Photovoltaics and electric utilities: An evaluation of utility attitudes and expectations

Abstract The U.S. Department of Energy has argued that the long-term market potential for photovoltaics (PVs) lies in central-station utility applications. Based on results of a nationwide survey of U.S. electric utilities, this study evaluates utility experience and information about PVs, utility perceptions of the viability of both central-station and dispersed applications, and utility expectations about the future prospects for PVs in the power systems market. While a number of utilities are actively involved with PV demonstration projects and remote applications, the attitudes and investment plans of most utilities are not supportive of central-station PV applications. Moreover, while some utilities anticipate growth in dispersed applications in their markets, most utilities are unprepared to deal with the challenges or business opportunities created by the introduction of dispersed systems. In general, limited knowledge and uncertainty characterize the general state of utility thinking about PVs as a power source.