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Value of Distributed Photovoltaics to Austin Energy and the City of Austin

Valuation, Analysis, BCA   
Austin Energy plans to offer residential customers a new solar net metering tariff based on the value of solar energy generated from distributed photovoltaic (PV) systems in the grid to the utility in place of traditional net metering. Austin Energy worked with Clean Power Research (CPR) to employ the algorithms from a utility value calculator to design the solar tariff. A rebate structure was also designed in order to ensure that customers still satisfy a key economic cost-effectiveness test and address first-cost barriers facing solar customers. These two revenue types – an ongoing credit for solar production, and a one-time rebate – begin a transition toward production-based incentives for residential customers based on actual value credits for solar generation and steadily declining up-front rebates.