A uniform economic valuation methodology for solar photovoltaic applications competing in a utility environment

Abstract

The question of how the economic benefits of weather-dependent electric generation technologies should be measured is addressed, with specific reference to dispersed, user-owned photovoltaic systems. The approach to photovoltaic R&D investment that has historically been practiced by the Federal Government is described in order to demonstrate the need for an economic value measure. Two methods presently in common use, busbar energy costs and total systems costs, are presented and their strengths and weaknesses highlighted. A methodology is then presented which measures the "worth" of a system to a user and the implications of this analysis for R&D investment are discussed. Finally, a simple simulation model of a photovoltaic residence is designed which demonstrates the use of the suggested methodology.