Valuation-Based Framework for Considering Distributed Generation Photovoltaic Tariff Design: Preprint

Owen Zinaman, Naïm Darghouth

Research output: Contribution to conferencePaper


While an export tariff is only one element of a larger regulatory framework for distributed generation, we choose to focus on tariff design because of the significant impact this program design component has on the various flows of value among power sector stakeholders. In that context, this paper is organized into a series of steps that can be taken during the design of a DGPV export tariffdesign. To that end this paper outlines a holistic, high-level approach to the complex undertaking of DGPV tariff design, the crux of which is an iterative cost-benefit analysis process. We propose a multi-step progression that aims to promote transparent, focused, and informed dialogue on CBA study methodologies and assumptions. When studies are completed, the long-run marginal avoided cost ofthe DGPV program should be compared against the costs imposed on utilities and non-participating customers, recognizing that these can be defined differently depending on program objectives. The results of this comparison can then be weighed against other program objectives to formulate tariff options. Potential changes to tariff structures can be iteratively fed back into established analyticaltools to inform further discussions.
Original languageAmerican English
Number of pages7
StatePublished - 2015
EventIndia Smart Grid Week - Bangalore, India
Duration: 2 Mar 20156 Mar 2015


ConferenceIndia Smart Grid Week
CityBangalore, India

NREL Publication Number

  • NREL/CP-6A50-63555


  • cost-benefit analysis
  • distributed generation
  • photovoltaic
  • ratemaking
  • solar valuation
  • tariff design
  • value of solar


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