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Complementary policies addressing utility rates, interconnection standards, net
metering and incentives are required for a successful, cost-effective program.
Each is like the leg of a stool, and without all four, the program will not stand. |
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Sufficient scale and duration is required for the full value of a solar PV program
to be realized. A commitment to ten years of declining incentive funding, regulatory
certainty, and total MW goals large enough to contribute a measurable percentage of
peak energy demand are all necessary to develop a successful market. |
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It must be easy and inexpensive to integrate PV with the existing grid.
Interconnection and net-metering policies should be designed to facilitate
solar deployment. |
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Incentives should encourage high performance of PV systems.
This may include transition to performance-based incentives (PBI),
REC-based programs, and/or performance based standards where feasible. |
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PV incentive programs should be simple, transparent and easy to understand and
administer. All stakeholders should have access to a program's data and status
on a regular basis. The program must have sufficient oversight and standards to
protect ratepayer and consumer investments without overwhelming customers and
installers with excessive paperwork and bureaucracy. |
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A broad range of PV systems from homes to commercial, industrial and
government facilities should be supported. This includes
small residential retrofits, new construction, commercial roof top,
ground-mount systems, and BIPV. Incentives, net metering, easy
interconnection, and solar-friendly utility rates should be available
across the full range of system sizes and customers classes. |
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A competitive, open and transparent market is required to develop the
solar market for the good of all consumers. There should be a level
playing field for all companies to promote price competition.
Additionally, long-term, low-cost financing, which is available for
conventional electricity projects, should be available for solar generation. |
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Strong commitment to analytical rigor and technical analysis is critical
to demonstrate the effectiveness of a solar program. Analysis should
include specific examination of the value of distributed generation to
the stability of the grid and its role in mitigating peak energy needs as
well as its environmental benefits. |
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Negotiation and coordination with organizations that have a stake in the
deployment of PV systems is imperative. This includes solar advocacy
groups, environmentalists, builders, utilities, PV manufacturers and
installers, residential and commercial customers, and all other
interested organizations. |
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Policies should build upon successes in key markets and replicate those
models as opportunities arise. Newly enacted programs should take advantage
of the experience in other jurisdictions with program design, funding,
reporting and other key parameters. |
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