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At least 37 records · Page 2

A Review of Value of Solar Studies In Theory and In Practice

This brief summarizes a collection of state- and utility-commissioned value-of-solar (VoS) studies and related literature, with a focus on who commissioned the study, which value and cost categories were discussed and/or quantified, and the methods used. Our objective is to compile information on prior VoS studies to inform state regulators and other stakeholders that may pursue related studies or integrate findings into rate design. The brief is organized into three parts: 1) an introduction to distributed solar photovoltaic (DPV) compensation; 2) a review of theoretical research on VoS; and 3) a review of VoS studies. The vast majority of VoS studies have served an informational role of quantifying the net benefits of PV. Three studies were commissioned in states or utility service territories that subsequently implemented VoS tariffs in California, New York, and Austin, Texas. When applied as a tariff, VoS aims to compensate PV output as efficiently as possible by doing so at rates that reflect the marginal benefits and costs of PV through value and cost categories that may vary temporally and/or geographically. This could lead to higher compensation in locations and times where more PV output is more valuable and consequently drive adoption in those locations to provide more societal benefits. Value and cost factors can be broadly grouped into five categories: generation, transmission, distribution, other utility, and other social categories. Those conducting VoS studies must weigh various tradeoffs when deciding which categories to include and quantify. Tradeoffs include prioritizing values based on their magnitude of value or cost impact, as well as taking into account the feasibility of data collection and accurate quantification. Values of higher magnitude and estimation feasibility are quantified in the majority of studies, including the earliest of studies conducted in the 2000s and 2010s. Additionally, some values of higher magnitude but low feasibility in the earliest of studies have become quantifiable in recent years. There are some values with low average system-wide levels but very high magnitude in specific locations or hours. The value magnitude in some cases can be tied to DPV penetration with low value in areas with little congestion and/or low penetration and vice versa. In these cases, values that are easier to quantify are often incorporated, while those that are more difficult are often addressed via a placeholder value. The placeholder value is paired with a discussion around data needs and methods to improve future estimates, as well as a conversation about when these value categories may increase in magnitude and necessitate more rigorous quantification. This brief summarizes findings from two meta-analyses of VoS studies that took place between 2005 and 2018, as well as findings from four additional studies published from 2018 to 2023. Table ES-1 summarizes the various value and cost categories included in each respective study and whether they were quantified, discussed, or omitted. Values such as avoided energy, capacity, transmission capacity, line losses, and avoided environmental costs are quantified in every study. Some categories were deemed harder to quantify and less impactful at the time of the study, so they were discussed but not quantified (e.g., ancillary services). Other categories, including many at the distribution level, were very locationally and/or temporally specific and dependent on high DPV penetration. These were sometimes quantified and at other times discussed. Notably, when it came to utility costs, integration costs were discussed in all cases, though they were deemed to have a small impact. Other utility costs were omitted for the most part; however, the utility-commissioned study (by NorthWestern Energy in Montana) included both lost utility revenue and programmatic/administrative cost categories. While there are some similarities across studies, each had fairly unique methods that are detailed in the body of this brief.

14 SOLAR ENERGY↗

Electricity Rate Designs for Large Loads: Evolving Practices and Opportunities 2026 Update

Electricity demand from large-load customers such as data centers is projected to grow significantly in the near term. While these large loads play an important role in advancing technology innovation and economic growth in the United States, meeting their energy needs requires utilities and regulators to consider important operational and financial risks, such as insufficient energy supply or underutilized investments, that can impact all customers. This paper builds on similar research published in January 2025, providing an overview of how utilities and regulators are managing these risks through different tariffs, including rate structures and electric service agreements. Regulators, utilities, customers, and other stakeholders can use this paper as a foundation when discussing issues and sharing perspectives on developing or reviewing large-load tariffs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Q1-2024 Solar Cost Benchmarks

