Solar+Storage/Impact of Policies & Incentives

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Impact of Policies & Incentives on Solar+Storage Economics

Key Questions

  • How does the step-down of the Investment Tax Credit (ITC) from 30% to 10% impact solar+storage economics?
  • How does the availability of net energy metering impact the economics of commercial-scale solar+storage?
  • How much will it impact solar+storage economics if electricity price increases are slower than anticipated?


  • Reductions in technology costs, given the assumed cost trajectories, make up for the ITC step-down to 10% in 2021.
  • Under higher technology costs, the availability of Net Energy Metering at a retail rate significantly impacts savings provided by solar-only systems in some locations, most notably Anaheim and San Francisco.
  • Storage systems are economical in cases with and without net energy metering, however savings are higher in the No NEM and NEM at the wholesale rate cases.
  • There is little difference in solar+storage economics between the “no NEM” and “wholesale NEM” cases. This trend was the same at all technology cost points modeled.
  • Differences in electricity price increases do not significantly impact solar+storage economics. Higher price increases show slightly higher levels of savings. However a limited range of escalation rates were explored. More extreme electricity price growth would likely have more significant impacts on system economics.

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