The Solar Energy Industries Association (SEIA) recently published a study on the costs and benefits of Solar Distributed Generation (Solar DG) in Arizona. They hired CrossBorder consulting to provide an analysis of the economics of S-DG and determined that a 50% return is indicated. Primary costs are lost revenues to APS from solar but the benefits are offset by saved energy costs, avoided generating capacity, network losses and avoided capital investment for renewables.
Crossborder looked at the costs of avoided generating capacity and the reduced grid investment and determined that these savings were significant and unappreciated in other studies. Crossborder also treated Solar as a long term benefit not as a single year benefit to determine significant Ratepayer Impact Measurement (RIM) effects.
For those interested, SEIA has made this report available.
For more information go to https://www.seia.org/sites/