Distributed Solar Transactions: NEM and Beyond MEC Conference October 2013. About SEPA. Educational 501(c)3 non-profit. 430+ Utilities. 52% of electricity customers. Formed by utilities for utilities 20 years of service Balanced perspective
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Distributed Solar Transactions:
NEM and Beyond
Educational 501(c)3 non-profit
52% of electricity customers
of installed solar capacity
Is net metering in and of itself the problem?
Or is it net metering in combination with how rates are currently designed?
Impact on shareholders
(Between rate cases)
Impact on non-solar ratepayer
Not Typically Impacted
For more information, see SEPA’s “Ratemaking, Solar Value and Solar Net Energy Metering – a Primer” (July 2013)
Demand-based Rate Design
Volumetric Rate Design
The Value of Solar (VOS) transaction is based on a rate, reflecting the benefits and costs of distributed PV resources, which is offered to customers in exchange for PV output
Attributes of the VOS transaction model
CPS Energy – VOS Study
Source: T. Hoff et al, “The Value of Distributed Photovoltaics to Austin Energy and the City of Austin”; March 17, 2006
Calculating a Value of Solar is only the first step
Level of Engagement
Phases of Process