That’s Not Fair: Tariff Structures for Electric Utilities with Rooftop Solar
نویسندگان
چکیده
Problem definition: Utility regulators are grappling to devise compensation schemes for customers who sell rooftop solar generation back the grid, balancing environmental interests and financial of utilities, system installers, retail customers. This is difficult: Regulatory changes made in Nevada 2015 protect Nevada’s utility induced SolarCity, market leader systems, suspend local operations. We show that choice tariff structure crucial achieving socially desirable objectives. Academic/practical relevance: It important understand how interacts with social has implications consumers, regulators, industry. Methodology: use a sequential game analyze regulator’s welfare maximization problem regulated utility; an unregulated, price-setting, profit-maximizing installer; endogenously determine whether adopt or not, based on tariffs, prices, their heterogeneous usage profiles potentials. Results: illustrate effectiveness structures not governed simply by number free parameters, but functions these parameters serve. In particular, effective must discriminate among customer tiers between without achieve outcomes. present two characteristics it can be implemented as simple buy-all, sell-all while retaining its favorable properties. our findings numerically using data from New Mexico, states this issue. Managerial implications: Many utilities United States operate missing at least one identified features. Regulators overhaul adequately safeguard all stakeholders.
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ژورنال
عنوان ژورنال: Manufacturing & Service Operations Management
سال: 2022
ISSN: ['1523-4614', '1526-5498']
DOI: https://doi.org/10.1287/msom.2020.0930