The effect of current and prospective policies on photovoltaic system economics: An application to the US Midwest

摘要: Abstract This study models fundamental features of current and prospective policies encouraging adoption residential photovoltaic (PV) systems. A key finding is that time-of-day (ToD) pricing can enhance or worsen the economics PV Moreover, increased responsiveness electricity demand to its price diminishes effectiveness ToD in absence net metering, but does not affect it otherwise. An application plausible conditions State Indiana, USA, shows are unlikely trigger by a risk-neutral forward-looking customer. However, systems be induced if Federal Tax Credit cover 48% capital cost (instead 30%), which could imply Government about $0.95/kW installed capacity depending on panel’s size. We demonstrate implementation under range on- off-peak combinations. But our analysis also cost-effectiveness enhanced at higher ratios on-peak prices.