We construct a model to optimize the economics of distributed generation photovoltaics (DGPV) for a parallel generation (behind-the-meter) application. Applying the model to the short-interval load and insolation data for two similar dairy operations in the U.S. Upper Midwest region, we find that highly site-specific differences in parameters lead to strikingly divergent results. Operating behind-the-meter strongly rewards real-time concurrence between on-site generation and on-site load. Compared to operating under a value of solar tariff (VOST) or net energy metering (NEM), we argue that parallel generation tariffs amplify the existing, irreducible uncertainties of project economics, and discourage DGPV investment.
Bibliographical notePublisher Copyright:
© 2015 Elsevier Ltd.
- Net energy metering
- Renewable energy
- Value of solar tariffs