Ten reasons why small-scale, non-utility solar is important

From pv magazine USA

Solar projects can generally be placed in two buckets: they are either large utility-scale ground-mounted projects connected to the grid, or they are smaller, distributed projects, typically 20 MW in capacity or less. 

In California, and many other U.S. states, smaller, distributed projects, particularly ones located behind the meter, are under attack from utilities and state legislatures, often being scapegoated for high electricity rates. A paper by Mark Jacobson, professor of civil and environmental engineering at Stanford University, explains why we should be supporting behind-the-meter solar installations nationwide. 

Distributed, small-scale solar projects are often classified as either behind-the-meter (BTM), or front-of-the-meter (FOM), depending on how they are connected to the grid.  

FOM systems are connected to grid distribution lines, they serve buildings directly, minimizing the need for building additional transmission lines. Distribution lines are connected to transmission lines, so FOM solar can also feed its electricity to the transmission system. They are, therefore, subject to the same market and grid connection rules as utility PV systems. 

Behind-the-meter systems are typically smaller than FOM systems, and are often installed on buildings, over parking lots, hillsides, yards, and vacant lots that service buildings directly. Any excess electricity production from these systems can be sent back to the grid, and if the system does not meet 100% of demand, it can draw power from the grid. 

“Grid operators generally oppose BTM distributed PV because its first impact is to reduce demand for grid electricity,” said Jacobson. “Utilities claim that the remaining customers must pay a higher cost for the remaining demand, mostly because the fixed cost of the transmission and distribution system is now spread over fewer customers.” 

Jacobson offered ten reasons why BTM solar helps everyone: 

1. The claim that BTM solar reduces electricity demand and therefore increases costs by spreading the fixed cost of transmission and distribution over fewer customers, known as the “cost shift,” ignores the reality of the energy transition. Buildings, transportation, and industry are all being electrified. Jacobson said electricity needs will nearly double.  

“Even if 25 percent of the total electricity demand is met with BTM PV, overall grid electricity needs will still increase by 50 percent compared with today. Thus, the assumption by utilities that a large growth in BTM PV reduces demand holds true only for low levels of electrification, not for large-scale electrification, which is needed to address climate, pollution, and energy security problems,” said Jacobson. 

2. BTM rooftop solar requires no new land, whereas utility-scale does. Therefore, BTM solar reduces land requirements and habitat damage. 

3. BTM solar reduces the need for transmission and distribution lines. Grid customers need transmission and distribution lines for 100 percent of their electricity consumption, and utility PV requires transmission and distribution lines for 100 percent of its generation. BTM solar customers only need transmission lines that support the extra demand not met by their solar array. 

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