Each year, the U.S. Department of Energy’s (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners develop cost benchmarks for U.S. solar photovoltaic (PV) systems. These benchmarks track progress toward reducing solar costs and guide R&D priorities. Unlike typical studies that report only $/W, SETO uses intrinsic units (e.g., $/m² for mounting structures) to better capture how technology improvements such as module efficiency would impact system costs. This allows flexible modeling where inputs can vary significantly to assess cost sensitivity. Costs are reported in two ways: Minimum Sustainable Price (MSP): Long term, financially viable price under stable market conditions. Modeled Market Price (MMP): Actual market price, influenced by short term distortions such as tariffs or subsidies. Three national labs collect cost data from industry stakeholders, ensuring no duplication in outreach to stakeholders. Data reflects real transactions (primarily from Q1) and is weighted based on the number of sources per cost element. The PV System Cost Model (PVSCM) divides total installed system cost into eight categories: 1. Module (PV) 2. Inverter 3. Energy Storage System (ESS) 4. Structural BOS (SBOS) 5. Electrical BOS (EBOS) 6. Fieldwork 7. Office work 8. Other (developer/EPC costs) The first five are hardware costs, while the last three are soft costs. Each category includes fixed and variable cost components, where “size” depends on context (e.g., manufacturing capacity for modules vs. system capacity for installation costs). Variable costs are expressed using appropriate intrinsic units. The model reflects the owner’s upfront overnight capital cost, excluding tax credits. Tariffs and subsidies are treated as temporary market distortions affecting MMP but not MSP. PVSCM is implemented in Excel, where cost elements are aggregated into total system cost. Additional sheets handle unit conversions and operation & maintenance (O&M), with O&M costs levelized over the system’s lifetime.

14 SOLAR ENERGY↗

Equity-driven Planning of Distributed Solar PV using Optimal Transport

Typically, distribution system planning processes do not explicitly incorporate energy equity considerations, such as identifying consumers most affected by energy costs and determining how investments in the distribution system can address existing energy burden imbalances. This paper proposes a novel optimal transport (OT)-based method to improve the energy burden distribution of consumers. The approach involves the strategic siting and sizing of solar PV in order to assist customers with high energy burden and improve the overall energy burden distribution of the community. The desired energy burden distribution is defined using the equal distribution equivalent (EDE) concept. The OT-based method is then used to estimate the distributed solar PV capacity to be installed at various locations and the tariffs to be adjusted, all while improving the energy burden distribution and providing valuable insights into distributed generation (DG) planning. The results on IEEE 37 bus test system demonstrate how DG planning, considering EDE and OT, can help reduce the energy burden of low-income consumers. Additionally, the approach also reveals optimal tariff adjustments needed to ensure revenue neutrality for distribution utilities.

Optimal transport, equal distribution equivalent, ↗

Network-Aware and Welfare-Maximizing Dynamic Pricing for Energy Sharing

The proliferation of behind-the-meter (BTM) distributed energy resources (DER) within the electrical distribution network presents significant supply and demand flexibilities, but also introduces operational challenges such as voltage spikes and reverse power flows. In response, this paper proposes a network-aware dynamic pricing framework tailored for energy-sharing coalitions that aggregate small, but ubiquitous, BTM DER downstream of a distribution system operator's (DSO) revenue meter that adopts a generic net energy metering (NEM) tariff. By formulating a Stackelberg game between the energy-sharing market leader and its prosumers, we show that the dynamic pricing policy induces the prosumers toward a network-safe operation and decentrally maximizes the energysharing social welfare. The dynamic pricing mechanism involves a combination of a locational ex-ante dynamic price and an ex-post allocation, both of which are functions of the energy sharing's BTM DER. The ex-post allocation is proportionate to the price differential between the DSO NEM price and the energy-sharing locational price. Simulation results using real DER data and the IEEE 13-bus test systems illustrate the dynamic nature of network-aware pricing at each bus, and its impact on voltage.

aggregates↗

2025 Large Load Literature Review

This literature review catalogs more than 90 publications focused on large loads, and groups the documents and resources thematically into 12 categories, (listed below). The 2026 Large Load Literature Review and Data Sources summary reports are available here: https://emp.lbl.gov/publications/2026-large-load-literature-review -Load forecasting -Data sources -Reliability and resource adequacy -Large load interconnection -Demand flexibility -Generation -Co-location -Data center location/infrastructure -Large load tariffs -Policy options -Maps and tools -Design and operations

