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Distributed Energy Resources in Nevada - Quantifying the net benefits of distributed energy resources

Valuation, Analysis, BCA   
Rooftop solar photovoltaics (PV) and distributed energy resources can deliver net benefits to Nevadans today and, if thoughtfully utilized, play a significant role in Nevada’s energy future. However, these benefits are not being fully realized in practice today. Narrow accounting of distributed resources’ contribution to the grid, financial disincentives embedded in utility regulatory models, and outdated grid planning procedures are preventing full utilization of these assets. But these obstacles can be readily overcome. Doing so will deliver benefits to all Nevadans, as well as cement Nevada’s position as a leader in the transition to a clean, resilient, and affordable electric grid.

Key Takeaways: - This analysis performs a more complete accounting of the costs and benefits of rooftop solar deployments under NEM utilizing the cost and benefit categories identified by the Public Utilities Commission of Nevada and methodologies embedded in the Nevada Net Energy Metering Public Tool.

- Utilizing the PUCN cost/benefit categories and the Nevada NEM Public Tool, rooftop solar deployments under NEM offer net benefits to all Nevadan utility customers of between 1.6 and 3.4 cents per kilowatt-hour for deployments during 2017-2019.

- Utilizing the PUCN cost/benefit categories and the Nevada NEM Public Tool, Nevada’s roughly 23,000 existing NEM rooftop solar customers already provide net benefits to all Nevadans of $7-14 million per year.

- Utility financial disincentives should be mitigated and utility planning processes should be modernized in order to remove barriers to capturing the value that distributed energy resources provide to the grid and customers.