Paper details the key design elements of a VOS tariff.
A “value of solar tariff” operates like a net metering tariff in providing customers with a monthly bill credit for the act of generating electricity from a private solar PV system. Unlike traditional net metering, however, the value of the solar generation credit is calculated based on the levelized present value of the sum of the life-cycle costs and benefits of energy produced by the solar PV system, instead of a credit based on the customer’s otherwise applicable tariffed rate for consumption (i.e. “retail rate”). The value of solar tariff is therefore a two-part tariff that charges the customer for gross consumption based on the retail rate and credits the customer for all solar generation at the calculated value of solar rate.