Value of Solar. Program Design and Implementation Considerations

Here, we present an analysis that assesses the potential market type that might form in the United States under a VOS rate, given current national average solar costs and various incentive scenarios, for the most populous city in each state. Three hypothetical VOS tariffs were developed, based on assumptions of avoided fuel costs, avoided capacity, environmental benefits, and line losses, to represent a of range of possible VOS rates. The levelized cost of solar in 50 locations is calculated using NREL’s System Advisor Model (SAM) using input assumptions regarding system size, resource quality, avoided capacity (aka capacity factor) and a variety of incentives. Comparing the solar costs with the hypothetical VOS rates illustrates the various market types that may form under a VOS program, in different locations.