Ten Reasons Why Small-Scale Non-Utility Solar Is Very Important

Stanford University engineering professor Mark Jacobson published a paper stating that user-side solar energy, such as household, commercial, and community solar, has benefits.

Solar energy projects are typically divided into two categories: large, utility-scale ground projects connected to the grid, and smaller distributed projects that are usually 20 MW or less. In California and many other states, small-scale, distributed solar projects – especially those located behind the meter have become scapegoats for high electricity prices, coming under attack by utilities and state legislatures.

In a paper, Stanford University professor of civil and environmental engineering Jacobson explains why the U.S. should support behind-the-meter solar installations nationwide.

Depending on how they connect to the grid, small-scale, distributed solar projects generally divided into two categories: behind the meter (BTM) or front of the meter (FOM) projects.

FOM systems connect to the grid’s lines, which deliver power directly to buildings, so they minimize the need for additional transmission lines. And since distribution lines are connected to transmission lines, FOM solar also deliver power to the transmission system.

As a result, these systems are subject to the same market and interconnection rules as utility-scale PV systems.

Behind-the systems are generally smaller than FOM systems and are installed on buildings, in parking lots, on hillsides, in yards and on open land that directly serves buildings These systems can send excess power back to the grid and draw power from the grid when they can’t meet 100% of the demand.

"Grid often oppose behind-the-meter distributed PV systems because their primary impact is to reduce the demand for grid electricity," said Jacobson. "Utilities claim that customers who still demand must pay higher prices to meet that demand, mainly because there are now fewer customers to share the fixed costs of the transmission and distribution system."

Jacobson outlines10 reasons why BTM solar is beneficial for everyone:

1.As BTM solar reduces power demand, the fixed costs of the transmission and distribution system are spread across fewer customers, driving up costs. so-called "cost-shift" argument ignores the realities of the energy transition. The electrification of buildings, transportation, and industry is increasing. Power demand will nearly, Jacobson says. "Even if BTM PV systems meet 25% of total power demand, the total power demand on the grid will still increase 50% over current demand levels," he said. "So the utilities' assumption that a large increase in BTM PV will reduce demand only holds for levels of electrification, not for high levels of electrification — which is what's needed to address climate, pollution, and energy security issues

2. Unlike utility-scale solar, BTM rooftop solar requires no land, thus eliminating land use and habitat destruction.

3.BTM solar reduces the need for transmission and distribution lines. Grid customers need transmission and distribution lines to meet 100% of their consumption, while utility-scale PV systems need transmission and distribution lines to achieve 100% of their power generation. However, BTM solar customers only need lines to meet additional demand beyond what their solar panels can supply.

4.When the power output of the BTM solar-battery combination system exceeds the building's power consumption, the excess power is fed back the grid, avoiding power outages, especially during hot summer days in regions that rely on AC power.

5. Sparks from transmission lines have triggered devastating wildfires, as those in California and Hawaii. The costs of those fires, as well as the costs of burying transmission lines underground to prevent fires, have been passed on customers in California. BTM solar reduces the risk of fires, according to Jacobson.

6. Increasing BTM PV systems reduces the extraction, processing and burning the highly polluting fuels used for grid power generation (fossil fuels and bioenergy), creating a cleaner environment.

7. BTM PV systems reduce greenhouse gas from the use of highly polluting fuels, thereby reducing climate damages for both distributed PV and grid customers.

8. BTM PV systems reduce fossil fuel usage, alleviating energy security concerns associated with fossil fuels.

9.Installing behind-the-meter PV creates more jobs than installing and operating utility-scale PV and other grid-scale generation, providing a benefit to states or the as a whole.

10. By absorbing 20% to 26% of the sunlight that would otherwise fall on a building and converting it electricity, rooftop PV reduces the amount of sunlight that is absorbed by the building, thereby cooling the building during the day and reducing the need for air conditioning. This benefit is most pronounced during the summer and daytime when electricity prices are highest.