A REVIEW OF SOLAR PV BENEFIT & COST STUDIES

The report identifies a significant range of estimated DPV values driven by differences in local context, input assumptions, and methodologies. While there is general agreement on estimating energy and capacity values, there is less consensus on grid support services and unmonetized values such as financial, security, environmental, and social risks. The analysis highlights that no single study comprehensively evaluated all DPV benefits and costs, and that costs associated with increased deployment are often inadequately assessed.

• There is a wide variation in the estimated value of DPV across the 16 reviewed studies, primarily caused by differences in local electricity system characteristics, input assumptions (such as natural gas price forecasts), and methodological approaches.
• While there is general agreement on the approach to estimating energy and capacity values, there is significantly less agreement on how to estimate grid support services and unmonetized values, including social, environmental, security, and financial risks.
• No study reviewed provided a comprehensive evaluation of all DPV benefits and costs, although many agreed on the broad categories of these factors.
• The costs associated with the increased deployment of DPV are not sufficiently assessed in the reviewed literature.
• Energy value is typically the most significant source of benefit and is generally calculated as the avoided cost of the marginal resource, which is usually natural gas.
• Generation capacity value is most accurately determined using the Effective Load Carrying Capability (ELCC) approach, which measures the additional load that can be met with the same reliability after adding DPV.
• Transmission and distribution (T&D) capacity value is highly site-specific; while strategically targeted DPV can defer investments, dispersed deployment provides less benefit.
• There is ongoing uncertainty and controversy regarding whether DPV provides or requires additional grid support services, and how to allocate those costs.
• The value of carbon reduction is heavily dependent on the price placed on carbon and the emission intensity of the marginal resource being displaced.
• As DPV penetration increases, the marginal economic value of solar tends to drop, initially driven by a decrease in capacity value and eventually by a decrease in energy value as lower-cost resources are displaced.

APA

RMI (2013). A REVIEW OF SOLAR PV BENEFIT & COST STUDIES. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_eLab-DER-Benefit-Cost-Deck_2nd-Edition_130903.pdf

Chicago

RMI. A REVIEW OF SOLAR PV BENEFIT & COST STUDIES. 2013. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_eLab-DER-Benefit-Cost-Deck_2nd-Edition_130903.pdf.

Wikipedia

{{cite report |author=RMI |title=A REVIEW OF SOLAR PV BENEFIT & COST STUDIES |date=September 2013 |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_eLab-DER-Benefit-Cost-Deck_2nd-Edition_130903.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2013review, author = {{RMI}}, title = {{A REVIEW OF SOLAR PV BENEFIT \& COST STUDIES}}, institution = {RMI}, year = {2013}, month = sep, url = {https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_eLab-DER-Benefit-Cost-Deck_2nd-Edition_130903.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }