14 Jul '17, 3pm

Distributed Solar is Less Expensive Than Delivered Coal Power

Distributed Solar is Less Expensive Than Delivered Coal Power

Co-ops and munis are typically served by larger utilities known as generation and transmission providers (G&Ts), so the value of solar depends on the G&T’s rate structure. In theory, the avoided cost is defined by the wholesale market price plus a transmission grid fee, and most rate structures mimic such a structure. The alternative cost is thus dependent on the regional wholesale market, which, in turn, is often contingent on the dominant source of power. For co-ops in Colorado served by Tri-State G&T, the price-setting source of power is coal based, so the wholesale price can be proxied by the cash cost of coal power generation.

Full article: https://www.rmi.org/news/distributed-solar-12-percent-dis...

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