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Value of Grid-Connected Photovoltaics in Michigan

Valuation, Analysis, BCA   
In recent years, Michigan has seen an increase in grid-connected photovoltaics (PV), with 1.9 MW installed in 2010, bringing the total grid-connected PV capacity to 2.6 MW.  As solar technologies become more prominent in Michigan’s electric generation portfolio, it is increasingly important to understand the value it provides to the state’s electric utilities and citizens. This white paper study estimates the value of PV generation in Michigan by comparing hourly solar generation with hourly electricity prices from specific years. This study also considers other value components that have been quantified in previous PV valuation studies and uses these to estimate similar value components for PV installed in Michigan.  Some major findings included: 1. Photovoltaic (PV) value is consistently higher than average electricity prices due to favorable correlation with peak prices.  2. Over 75% of PV value in Michigan is realized in energy and generation capacity benefits and environmental benefits.  3. On an annual basis, PV production in Michigan is valued at $0.138/kWh.