97 MATHEMATICS AND COMPUTING↗

Economics of electric vehicle corridor fast charging in the United States

Corridor direct-current fast charging (DCFC) stations enable long-distance electric vehicle travel, yet their economics remain uncertain due to high capital costs, low initial utilization, and exposure to utility demand charges. This study evaluates the long-term economics of corridor DCFC across the United States, incorporating capital and operating expenses-including charging equipment and real-world utility tariffs-alongside modeled station utilization, financial incentives, and ancillary retail revenue. In the Baseline scenario, modeled breakeven costs for corridor DCFC average $\$$0.42/kWh over 20 years, yet fewer than half of stations reach cost parity with gasoline on a per-mile basis. Utilization is the primary driver of cost variation, with low-utilization stations costing roughly six times more per kilowatt-hour than the national average. Excluding stations that fail to reach cost parity reduces National Highway System coverage within 50 miles from 94% to 67%, underscoring the trade-off between market-driven deployment and comprehensive network coverage. These results provide guidance for charging providers, utilities, planners, and policymakers seeking to develop and sustain a financially viable national corridor charging network.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Performance evaluation of underground thermal storage integrated dual-source heat pump systems

The increasing demand for electricity stresses the existing electric grids. Buildings consume 73% of all U.S. electricity and are responsible for 30% of U.S. greenhouse gas emissions. Integrating thermal energy storage (TES) in building heating/cooling systems, which consume considerable electricity, can mitigate the challenges to electric grids. Here, this study reports on a novel thermal energy storage device integrated heat pump system to reshape the building electricity demand profile while maintaining thermal comfort. The annual performance of the proposed system has been evaluated through a dynamic system simulation with high fidelity in the Modelica platform. The dynamic model of the novel hybrid component named ‘dual purpose underground thermal battery’ was developed and validated. It was then incorporated into the system model. Given a time-of-use tariff, a rule-based control strategy was designed to shift the electric demand and switch the heat pump source for a typical single-family house in different climate zones of the United States. The system performance of the new TES-integrated dual-source heat pump was compared with that of a conventional air-source heat pump system. The results indicate that the proposed system can reduce the annual HVAC electricity cost by up to 52% while saving 45.2% on electricity consumption. In the Northern areas, the annual peak load of the HVAC system can be reduced by 64.9%. However, this reduction is less in the Southern areas as the system’s higher efficiency in winter dominates the overall energy-saving potential.

25 ENERGY STORAGE↗

Benefits of Dual Fuel Heat Pump Grid-responsive Control: A Model-based Control Optimization Approach Using Building and Equipment Co-simulation

Conventional dual fuel heat pumps lack the intelligent control mechanisms to efficiently manage the switch between heat pump and furnace, leading to sub-optimal energy usage and, in some cases, increased operating costs. To resolve this gap, this study applies optimized control on hybrid heat pumps. With a focus on equipment control strategies, we compare the performances of five spacing heating equipment, including a conventional heat pump (HP), a conventional furnace, a dual fuel heat pump (DFHP) with conventional control, a dual fuel heat pump with smart control, and a novel seamlessly fuel flexible heat pump (SFFHP). While DFHP runs on either gas or electricity at any given moment, SFFHP concurrently consumes gas and electricity by continuously optimizing the proportion of each. In this research, a co-simulation framework is developed by integrating a building envelope model with a physics-based heat pump simulation model to analyze the benefits of grid-responsive controls of DFHP and SFFHP. The model-based optimal controls adjust the operation of the heat pump and gas furnace based on utility price signals and marginal grid emission to minimize utility cost and CO 2 emissions for multiple climate zones, different utility tariffs, and marginal grid emission scenarios. Case studies in Chicago and Los Angeles demonstrate that SFFHP and DFHP, with model-based optimal control, can deliver significant reductions in peak demand, utility cost, and CO 2 emission. In Chicago, SFFHP and smart controlled DFHP yield up to 64.7% and 61.7% utility cost reduction and up to 15.7% and 8.5% CO 2 emission reduction compared to the gas furnace. In Los Angeles, SFFHP and smart controlled DFHP achieve up to 43.6% and 40.1% utility cost reduction and up to 13.8% and 14.1% CO2 emission reduction compared to conventional heat pumps. In conclusion, by leveraging the fuel flexibility nature of dual fuel heat pumps, the model-based control optimization approach makes dual fuel heat pump an attractive option for demand response programs.

