Toby D. Couture, E3 Analytics
May 12, 2014
www.renewableenergyworld.com

The “Value of Solar” has emerged as a flash point in the debate over the future of solar PV in the U.S. This has culminated in the recent introduction in Minnesota of a Value of Solar (VoS) policy, which will pay a per-kWh price for solar PV output over a 25-year period. This price is based on a detailed calculation of the estimated value of solar to the State’s electricity system.

Some have heralded this as a path breaking development for the U.S. solar industry, providing system owners with a clear, transparent price for their solar output. Others fear it will undermine the successful third-party solar business model by allowing individuals and communities to develop projects on their own, effectively cutting out the middleman, similar to how residential PV projects have long been built and financed here in Germany.

Whatever may be said about the new Value of Solar policy, one thing that it is not is new.

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