Solar+Storage/Impact of Utility Rate Design
From Open Energy Information
Impact of Rate Design on Solar+Storage Economics
- How does the design of the utility tariff, such as demand charges and time-of-use elements, impact solar and/or storage economics?
- Do expected savings from solar and/or storage increase when utility rates have higher demand charges?
- Solar and/or storage systems are more likely to be economical under utility tariffs that have:
- demand charges (of any type), or
- time-of-use elements (including time-of-use energy rates or time-of-use demand charges).
- Solar and/or storage systems are more likely to be economical under utility tariffs that
- As the maximum demand charge of the utility tariff increases, one may expect expected savings to also increase.
- Looking across all locations, building types and technology combinations, once technology prices drop to Cost Point D, expected savings do increase with increasing demand charges.
- When considering only projects that include battery storage, expected savings do not necessarily trend upward with increasing demand charges. The trend is highly dependent on location and building type.