Rate Considerations Related to Solar Distributed Generation

As distributed energy resources (DER) gain prevalence on rural distribution systems, implementation of sound rate design methodology is more important than ever for Rural Electric Cooperatives. IEEE Standard 1547 addresses many of the engineering concerns related to the interconnection of DER, but there is limited documentation with respect to the economic impact to utilities and their customers under various interconnection scenarios. There are a number of rate structures deployed among electric utilities today that address the impact of consumer DER augmentation with variable consequences to both the consumer and the utility. The analysis that follows evaluates scenarios under varying levels of solar penetration and the most frequently utilized billing mechanisms.