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Economics of electric utility backup for solar heating and hot water

Conference · · Proc. Annu. Meet. - Am. Sect. Int. Sol. Energy Soc.; (United States)
OSTI ID:6379362
The long-run incremental cost (LRIC) of providing solar heating and hot water systems is estimated using a utility capacity expansion model. All investment, fuel and operating costs are accounted for. Hourly solar data are used to properly model variations in solar input. 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 average cost of residential electric service. For the three utilities studied, there appears to be little basis for rate distinctions between solar devices using electric backup and pure electric 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
DOE Contract Number:
AC02-76CH00016
OSTI ID:
6379362
Report Number(s):
CONF-800604-P3
Conference Information:
Journal Name: Proc. Annu. Meet. - Am. Sect. Int. Sol. Energy Soc.; (United States) Journal Volume: 3.2
Country of Publication:
United States
Language:
English