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Value Considerations: On the wholesale market, the value of solar power to a utility will depend on the marginal cost of the power that is being displaced. The output of a solar-only power plant will closely follow the solar input, which may or may not correspond closely with the utility’s load profile. Energy storage can be employed to capture the solar energy when it is available and then provide electricity to the utility when it is needed (Figure 2-2). The utility load profile shown in the figure is typical for utilities in the southwest United States. Alternatively, hybridization—in which fossil energy is used to generate power when the sun is not available—is another way of enhancing the value of a plant by providing the assurance of plant availability. Figure 2-2. Example of the benefit of a solar plant that can generate 1250 MW of solar energy with storage during Nevada Power’s summer peak month of August. (Source: Platts Research and Consulting) 2.3.2 Distributed Energy Resources Solar is an excellent distributed energy resource because it is widely available and can be converted locally to meet local electrical and thermal-energy needs. “Distributed generation” refers to electric power plants that operate at distribution voltages and below and are typically less than 20 MW in size. The following sections discuss the uses for solar-energy technologies in the distributed-energy resource market. These applications can be located off-grid, as well as integrated to the grid. 2.3.2.1 Building-Integrated Systems Electrical and thermal solar energy systems can be installed on or as part of building surfaces. These systems supply energy at the point of need without requiring additional land area. Market Characteristics: Most buildings in the United States are connected to the utility grid (off- grid buildings are addressed in a following section) and obtain electricity at retail rates. The retail rate structure is complex, with different rates for residential, commercial, and industrial customers of various sizes. Rates further vary between the more than 3,000 utilities within the country. Use of on-site generation and cogeneration is also increasing. Solar Energy Technologies Program Multi-Year Technical Plan 17PDF Image | Solar Energy Technologies Program
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