Control↗

Techno-economic implications and cost of forecasting errors in solar PV power production using optimized deep learning models

Accurate solar Photovoltaic (PV) power forecasting is important for enhancing both the performance and economic feasibility of PV systems. This study evaluates several deep learning models, including Dense Neural Networks (DNN), Long Short-Term Memory (LSTM), Convolutional Neural Networks (CNN), and a hybrid LSTMCNN model, for predicting PV power production one day in advance. Prior to optimization, the models exhibited relatively high errors, with the best model (DNN) achieving a Root Mean Square Error (RMSE) of 31.13 kW and a coefficient of determination (R 2 ) of 62.15 %. After employing Bayesian optimization, the LSTM-CNN model demonstrated the best performance, with the RMSE reduced to 9.79 kW and R 2 improved to 97.62 %, showcasing significant enhancement in predictive accuracy. Here, the economic evaluation considered three cases: rewards for underestimation (0.08 USD/kWh), no rewards, and penalties for both over-and underestimation (120 % of the utility tariff). In the rewards scenario, the LSTM-CNN model reduced the Levelized Cost of Electricity (LCOE) by 4 %, while in the penalty scenario, a backup diesel generator would have increased the LCOE by 49 %. Additionally, the LSTM-CNN model minimized financial losses, achieving the lowest penalties and maximizing net cash flow compared to other models, demonstrating its overall technical and economic superiority.

Deep learning↗

Optimizing Desalination Operations for Energy Flexibility

Despite the value of energy optimization in desalination processes, modeling dynamic operations for monthly billing periods has remained a computational challenge. This work proposes a framework for energy flexibility optimization, which includes new modeling features for independent operation of parallel skids, start-up delays associated with chemical stabilization, the consideration of industrial energy tariff structures, and inclusion of hourly electrical carbon intensities. This is done using a modular and computationally efficient formulation that guarantees a globally optimal solution with standard optimization solvers. In this study, the approach is demonstrated in two distinct case studies: a seawater desalination plant in Santa Barbara, CA, and an indirect potable reuse facility in San Jose, CA. Trends predicted from the model are validated against operational facility measurements from a demand response shutdown event. Preliminary results show that optimizing energy flexibility can result in 18.51% monthly cost savings over energy efficiency-optimized operation. The value extracted from a facility-wide shutdown during peak electricity price hours is hampered by start-up delays in post-treatment chemical stabilization. In cases in which a facility does not have much excess capacity, using a flow equalization tank or operating over a wide recovery range may be cost-effective.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Solar and battery can reduce energy costs and provide affordable outage backup for US households

Distributed energy resources are promising solutions for household energy affordability and resilience as weather extremes and aging infrastructure intensify grid reliability risks. This study presents a comprehensive nationwide assessment of over 500,000 U.S. households, evaluating economic and backup viability of solar-battery systems. We find that 60% of households could reduce electricity costs with average savings of 15%, while 63% of households could achieve affordable backup power during power outages covering an average of 51% of their essential energy needs. However, these benefits show limited alignment with areas of greatest need, particularly in regions facing high outage risks. We also identify significant disparities in access to solar and battery, with less-populated and disadvantaged communities showing consistently lower viability. Furthermore, these findings demonstrate the need for targeted policy interventions to ensure equitable access to solar-battery benefits, especially as states transition from net energy metering to other electricity tariff policies.

14 SOLAR ENERGY↗

A Decentralized Market Mechanism for Energy Communities under Operating Envelopes

Here, we propose an operating envelopes (OEs) aware energy community market mechanism that dynamically charges/rewards its members based on two-part pricing. The OEs are imposed exogenously by a regulated distribution system operator (DSO) on the energy community's revenue meter and is subject to a generalized net energy metering (NEM) tariff design. By formulating the interaction of the community operator and its members as a Stackelberg game, we show that the proposed two-part pricing achieves a Nash equilibrium and maximizes the community's social welfare in a decentralized fashion while ensuring that the community's operation abides by the OEs. The market mechanism conforms with the cost-causation principle and guarantees community members a surplus level no less than their maximum surplus when they autonomously face the DSO. The dynamic and uniform community price is a monotonically decreasing function of the community's aggregate renewable generation. We also analyze the impact of exogenous parameters such as NEM rates and OEs on the value of joining the community. Lastly, through numerical studies, we showcase the community's welfare, and pricing, and compare its members' surplus to customers under the DSO's regime.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Occupant-Centric Demand Response for Thermostatically-Controlled Home Loads

