Comments on: The era of virtual power plants is here 2022 Trends in Solar /2022/01/the-era-of-virtual-power-plants-is-here/ Covering the world of solar power technology, development and installation. Tue, 25 Apr 2023 15:51:31 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Solarman /2022/01/the-era-of-virtual-power-plants-is-here/#comment-123425 Tue, 04 Jan 2022 22:35:30 +0000 /?p=97114#comment-123425 “It’s a considerable change in utility thinking that is sweeping the country. From progressive utilities in the Northeast to grid operators desperate for quick reliability fixes in the West, VPPs are a win-win on both sides of the electric line. Utilities get access to thousands of mini power plants and clean energy without building their own substations, and customers get extra benefits from their emergency backup resources.”

The utilities see that folks “can” and will not tolerate the usury of the past moving forward. Utilities want the proposed NEM 3.0 in Californian to be the template of the nation. All residential and private solar PV installations overgeneration would be credited at the wholesale energy rate and charged at the residential “bundled” electricity rate when grid power is used. Allowing the coddled “regulated monopoly) electric utility to enjoy “avoided costs” of not having to purchase property, float bonds or loans and payout interest, purchase, install, maintain and insure a distributed solar PV system. O&M is bundled into the cost of each kWh of residential electricity used, O&M of a distributed solar PV and smart ESS system should also be compensated for long term O&M also. Adoption of solar PV and smart ESS isolates the residential end user from the utility and forces partnerships like creating a VPP from 100,000 distributed ESS units in a community.

Also like the article mentions, these solar PV State and Federal programs are a mishmash of requirements for one to qualify for the ITC. As mentioned, the ITC just might have the requirement of a battery backup system “has” to be charged off of solar PV alone to qualify for the ITC. No consideration by the Federal edict, that smart ESS systems can also use arbitrage to bring down electricity costs for consumers. Conflicting Federal, State, County, Local ordinances are a spaghetti mix of cancellation of the benefits of installing solar PV and smart ESS. Unbridled “soft costs” are creating roadblocks to solar PV and or energy storage technologies adoption in the residential sector.

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