Utility Response to Solar Distributed Generation
Developing both a defensive and offensive strategy for the distributed solar PV market.
KEy Business Challenges
- A top five North American Regulated utility had observed increases in applications for Net Energy Metering (NEM) customers and Solar Photovoltaic (PV) Qualifying Facilities (QFs).
- They were concerned about the impact on their underlying fundamentals and ability to recover funds used for obligations to purchase power from QFs.
- Given the future implications of these trends, the client needed to develop a coordinated response, but first required internal alignment on urgency and potential impact of the trends. Over the longer term, the client also wanted to use solar PV to help drive earnings growth.
- Bridge partnered with our client and leveraged our proprietary models to quantify timing and magnitude of impacts:
- Interviewed executives and internal experts, uncovering the need to build alignment and communicate a consistent fact base
- Leveraged proprietary Bridge models and tools, using solar PV installation costs, incentives, technical parameters, and rate forecasts as inputs, to develop expected timing for both residential and commercial retail rate parity across all jurisdictions
- Facilitated workshops and interviews with other utilities to identify best practices and review potential solution approaches to the solar challenge
- Provided additional insights and shifted mindsets of key employees on the realities of solar PV economics
- Developed a unified point of view and presented results to Senior Executives that resulted in target timeline
- Created range of mitigation strategies as well as identified investment opportunities to capture upside from solar PV