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Customer bill impacts of energy efficiency and net-metered photovoltaic system investments

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  • Satchwell, Andrew
  • Cappers, Peter
  • Goldman, Charles

Abstract

Utility regulators and policymakers are concerned about potential increases in retail rates driven by energy efficiency (EE) programs and distributed solar photovoltaic (PV) systems, which may adversely affect utility customers that do not invest in these technologies (i.e., non-participants) and more so than those that do (i.e., participants). We assess customer bill impacts of illustrative EE programs and net-metered PV systems for a prototypical northeast utility. We find that the timing of customer EE or PV investments matters and that modest energy savings may fail to yield financial benefits sufficient to offset concomitant increases in retail rates.

Suggested Citation

  • Satchwell, Andrew & Cappers, Peter & Goldman, Charles, 2018. "Customer bill impacts of energy efficiency and net-metered photovoltaic system investments," Utilities Policy, Elsevier, vol. 50(C), pages 144-152.
    • Handle: RePEc:eee:juipol:v:50:y:2018:i:c:p:144-152
    DOI: 10.1016/j.jup.2017.12.003
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    References listed on IDEAS

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    1. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan, 2011. "The impact of rate design and net metering on the bill savings from distributed PV for residential customers in California," Energy Policy, Elsevier, vol. 39(9), pages 5243-5253, September.
    2. Satchwell, Andrew & Mills, Andrew & Barbose, Galen, 2015. "Quantifying the financial impacts of net-metered PV on utilities and ratepayers," Energy Policy, Elsevier, vol. 80(C), pages 133-144.
    3. Satchwell, Andrew & Cappers, Peter & Goldman, Charles, 2011. "Carrots and sticks: A comprehensive business model for the successful achievement of energy efficiency resource standards," Utilities Policy, Elsevier, vol. 19(4), pages 218-225.
    4. Darghouth, Naïm R. & Wiser, Ryan H. & Barbose, Galen & Mills, Andrew D., 2016. "Net metering and market feedback loops: Exploring the impact of retail rate design on distributed PV deployment," Applied Energy, Elsevier, vol. 162(C), pages 713-722.
    5. Cappers, Peter & Goldman, Charles, 2010. "Financial impact of energy efficiency under a federal combined efficiency and renewable electricity standard: Case study of a Kansas "super-utility"," Energy Policy, Elsevier, vol. 38(8), pages 3998-4010, August.
    6. Satchwell, Andrew & Mills, Andrew & Barbose, Galen, 2015. "Regulatory and ratemaking approaches to mitigate financial impacts of net-metered PV on utilities and ratepayers," Energy Policy, Elsevier, vol. 85(C), pages 115-125.
    7. Cai, Desmond W.H. & Adlakha, Sachin & Low, Steven H. & De Martini, Paul & Mani Chandy, K., 2013. "Impact of residential PV adoption on Retail Electricity Rates," Energy Policy, Elsevier, vol. 62(C), pages 830-843.
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    Cited by:

    1. Peter Cappers & Andrew Satchwell & Will Gorman & Javier Reneses, 2019. "Financial Impacts of Net-Metered Distributed PV on a Prototypical Western Utility’s Shareholders and Ratepayers," Energies, MDPI, vol. 12(24), pages 1-19, December.
    2. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(C).

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