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Cost-Effectiveness of Distributed Generation Technologies As shown in the chart, microturbines at a nominal size of 200 kW are very close to passing the PCT without an incentive. Under the current SGIP, microturbines do not receive a rebate and the estimated PCT is 0.98 and the MIRR is 9.2%. Increasing incentives to $0.38/Watt increased the MIRR to 10% and the PCT to 1.0. To reach an MIRR of 11% required a rebate of $0.92/Watt, for a 12% MIRR a rebate of $1.54 was required, $2.24/Watt for 13% MIRR and $3.16/Watt for 14% MIRR. Incentive levels topped out at $3.15/Watt and an associated 14% MIRR. Figure 5-27 shows the effect of changing the incentive on the MIRR for microturbines nominally sized at 200 kW fueled by directed biogas in PG&E territory under the Base Scenario. For this technology and fuel combination, it was not possible to achieve a 10% MIRR level without having the incentive exceed the cost of the measure. Given the relatively low level of energy production from a microturbine, the system does not produce enough energy to overcome the high cost of fueling with directed biogas. Figure 5-27: PCT Results for Microturbines at 200 kW, Directed Biogas (PG&E) Itron, Inc. 5-50 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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