A Review of Value of Solar Studies In Theory and In Practice
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A Review of Value of Solar Studies In Theory and In Practice

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Abstract

Though most states in the United States required net metering as of 2024 (i.e., compensating solar output at the full electricity rate), many have taken recent action to address distributed generation compensation and valuation. One common action is for states to commission value of solar (VoS) studies that quantify the value and costs associated with distributed solar output to inform solar tariff and incentive design. This brief summarizes a collection of state- and utility-commissioned VoS studies and related literature, with a focus on who commissioned the study, which value and cost categories were discussed and/or quantified, and the methods used. It is intended to contextualize and summarize the value and cost categories that have been included in past VoS studies and research as well as the methodology used to quantify these values. This can provide context to states that may want to do the same in order to understand or quantify the net benefits of solar or integrate findings into new or updated solar incentives or tariffs. The value categories examined include: -Generation --Avoided energy --Avoided capacity --Avoided renewable portfolio standard --Fuel hedging --Market price response --Ancillary services -Transmission and Distribution --Avoided transmission capacity --Avoided line loss --Avoided distribution capacity --Resilience and reliability --Distribution operations and maintenance --Voltage and power quality -Utility Costs --Integration --Lost utility revenue --Program administration -Social --Other avoided environmental costs --Local economic benefit --Other

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