Value of Solar (VOC)

Value of Solar (VOC) Definition:

A methodology that takes a uniform approach to establish the true value of the electricity produced by the distributed energy systems. Currently, the solar energy that is generated from photovoltaic systems varies in price depending on state and utility.

Breaking Down Value of Solar (VOC):

Due to the unique nature of solar energy production compared to conventional methods of energy production, there is currently not a market-wide accepted value of electricity produced from solar. The Value of Solar (VOC) is a methodology that takes the unique factors of solar energy production into consideration to determine an acceptable market value that benefits both residents and utilities.

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The Unique Nature of Photovoltaic Systems

Produce most electricity during peak demand
Produce power at the location of use
No continuous fuel purchasing requirement
Energy independence from foreign importing of fuel
0 emission energy production

These distinct characteristics of solar energy allow for a high degree of variability on how it is valued across markets. VOC studies begin to assess these traits to develop better planning for future energy investments that maximize benefits to society. There are a number of implementations from VOC studies that have a direct impact on the future of how solar energy is valued.

Implementations of Value of Solar

Improving utility resource planning
Informing solar incentive programs
Establishing an analytical foundation for net metering rates
Assist in creating a foundation for new rate designs

Sunrun

May 10, 2018

Value of Solar (VOC)