Electric utilities and residential solar systems

Conference · Tue Apr 01 04:00:00 EST 1980

OSTI ID:5491411

Bright, R; Davitian, H

The long-run incremental cost (LRIC) of providing electricity for solar heating and hot water systems is estimated for three utilities using a utility capacity expansion model and compared to the cost of providing electricity to electric-only systems. All investment, fuel and operating costs are accounted for. Hot water systems and combined heating and hot water systems are analyzed separately. It is found that the LRIC for solar backup is no more than the LRIC of electricity used for purely electric heating and hot water devices and also no more than the incremental cost of normal load growth. For the three utilities studied, there appears to be little basis for rate distinctions between solar devices using electric backup and electric-only heating and hot water devices. Off-peak storage heating and hot water devices have a much lower LRIC than the standard systems; again, there appears to be no basis for distinguishing between solar and electric off-peak devices. Compared to average cost pricing, incremental cost pricing offers considerable benefits to customers using solar and electric heat and hot water, especially if a separate lower rate is adopted for off-peak storage devices; these benefits can amount to several hundred dollars per year. Substantial savings in the use of oil and gas fuels can be achieved if residences using these fuels convert to solar systems, savings not necessarily achievable by a shift, instead, to electric systems.

• Research Organization: Brookhaven National Lab., Upton, NY (USA)
• Sponsoring Organization: USDOE
• DOE Contract Number: EY-76-C-02-0016
• OSTI ID: 5491411
• Report Number(s): BNL-27711; CONF-800604-21
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
140901* -- Solar Thermal Utilization-- Space Heating & Cooling
140907 -- Solar Thermal Utilization-- Water Heating
APPLIANCES
BUILDINGS
CAPACITY
COST
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY CONSUMPTION
ENERGY STORAGE
EQUIPMENT
FUEL CONSUMPTION
GAS APPLIANCES
HEATERS
HEATING
HEATING SYSTEMS
INCREMENTAL-COST PRICING
INVESTMENT
OFF-PEAK ENERGY STORAGE
POWER
PRICES
PUBLIC UTILITIES
RATE STRUCTURE
RESIDENTIAL BUILDINGS
RESIDENTIAL SECTOR
SOLAR EQUIPMENT
SOLAR HEATING
SOLAR HEATING SYSTEMS
SOLAR SPACE HEATING
SOLAR WATER HEATERS
SOLAR WATER HEATING
SPACE HEATING
STORAGE
WATER HEATERS