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Economics and Value Considerations: Customer-sited systems have economics and benefits that are similar to building-integrated systems discussed previously in this report. A primary additional consideration is the need for land to site the ground-mounted system. The economics of a utility-owned system will be similar to a central-generation system because most of the same considerations apply. However, systems connected to the distribution system will typically be much smaller. To meet customer needs for “green energy,” utilities may site these smaller-scale solar power plants wherever land is available—such as reuse of former brownfields, which are former industrial sites that may have residual pollution that discourages other uses. Utilities have also evaluated the use of solar to provide grid support. If a utility distribution system is overloaded, energy from central-generation sources cannot be delivered to the customers when needed. Where overloads are correlated with available solar energy (for example, air- conditioning loads), then a solar system located within the distribution-system can provide energy at the point of need. This energy has higher value because it offsets the capital cost of a distribution-system upgrade. The value of distribution support was extensively studied for the Kerman substation system within the service territory of Pacific Gas and Electric (PG&E). However, the value of distribution support is likely to be quite specific, as well as being time dependent, because distribution support requirements will likely change over the 20- to 30-year life of a solar system. 2.3.2.3 Off-Grid Solar-Electric Applications Solar-electric applications that are not connected to the utility grid are referred to as off-grid applications. Unlike grid-tied systems, where excess energy can be supplied to the utility grid, the energy from off-grid systems is used immediately or is stored. Building and other applications of solar-thermal systems have been discussed in the preceding section and are not discussed further. Market Characteristics: Off-grid solar-electric systems use available sunlight to meet local energy needs without requiring a road, wire, or pipe for supply of conventional energy sources. As a result, these systems not only offset the cost of energy from conventional sources, they also offset the cost of extending delivery of conventional energy sources to the point of use. This leads to high-value, diverse markets for solar electricity. The scale of off-grid applications can range from 1 watt or less (solar calculator) to hundred of kilowatts for a village or facility power system, with diverse applications in between. Benchmark Cost of Energy: Tables 2-4a and 2-4b provide a summary of application types and conventional alternatives. In addition, wind is a competing renewable technology for some remote applications. Solar Energy Technologies Program Multi-Year Technical Plan 21PDF Image | Solar Energy Technologies Program
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