Solar Policy, Economics, and Sustainability Flashcards

How does a California NEM 3.0 (Net Billing Tariff) customer's export compensation compare to NEM 2.0?

Answer: Exports are credited at lower avoided-cost-based rates instead of near-retail rates

The Net Billing Tariff pays exports based on the Avoided Cost Calculator, which is well below retail rates on average.

Under the NEM 3.0 Net Billing Tariff, which addition most improves the economics of a residential system?

Answer: Battery storage to self-consume solar and shift exports to high-value hours

Low export values make self-consumption and evening dispatch from storage more valuable.

A commercial customer has high monthly demand charges driven by a short 4 PM peak. Why might PV alone fail to reduce those charges reliably?

Answer: Clouds or late-afternoon sun angles can leave the peak interval with little PV output

Demand charges are set by the highest interval, so one cloudy interval at peak can wipe out the savings without storage.

A PV system costs $24,000 after incentives and saves $3,000 per year. Ignoring degradation and rate escalation, what is the simple payback?

Answer: 8 years

$24,000 divided by $3,000 per year is 8 years.

Which effect makes LCOE higher when everything else is held constant?

Answer: A higher discount rate

A higher discount rate raises the cost of capital and shrinks the present value of future energy, so LCOE rises.

What is the main purpose of the federal antidumping and countervailing duty (AD/CVD) orders on solar cells and modules?

Answer: To offset unfairly priced or subsidized imports

AD/CVD duties counter imports sold below fair value or supported by foreign government subsidies.

In community solar, how do subscribers usually receive the benefit of their share of the shared array?

Answer: Bill credits on their utility bill in proportion to their share

Virtual or community net metering credits each subscriber's bill based on their allocated output.