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Title: The Impacts of Changes to Nevada's Net Metering Policy on the Financial Performance and Adoption of Distributed Photovoltaics

Abstract

As the adoption of distributed photovoltaics (DPV) has continued to rapidly increase, a national conversation has begun about the efficacy of full-retail net metering as a means of achieving the diverse objectives of electricity pricing. This conversation has prompted studies that have primarily focused on the total costs and benefits of DPV. To compliment those studies, we here characterize the potential impacts of tariff design on the customer-economics and adoption of DPV, where recent changes in Nevada are taken as a case study. We show that an increase in fixed charges more strongly impacts the payback period of small systems, and a decrease in credit for exported electricity more strongly impacts the payback period of large systems. We project that these combined changes will reduce DPV adoption in Nevada; total capacity in 2030 was projected to reach up to 363 MW, with 226 MW having already been installed at the end of the second quarter of 2016. In contrast, if full retail net metering had continued, DPV capacity was projected to reach up to 1,280 MW at the end of 2030, which would account for an estimated 6.5% of the total sales of electricity by NV Energy at that time.more » We project that the DPV systems will decrease the gross revenue from bill collection by $48 million per year under the new tariffs, whereas the decrease in gross revenue could have reached $255 million per year if full retail net metering had been continued. Although these results are given in the context of Nevada, the trends shown are intended to help information similar upcoming decisions in other states.« less

Authors:
 [1];  [1];  [1]
  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1339521
Report Number(s):
NREL/TP-6A20-66765
DOE Contract Number:
AC36-08GO28308
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; 24 POWER TRANSMISSION AND DISTRIBUTION; net metering; distributed PV; photovoltaic; NEM; DGPV; DPV; NV; Nevada; SB 374; dGen

Citation Formats

Gagnon, Pieter, Sigrin, Ben, and Gleason, Mike. The Impacts of Changes to Nevada's Net Metering Policy on the Financial Performance and Adoption of Distributed Photovoltaics. United States: N. p., 2017. Web. doi:10.2172/1339521.
Gagnon, Pieter, Sigrin, Ben, & Gleason, Mike. The Impacts of Changes to Nevada's Net Metering Policy on the Financial Performance and Adoption of Distributed Photovoltaics. United States. doi:10.2172/1339521.
Gagnon, Pieter, Sigrin, Ben, and Gleason, Mike. Sun . "The Impacts of Changes to Nevada's Net Metering Policy on the Financial Performance and Adoption of Distributed Photovoltaics". United States. doi:10.2172/1339521. https://www.osti.gov/servlets/purl/1339521.
@article{osti_1339521,
title = {The Impacts of Changes to Nevada's Net Metering Policy on the Financial Performance and Adoption of Distributed Photovoltaics},
author = {Gagnon, Pieter and Sigrin, Ben and Gleason, Mike},
abstractNote = {As the adoption of distributed photovoltaics (DPV) has continued to rapidly increase, a national conversation has begun about the efficacy of full-retail net metering as a means of achieving the diverse objectives of electricity pricing. This conversation has prompted studies that have primarily focused on the total costs and benefits of DPV. To compliment those studies, we here characterize the potential impacts of tariff design on the customer-economics and adoption of DPV, where recent changes in Nevada are taken as a case study. We show that an increase in fixed charges more strongly impacts the payback period of small systems, and a decrease in credit for exported electricity more strongly impacts the payback period of large systems. We project that these combined changes will reduce DPV adoption in Nevada; total capacity in 2030 was projected to reach up to 363 MW, with 226 MW having already been installed at the end of the second quarter of 2016. In contrast, if full retail net metering had continued, DPV capacity was projected to reach up to 1,280 MW at the end of 2030, which would account for an estimated 6.5% of the total sales of electricity by NV Energy at that time. We project that the DPV systems will decrease the gross revenue from bill collection by $48 million per year under the new tariffs, whereas the decrease in gross revenue could have reached $255 million per year if full retail net metering had been continued. Although these results are given in the context of Nevada, the trends shown are intended to help information similar upcoming decisions in other states.},
doi = {10.2172/1339521},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Jan 01 00:00:00 EST 2017},
month = {Sun Jan 01 00:00:00 EST 2017}
}

Technical Report:

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