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Regulatory constraints on solar energy and thermal-storage installations

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:5194353
The market penetration of new technologies such as centralized solar or thermal storage systems will be influenced by the pricing policies of public service commissions. The growth of energy demand in North Carolina and recent supply difficulties there are used as an economic background for discussing the issue of whether cost of service should be applied to backup solar installations. Evidence indicates that the fixed charges on power facilities are not reduced when solar equipment is introduced because peak demand remains about the same. On the other hand, time-of-day pricing policies could encourage customers with solar equipment to lower their peak demand by installing more thermal-storage capacity. If the electricity supply savings are computed on the basis of storage costs, a solar installation can be shown to be cost-effective. But if off-peak power prices are low, as is true in North Carolina, capital-intensive solar installations are not presently economic. A more promising case is made for retrofitting or equipping new buildings with thermal-storage systems. More electric usage data is needed to determine the extent and desirability of subsidizing solar-heating customers at either the local utility or Federal level.
OSTI ID:
5194353
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 101:2; ISSN PUFNA
Country of Publication:
United States
Language:
English