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At least 487 records · Page 27

Variance Analysis of Wind and Natural Gas Generation under Different Market Structures: Some Observations

An important area of current research is whether large-scale penetration of variable renewable generation such as wind and solar power pose economic and operational burdens on the electricity system. In such scenarios, this issue has also raised considerable interest in the potential role and value of electricity storage as a method of mitigating variability in generation associated with the inherently variable nature of these forms of generation. At the same time, a number of studies have pointed to the potential benefits of renewable generation as a hedge against the volatility and potential escalation of fossil fuel prices. Prior research and this work suggest that the lack of correlation of renewable energy costs with fossil fuel prices means that adding large amounts of wind or solar generation may also reduce the volatility of system-wide electricity costs. Such variance reduction in overall system costs may be of significant value to consumers due to risk aversion. In contrast to this observation, other studies have focused on returns in restructured markets and noted that, in deregulated markets, baseload natural gas power generation may be relatively more attractive to investors because-unlike wind generation-peak power prices are often strongly correlated to natural gas prices. The analysis in this report recognizes that the potential value of risk mitigation associated with wind generation and natural gas generation may depend on whether one considers the consumer's perspective or the investor's perspective and whether the market is regulated or deregulated. We analyze the risk and return trade-offs for wind and natural gas generation for deregulated markets based on hourly prices and load over a 10-year period using historical data in the PJM Interconnection (PJM)2 from 1999 to 2008. Similar analysis is then simulated and evaluated for regulated markets under certain assumptions. Estimating the absolute value, as opposed to the relative value, of variance reduction will also depend on assumptions about risk aversion and other consumer preferences, such as loss aversion, and this is discussed.

03 NATURAL GAS↗

Protecting Intelligent Distributed Power Grids against Cyber Attacks

Like other industrial sectors, the electrical power industry is facing challenges involved with the increasing demand for interconnected operations and control. The electrical industry has largely been restructured due to deregulation of the electrical market and the trend of the Smart Grid. This moves new automation systems from being proprietary and closed to the current state of Information Technology (IT) being highly interconnected and open. However, while gaining all of the scale and performance benefits of IT, existing IT security challenges are acquired as well. The power grid automation network has inherent security risks due to the fact that the systems and applications for the power grid were not originally designed for the general IT environment. In this paper, we propose a conceptual layered framework for protecting power grid automation systems against cyber attacks. The following factors are taken into account: (1) integration with existing, legacy systems in a non-intrusive fashion; (2) desirable performance in terms of modularity, scalability, extendibility, and manageability; (3) alignment to the 'Roadmap to Secure Control Systems in the Energy Sector' and the future smart grid. The on-site system test of the developed prototype security system is briefly presented as well.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Building Stronger State Partnerships With the US Dept. Of Energy (Energy Assurance)

From 2007 until 2011, the National Association of Regulatory Utility Commissioners (NARUC) engaged in a partnership with the National Energy Technology Lab (NETL) to improve State-Federal coordination on electricity policy and energy assurance issues. This project allowed State Public Utility Commissioners and their staffs to engage on the most cutting-edge level in the arenas of energy assurance and electricity policy. Four tasks were outlined in the Statement of Performance Objectives: Task 1 - Training for Commissions on Critical Infrastructure Topics; Task 2 - Analyze and Implement Recommendations on Energy Assurance Issues; Task 3 - Ongoing liaison activities & outreach to build stronger networks between federal agencies and state regulators; and Task 4 - Additional Activities. Although four tasks were prescribed, in practice these tasks were carried out under two major activity areas: the critical infrastructure and energy assurance partnership with the US Department of Energy's Infrastructure Security and Emergency Response office, and the National Council on Electricity Policy, a collaborative which since 1994 has brought together State and Federal policymakers to address the most pressing issues facing the grid from restructuring to smart grid implementation. On Critical Infrastructure protection, this cooperative agreement helped State officials yield several important advances. The lead role on NARUC's side was played by our Committee on Critical Infrastructure Protection. Key lessons learned in this arena include the following: (1) Tabletops and exercises work - They improve the capacity of policymakers and their industry counterparts to face the most challenging energy emergencies, and thereby equip these actors with the capacity to face everything up to that point as well. (2) Information sharing is critical - Connecting people who need information with people who have information is a key success factor. However, exposure of critical infrastructure information to bad actors also creates new vulnerabilities. (3) Tensions exist between the transparency-driven basis of regulatory activity and the information-protection requirements of asset protection. (4) Coordination between states is a key success factor - Because comparatively little federal authority exists over electricity and other energy infrastructure, the interstate nature of these energy grids defy centralized command and control governance. Patchwork responses are a risk when addressed at a state-by-state level. Coordination is the key to ensuring consistent response to shared threats. In Electricity Policy, the National Council on Electricity Policy continued to make important strides forward. Coordinated electricity policy among States remains the best surrogate for an absent national electricity policy. In every area from energy efficiency to clean coal, State policies are driving the country's electricity policy, and regional responses to climate change, infrastructure planning, market operation, and new technology deployment depend on a forum for bringing the States together.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Alternative Approaches for Incentivizing the Frequency Responsive Reserve Ancillary Service

Frequency responsive reserve is the autonomous response of generators and demand response to deviations of system frequency, usually as a result of the instantaneous outage of a large supplier. Frequency responsive reserve arrests the frequency decline resulting in the stabilization of system frequency, and avoids the triggering of under-frequency load-shedding or the reaching of unstablefrequencies that could ultimately lead to system blackouts. It is a crucial service required to maintain a reliable and secure power system. Regions with restructured electricity markets have historically had a lack of incentives for frequency responsive reserve because generators inherently provided the response and on large interconnected systems, more than sufficient response has beenavailable. This may not be the case in future systems due to new technologies and declining response. This paper discusses the issues that can occur without proper incentives and even disincentives, and proposes alternatives to introduce incentives for resources to provide frequency responsive reserve to ensure an efficient and reliable power system.