Efficiently managing energy usage to balance supply and demand on the electric grid is crucial, especially with the widespread deployment of distributed variable renewable electricity generation. This paper introduces two duty-cycle control methods for heating systems, adjusting thermostat setpoints to limit and shift electricity demand. The control approaches employ innovative techniques, such as adaptive duty cycling, to prioritize household thermal comfort while reducing peak demand. These control methods can respond to signals from the electric grid, including demand targets and time-of-use tariffs, and were tested physically on an electric furnace and heat pump in a test home during winter conditions in 2021 and 2022. The results are given as average demand reductions and energy use impacts with respect to the average indoor-outdoor temperature difference during the control period. For heat pumps, demand limiting control reduced power by 18.5% and 23.3% for indoor-outdoor temperature differences of 30°F and 40°F. Preheating-based demand shifting achieved reductions of 34.8% and 33.2% for the same temperature differences. Electric furnace tests showed demand reductions of 33.8% and 25.3% for demand limiting, and 56.1% and 45.7% for preheating-based demand shifting. These findings highlight the potential for innovative control methods to enhance grid efficiency and reduce energy consumption.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Techno-Economic Analysis for the Addition of Thermal Energy Storage to a Campus With Existing Battery Storage

Rising global temperatures and increasing energy demands pose significant challenges for energy management, particularly in institutional and commercial settings. As cooling needs grow, campuses must balance operational efficiency, cost control, and grid stability. Energy storage solutions, such as thermal energy storage (TES) systems, offer a promising approach to shifting energy consumption from peak to off-peak periods, alleviating peak demand, reducing utility costs, and enhancing grid resilience. When integrated with existing battery energy storage systems (BESS), TES can further optimize load management and improve energy savings, especially in buildings with diverse energy needs. This article presents a techno-economic analysis of integrating a chilled water TES system into the central plant at California State University, Dominguez Hills, which already operates a BESS. We assess three TES sizing strategies—full storage, load leveling, and peak demand limiting—by modeling and simulations based on historical energy loads. Our findings show that we can control TES systems to complement BESS operation, with campus-level load leveling providing the greatest cost savings by reducing peak demands. Furthermore, the study also evaluates the long-term economic viability of TES, considering installation costs, energy savings, and payback periods under varying tariffs. This research offers practical guidance for institutions seeking to enhance energy resilience and reduce operational costs through energy storage solutions.

25 ENERGY STORAGE↗

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

A Reverse Logistics Tool For Ev Battery Recycling And Repurposing,

The demand for electric vehicles (EVs) in the United States is projected to rise significantly, with sales expected to reach approximately 4.1 million units by 2030. However, the U.S. remains heavily reliant on imports for the batteries and critical raw materials—such as lithium, cobalt, and nickel—that power these vehicles. As of 2024, around 70% of these imports originate from China. This dependency has become even more precarious following China’s imposition of export restrictions in April 2025, a retaliatory move against U.S. tariffs. These developments highlight the strategic vulnerabilities posed by China’s dominant position in the critical materials market. Compounding the issue, decades of intensive extraction have severely depleted global reserves of critical materials, widening the gap between supply and growing demand. This situation underscores the urgent need for the U.S. and other nations to diversify their sources of critical materials and enhance domestic capabilities to secure these resources—an essential step toward ensuring long-term energy security. At the end of their lifecycle—whether due to the battery’s degradation or the retirement of the vehicle—EV batteries are often improperly disposed of or sent to landfills. However, many of these batteries still retain usable capacity and can follow one of three alternative pathways: (a) Re-used: deployed in another vehicle with a shorter driving range, (b) Re-purposed: utilized act as a backup storage/power for data centers, solar panels, and e-scotters or (c) Recycled: broken down to recover the critical materials. To that end, the proposed tool (REBORN) is designed to optimize the reverse logistics network for battery repurposing and recycling. Its goal is to minimize associated costs while identifying optimal locations for battery collection and processing. Ultimately, REBORN ensures that each battery is used to its fullest potential.

Srinivas, SrikarV. [Idaho National Laboratory (INL↗

Baseline vs. DER Scenario

Projections and associated uncertainty estimates are generated for a variety of user-selectable EV charging sessions, electricity tariffs, subsidy levels, revenue schemes, charging station configurations, and on-site solar and/or storage options. The outputs are presented in CHIP's web portal browser in the form of easily interpretable graphics (interactive graphs and bar charts) that facilitate convenient comparison among different scenarios to aid decision-making. The user should bring assumptions for modeling on simulation planning horizon, number of EV charging sessions per year, electricity costs (energy and demand charge rates; flat versus time-of-use rate), site capital costs (equipment for EV chargers and transformer), solar PV, and battery energy storage (kW).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