Why Bother?
Why Bother? Capturing the Value of Net Metering in Competitive Choice Markets Justin Barnes North Carolina Solar Center National Solar Conference 2011 Raleigh, NC
Why Bother? Net Metering
Goal: Reduced customer electricity bills
Capturing the Value of Net Metering in Competitive Implications for Wholesale Choice Markets Competitive Market Operations
Retail Choice
Suppliers with DG Customers
Justin Barnes North Carolina Solar Center National Solarcustomer Conference 2011 bills Goal: Reduced electricity Raleigh, NC
Net Metering Questions • Does the retail supplier have an obligation? – Can it be enforced?
• What is the metering arrangement? • What are utility practices?
Supplier says: Why would I want DG/net metering customers??
Example: Utility-side Netting (kWh credit)
Customer
UFE?
$$
Supplier Hourly Energy Obligation
Customer
Profile
Profile Customer
UFE?
Customer
Customer
Customer
Customer
Customer
Potential Value #1: Solar Load Profile
Potential Value #2: Customer Exports
PV Customer Value
Cost to supply nonPV customer
Cost to supply comparable PV customer
Depends on use of profile and/or ability to capitalize on customer generation
Wholesale value of customer exports
Cost of PV customer comp.
Might be a wash or wholesale value could actually be zero
Examples Solar Profile: ERCOT only (to our knowledge), interval meters obviate need Export Value: ERCOT (PV: 11 AM – 3 PM), Bangor Hydro & CMP (even hourly), Pepco (hourly for interval metered, UFE for non-interval metered), NYSEG & RGE (all UFE), National Grid Rhode Island (all UFE, based on 2008 information)
Other Considerations Disadvantages
Marketing and Customer Relations?
The Sales Disincentive?
Business Diversification?
Cost of Service?
Advantages
Why Does it Matter?
Why Does it Matter?
Why Does it Matter?
Closing Thoughts • State net metering laws/regulations must pay additional attention to the issues brought on by retail choice • Wholesale market modifications are necessary to better address net metered systems • Value exists under the right circumstances, but it will take time for the market to adapt
Questions?? Justin Barnes
Laurel Varnado
North Carolina Solar Center [email protected]
North Carolina Solar Center [email protected]
Why Bother? Net Metering
Goal: Reduced customer electricity bills
Capturing the Value of Net Metering in Competitive Implications for Wholesale Choice Markets Competitive Market Operations
Retail Choice
Suppliers with DG Customers
Justin Barnes North Carolina Solar Center National Solarcustomer Conference 2011 bills Goal: Reduced electricity Raleigh, NC
Net Metering Questions • Does the retail supplier have an obligation? – Can it be enforced?
• What is the metering arrangement? • What are utility practices?
Supplier says: Why would I want DG/net metering customers??
Example: Utility-side Netting (kWh credit)
Customer
UFE?
$$
Supplier Hourly Energy Obligation
Customer
Profile
Profile Customer
UFE?
Customer
Customer
Customer
Customer
Customer
Potential Value #1: Solar Load Profile
Potential Value #2: Customer Exports
PV Customer Value
Cost to supply nonPV customer
Cost to supply comparable PV customer
Depends on use of profile and/or ability to capitalize on customer generation
Wholesale value of customer exports
Cost of PV customer comp.
Might be a wash or wholesale value could actually be zero
Examples Solar Profile: ERCOT only (to our knowledge), interval meters obviate need Export Value: ERCOT (PV: 11 AM – 3 PM), Bangor Hydro & CMP (even hourly), Pepco (hourly for interval metered, UFE for non-interval metered), NYSEG & RGE (all UFE), National Grid Rhode Island (all UFE, based on 2008 information)
Other Considerations Disadvantages
Marketing and Customer Relations?
The Sales Disincentive?
Business Diversification?
Cost of Service?
Advantages
Why Does it Matter?
Why Does it Matter?
Why Does it Matter?
Closing Thoughts • State net metering laws/regulations must pay additional attention to the issues brought on by retail choice • Wholesale market modifications are necessary to better address net metered systems • Value exists under the right circumstances, but it will take time for the market to adapt
Questions?? Justin Barnes
Laurel Varnado
North Carolina Solar Center [email protected]
North Carolina Solar Center [email protected]
