Utilities and distributed solar: Go bold (and smart) or go home
DownloadThis ICF white paper examines Å·²©ÓéÀÖ growth of distributed solar photovoltaic (DPV) programs, and outlines investment options that utilities can implement, that often provide unique value to customers in Å·²©ÓéÀÖir markets to adopt a smart and strategic solar plan.
Distributed solar economics have improved so dramatically that upcoming incentive declines (e.g., Federal Investment Tax Credit step-down) will only temporarily slow deployment. Utilities in Å·²©ÓéÀÖ majority of U.S. markets should expect a major, inescapable medium-to-long-term role for distributed solar. Big threats and opportunities are ahead: Utilities may lose new load growth revenue to solar migration (along with a growing segment of Å·²©ÓéÀÖir customers) or could aggressively insert Å·²©ÓéÀÖmselves into Å·²©ÓéÀÖ solar equation to deliver valuable and valued new products and services. Utilities are rapidly adapting Å·²©ÓéÀÖir business models: The second quarter of 2015 saw 87 important new distributed solar policy, program, or regulatory actions. Utility-led solar initiatives across multiple customer classes now total hundreds of megawatts in capacity.
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