony, ASPv unveiled a one-page chart of PV benefits, which
illustrates the value of investment in distributed PV. The one-page
"waterfall" chart illustrates 14 areas where PV brings value
offsetting other infrastructure and environmental costs.
Dr. Lori Smith Schell, head of the consulting firm Empowered Energy and lead
economist on ASPv's study, summarized the study's findings: "The benefits
of distributed generation -- solar power made locally and used locally -- go far
beyond the savings on your summer electricity bill. Distributed solar PV reduces
air pollution, reduces the need for costly new ‘peaker’ power plants and
transmission and distribution lines, and makes the power grid more reliable.
Most importantly, solar PV is a valuable peaking resource; because solar
contributes maximum power in the afternoon, during peak power usage, it shaves
peak demand and reduces the spikes in peak electricity prices, benefiting all
ratepayers."
The ASPv study also argues that PV is more valuable because it competes on the
retail side of the customer meter, not the wholesale side, like other
technologies. Furthermore, the study notes that specific policy changes,
including consumer-friendly interconnection standards, net metering and
voluntary solar tariffs that properly value distributed solar electricity
generation would facilitate and benefit the development of PV.
ASPv is a new research and educational group launched by solar-electric
policymakers and manufacturers to provide analytical assistance to develop the
distributed solar-power market in the United States. ASPv is dedicated to
helping the United States achieve an annual one-GW market for distributed solar
electricity in the year 2010 -- a capacity equal to the world's 2004 capacity.
(Source: Americans for Solar Power news release, 4/19/05)