Evaluating the economics of photovoltaics in a demand-side management role

This paper examines current efforts to assess the economic viability of photovoltaics (PV) from a demand-side management (DSM) perspective, The benefits associated with dispatchable peak shaving PV DSM systems are discussed along with recent modelling efforts, Preliminary analysis, conducted at the Center for Energy and Environmental Policy (CEEP) together with Delmarva Power and Light, indicates that PV is closer to cost effectiveness, when assessed as a DSM option, than previously thought, PV DSM systems under investigation by CEEP include rooftop, non-dispatchable PV DSM and the integration of PV arrays and storage to provide dispatchable peak shaving capabilities, Analysis to date, on five case study utilities, shows that PV DSM systems can offer substantial value to utilities and their customers, Several policy options for promoting PV DSM are described along with a unique utility-customer partnership for the purpose of purchasing PV DSM systems.