Solutions: Net-Value Assessment and Pricing
This section provides detail on CSVP’s streamlined analytic process, aimed at understanding baseline economics and at “Closing the GAP” between the baseline bottom line and where a competitive program needs to be. We provide process notes and generic models that show how different utilities can calculate just a few values to bring their program net levelized cost of energy (net LCOE) in line with a competitive target. CSVP proposes that many utilities could include a customer-retention value for utility-provided community solar (whether the resource is utility-owned or acquired via PPA). Here we explain the methodology and challenges in different policy contexts. CSVP also offers a summary of the Sacramento Municipal Utility District (SMUD) current Solar Shares plans—a portfolio of shared-solar choices aimed initially at the commercial market. Among these are two choices that speak directly to the CSVP mission: (1) community solar for new residential clean-energy developments and (2) a program for commercial customers that includes an electric vehicle (EV) demonstration and offers incentives for expanding the projects, to anchor a broader, more inclusive offer.