ICF International recently released a white paper that aims to better create a methodology for assessing the true value of solar. Authored by Steven Fine, Ankit Saraf, Kiran Kumaraswany and Alex Anich, the paper looks at the current state of value of solar (VOS) analysis and proposes what they believe to be a more holistic approach – one that can be uniformly applied across various utility service areas.
The report offers several methodological approaches on potential VOS components including energy, avoided/deferred generation capacity, avoided transmission and distribution losses and capacity, grid support services, environmental costs and benefits and security.
After review and consideration of various methodologies, the authors lay out a roadmap for achieving a better consensus VOS and suggest their new VOS calculation could be an input in calculating the retail credit net energy metering (NEM) subsidy under a Value of Solar Tariff (VOST). They also believe the new calculation could be used to guide largeer investment and market decisions for utilities, regulators and the broader solar industry.
Click here to read the free white paper.