Document Type

Article

Abstract

Increasing numbers of customers are installing solar photovoltaic systems on their homes and businesses. As module and system costs decline, customer demand grows, and more businesses organize around the solar opportunity, it is time to revisit the tariff structure under which these systems integrate with and operate on the electric grid. This article details a novel approach to a distributed solar tariff, called the “Value of Solar” tariff (“VOST”), that addresses important utility and customer issues, and offers some significant improvements over traditional net metering approaches. There is a saying in the venture capital world to the effect that, “It is not enough to design a better mousetrap. You really, really must want to kill mice.” Sound execution inspired by a clear vision of an end result is essential for business success. So, too, in the quest to increase markets for distributed solar generation—you really, really must want to get more solar installed.

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