Deployment of customer-sited photovoltaics (PV) in the United States has expanded rapidly in recent years, driven by falling PV system prices, the advent of customer financing options, and various forms of policy support at the federal, state, and loca...
Solar Energy Technologies Office
May 13, 2015
minute read time
Deployment of customer-sited photovoltaics (PV) in the United States has expanded rapidly in recent years, driven by falling PV system prices, the advent of customer financing options, and various forms of policy support at the federal, state, and local levels. With the success of these efforts, heated debates have surfaced in a number of U.S. states about the impacts of customer-sited PV on utility shareholders and ratepayers. Researchers performed an analysis using a financial model to quantify the financial impacts of customer-sited PV on utility shareholders and ratepayers and to assess the magnitude of these impacts under alternative utility conditions. They found that customer-sited PV generally reduces utility collected revenues greater than reductions in costs, leading to a revenue erosion effect and lost future earnings opportunities. They also found that average retail rates increase as utility costs are spread over a relatively smaller sales base. These results were analyzed under various assumptions about utility operating and regulatory environments, and these impacts can vary greatly depending upon the specific circumstances of the utility. Based on this analysis, this report highlights potential implications for policymakers and identifies key issues warranting further analysis.
| Date | September 2014 |
| Topic | Codes, Standards & Utility Policies; Financing, Incentives and Market Analysis |
| Subprogram | Soft Costs |
| Author | Lawrence Berkeley National Laboratory |