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Title: The microeconomics of residential photovoltaics: Tariffs, network operation and maintenance, and ancillary services in distribution-level electricity markets

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.
Authors:
 [1] ;  [1] ;  [1]
  1. Los Alamos National Lab. (LANL), Los Alamos, NM (United States)
Publication Date:
Report Number(s):
LA-UR-15-21016
Journal ID: ISSN 0038-092X
Grant/Contract Number:
AC52-06NA25396
Type:
Accepted Manuscript
Journal Name:
Solar Energy
Additional Journal Information:
Journal Volume: 140; Journal Issue: C; Journal ID: ISSN 0038-092X
Publisher:
Elsevier
Research Org:
Los Alamos National Lab. (LANL), Los Alamos, NM (United States)
Sponsoring Org:
USDOE
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; Residential photovoltaics, Ancillary services, Electric network O&M, Feed-in tariffs, Net metering, Net purchase and sale
OSTI Identifier:
1340912