Publication - From Sun to Roof to Grid: The Economics and Policy of Distributed PV
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Title
From Sun to Roof to Grid: The Economics and Policy of Distributed PV
Publisher
Energy Sector Management Assistance Program (ESMAP)
Author
Energy Sector Management Assistance Program (ESMAP)
Published in
September 2024
Abstract
Distributed photovoltaics (DPV), the world’s fastest growing local energy technology, offers distinct benefits and challenges especially when connected to grids in low- and middle-income countries. This report, the final in a series of three, walks policy makers, regulatory authorities, utilities, and energy experts through a framework for designing and implementing policy packages that guide and regulate DPV installations and their connection to the grid.
Special attention is given to the potential economic benefits and challenges DPV pose for electric utilities. The first step is to diagnose and screen various use cases where DPV can provide a full or partial solution to challenges in a given country context. Key considerations for program design and implementation include the consideration of business models variously driven by customer, service providers, and utilities; aligning stakeholder incentives; and distributing benefits and costs fairly and efficiently. Adjusting retail tariffs is important to keep electricity bills affordable for all consumers while supporting financial viability of utilities and avoiding distortions. The framework is designed to ensure the orderly and equitable growth of DPV, especially when connected to grids in low- and middle-income countries.
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