System integration issues of residential solar photovoltaic systems

Abstract
The objective of this study is to evaluate the economic effects of residential solar PV systems on the utility's revenue, capacity, and energy requirements from the electric utility's perspective and to estimate the price that it might pay for surplus energy compared to what it would charge for deficits. The power and energy generated by the solar PV systems reduce the capital and operating costs that would otherwise be incurred by the utility. These avoided costs suggest what the utility might pay for surplus solar PV energy. The avoided costs are evaluated under three integration hypotheses, namely: (1) the utility has no system storage, (2) the utility has system storage, and (3) the solar PV systems are supported by dedicated storage devices, the purpose of which is to minimize sales to and purchases from the utility. Findings are reported in detail. (WHK)

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