Commercializing Photovoltaics: the Importance of Capturing Distributed Benefits

The results of an empirical, case-study analysis demonstrate that PV will become cost-effective as a distributed resource long before it becomes a costeffective, central station, energy supply option. This conclusion is based on the assumption that the nontraditional benefits that distributed PV systems offer to the electrical system and to utility customers, including transmission and distribution equipment deferrals and peak-shaving, are incorporated into cost-effectiveness analyses. The paper concludes that it is critical to capture the non-traditional or “distributed” benefits associated with investments in dispersed PV systems in order to commercialize the technology in grid-connected applications.