Impact of fuel-dependent electricity retail charges on the value of net-metered PV applications in vertically integrated systems

B-Tier
Journal: Energy Policy
Year: 2015
Volume: 79
Issue: C
Pages: 150-160

Authors (3)

Nikolaidis, Alexandros I. (not in RePEc) Milidonis, Andreas (University of Cyprus) Charalambous, Charalambos A. (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Retail electricity charges inevitably influence the financial rationale of using net-metered photovoltaic (PV) applications since their structure as well as their level may vary significantly over the life-cycle of a customer-sited PV generation system. This subsequently introduces a further uncertainty for a ratepayer considering a net-metered PV investment. To thoroughly comprehend this uncertainty, the paper employs a top-down approach – in vertically integrated environments – to model the volatility of partially hedged electricity charges and its subsequent impact on the value of bill savings from net-metered PV systems. Besides the utility's pricing strategy and rate structures, particular emphasis is given in modeling the fossil fuel mix component that introduces a significant source of uncertainty on electricity charges and thus on the value of bill savings of net-metered, customer-sited, PV applications.

Technical Details

RePEc Handle
repec:eee:enepol:v:79:y:2015:i:c:p:150-160
Journal Field
Energy
Author Count
3
Added to Database
2026-01-26