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)