This paper presents the results of a study conducted by Itron for the California Public Utilities Commission (CPUC) to examine the relationships between solar photovoltaic (PV) performance, costs, and PV incentive structures. The intent is twofold. The first intent is to create a baseline of PV performance and costs using actual performance data and reported costs from a large number of PV systems installed and operating in California. The second intent is to examine how PV performance and projected PV cost reductions can influence PV incentive payments. This study should help provide policy makers responsible for developing PV incentive programs with information that will result in incentive structures that fairly and transparently reward improved PV cost and performance while simultaneously providing a reasonable pathway to move PV towards an incentive-free market environment. PV performance monitoring data for over one hundred operating commercial, industrial, and institutional solar PV systems are combined with projected electricity retail rates and future PV costs within a breakeven levelized cost model to produce associated PV incentive levels. Preliminary results for 39 prototype PV market scenarios provide insights into how PV incentive levels can be set to take advantage of utility-specific electricity retail rates, PV configuration and location, and projected PV cost reductions while facilitating the development of PV systems that can compete without incentives. Potential implications of these performance and cost-effectiveness results are discussed with respect to PV incentive programs and PV markets.
In the last 20 years, emerging technologies such as fuel cells and microturbines have contributed to growth in the market for combined heat and power (CHP) in small-scale (5–5,000 kW) applications. Numerous studies utilizing performance assumptions have explored the theoretical potential for distributed CHP to save energy and reduce greenhouse gas (GHG) emissions, however actual performance may differ from expectations. Incentive programs in several states are beginning to yield information about actual (as opposed to potential) performance of small-scale CHP. This paper leverages over ten years of metered data from more than 500 different projects rebated by one such program: California’s Self Generation Incentive Program (SGIP). The population of projects includes established technologies (internal combustion engines, gas turbines) as well as emerging technologies. Performance measures examined include efficiencies, utilization, and GHG emissions impacts. A variety of Federal and State policies seek to increase the amount of small-scale distributed CHP in the coming years. It is imperative that knowledge about actual performance gleaned from metered data collected during the past decade be shared widely so that CHP’s potential to reduce energy consumption and GHG emissions is actually realized in the future.
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