A study recently released by the Mid-Atlantic Solar Energy Industries Association (MSEIA) and the Pennsylvania Solar Energy Industries Association (PASEIA) conducted by Clean Power Research concludes that solar power delivers far greater value than it costs.
Key points in the full text of the report include:
- Power is priced every hour in an auction
- The marginal bid (highest price) sets the rate for the entire hour
- Solar power effectively represents a $0 bid or a reduction in demand
- This leads to a lower price for all power sold during that hour
The study concludes that the influence of solar power in the electricity market auctions have lowered hourly auction rates enough to justify paying far more than the current electricity price plus Solar Renewable Energy Certificate (SREC) incentives (premium paid to incentivize solar) while still lowering the total ratepayer cost.
This is the first time a comprehensive study of the impact of solar on marginal electricity prices has been done. The conclusions justify an increase in the Renewable Portfolio Standards (RPS) and the Solar Alternative Compliance Payment (SACP) which drive demand and price respectively for the SREC incentive in these markets, which in turn improves the economics of going solar.
Hopefully this bodes well for even more solar in New Jersey, Pennsylvania and other states that may follow!