PV-friendly pricing: the commercialization of grid-tied PV systems by electric utilities

The photovoltaic industry has long searched for the technology breakthrough or strategic high-value application that would make grid-tied PV systems economical and open a significant mainstream domestic market for the electric utility industry. The quest continues, but investigations of a new marketing approach have begun and it offers the opportunity for electric utilities to market grid-tied PV systems successfully at today's prices. This new business opportunity for electric utilities centers around tapping into customers who are willing to pay a premium for energy generated by environmentally-friendly renewable resources. Ascension Technology, with funding from the Utility PhotoVoltaic Group (UPVG), is providing engineering services to support seven electric utilities in a "PV Friendly Pricing" program, in which the utilities are testing this "green" customer market. The seven pioneering utilities are Arizona Public Service, City of Austin, Central and SouthWest Services, Detroit Edison, New York State Electric and Gas, Northern States Power and Wisconsin Public Service. Studies have been completed by these utilities to assess the market size, customer preferences and price sensitivities. The utilities are now crafting and implementing their own specific programs. The deployment of grid-tied PV systems, supported by voluntary customer contributions has begun. This paper provides a review of these unique, first-of-their-kind programs, with details of the marketing approaches, the customer response and participation, and the resulting PV installations.