The microeconomics of residential photovoltaics: Tariffs, network operation and maintenance, and ancillary services in distribution-level electricity markets
- Los Alamos National Lab. (LANL), Los Alamos, NM (United States)
Here, we develop a microeconomic model of a distribution-level electricity market that takes explicit account of residential photovoltaics (PV) adoption. The model allows us to study the consequences of most tariffs on PV adoption and the consequences of increased residential PV adoption under the assumption of economic sustainability for electric utilities. We also validated the model using U.S. data and extend it to consider different pricing schemes for operation and maintenance costs of the distribution network and for ancillary services. Results show that net metering promotes more environmental benefits and social welfare than other tariffs. But, if costs to operate the distribution network increase, net metering will amplify the unequal distribution of surplus among households. In conclusion, maintaining the economic sustainability of electric utilities under net metering may become extremely difficult unless the uneven distribution of surplus is legitimated by environmental benefits.
- Research Organization:
- Los Alamos National Lab. (LANL), Los Alamos, NM (United States)
- Sponsoring Organization:
- USDOE
- Grant/Contract Number:
- AC52-06NA25396
- OSTI ID:
- 1340912
- Report Number(s):
- LA-UR-15-21016
- Journal Information:
- Solar Energy, Vol. 140, Issue C; ISSN 0038-092X
- Publisher:
- ElsevierCopyright Statement
- Country of Publication:
- United States
- Language:
- English
Web of Science
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