17 WIND ENERGY↗

Illinois Wind Workers Group

The Illinois Wind Working Group (IWWG) was founded in 2006 with about 15 members. It has grown to over 200 members today representing all aspects of the wind industry across the State of Illinois. In 2008, the IWWG developed a strategic plan to give direction to the group and its activities. The strategic plan identifies ways to address critical market barriers to the further penetration of wind. The key to addressing these market barriers is public education and outreach. Since Illinois has a restructured electricity market, utilities no longer have a strong control over the addition of new capacity within the state. Instead, market acceptance depends on willing landowners to lease land and willing county officials to site wind farms. Many times these groups are uninformed about the benefits of wind energy and unfamiliar with the process. Therefore, many of the project objectives focus on conferences, forum, databases and research that will allow these stakeholders to make well-educated decisions.

17 WIND ENERGY↗

Automatic Transformation of MPI Programs to Asynchronous, Graph-Driven Form

The goals of this project are to develop new, scalable, high-fidelity algorithms for atomic-level simulations and program transformations that automatically restructure existing applications, enabling them to scale forward to Petascale systems and beyond. The techniques enable legacy MPI application code to exploit greater parallelism though increased latency hiding and improved workload assignment. The techniques were successfully demonstrated on high-end scalable systems located at DOE laboratories. Besides the automatic MPI program transformations efforts, the project also developed several new scalable algorithms for ab-initio molecular dynamics, including new massively parallel algorithms for hybrid DFT and new parallel in time algorithms for molecular dynamics and ab-initio molecular dynamics. These algorithms were shown to scale to very large number of cores, and they were designed to work in the latency hiding framework developed in this project. The effectiveness of the developments was enhanced by the direct application to real grand challenge simulation problems covering a wide range of technologically important applications, time scales and accuracies. These included the simulation of the electronic structure of mineral/fluid interfaces, the very accurate simulation of chemical reactions in microsolvated environments, and the simulation of chemical behavior in very large enzyme reactions.

97 MATHEMATICS AND COMPUTING↗

Disposal Systems Evaluation Framework DSEF User Manual (V.3.0)

The Disposal Systems Evaluation Framework (DSEF) has been developed at Lawrence Livermore National Laboratory (LLNL) to formalize and facilitate the development and documentation of repository conceptual design options for a range of waste forms, geologic environments, repository design concepts, and repository operating modes. DSEF is one component of the Engineered Barrier System (EBS) family of work packages at several national laboratories led by Sandia National Laboratories (SNL), in support of the DOE Office of Nuclear Energy, specifically of the Used Fuel Disposition (UFD) Campaign within the Office of Used Nuclear Fuel Disposition Research and Development (NE-53). DSEF is a knowledge management system that allows the user to intelligently access and draw data from a case library of hundreds of completed thermal analyses (currently 721 cases in the library), and draw input from databases of material properties and repository development cost data (currently the data in these databases are drawn from more than 100 references). The core functionality of DSEF is provided by a Microsoft Office Excel 2010 workbook with macros and form controls that create a structured environment and walk the user through the steps of creating the input data required to perform disposal system evaluations internally and by interfacing with external programs. The user can choose to work with built-in data from the case library of previous analysis cases, from the material property databases, or can define their own input descriptions and data. DSEF uses the Excel worksheet protection (implemented on a sheet by sheet basis) to prevent inadvertent over-writing of formulas with data. When worksheet protection is enabled, the user can see all underlying formulas, and enter data in unprotected cells (the unprotected cells generally correspond to the yellow highlighted cells). Worksheet protection also prevents restructuring the files (adding or deleting rows or columns) and changing the formatting, as well as preventing access to the Visual Basic Editor to prevent modification of the macros. If the user needs to modify the worksheet structure, formulas, or macros, they can contact LLNL to get the password to unprotect the worksheets. However, care should be taken in making any modifications, since the macros and formulas are dependent in some cases on the current structure, range names, and macro subroutines DSEF is set up to retrieve the results of external thermal analysis program runs, summarize them graphically, and provide a template for adding the new results to the Case Library. The Case Library worksheet in DSEF is set up to create a Case Library data record for each new analysis case, at the top of the list of prior cases. Therefore, a separate DSEF file (with unique name) should be saved for each run that is to be archived. Users should submit a copy of their DSEF files to LLNL so that their results can be added to the overall Case Library and made available to other laboratories and stakeholders. LLNL will maintain the DSEF Case Library and make the most current files available on the SNL SharePoint site. The Revision History sheet documents the file evolution. One of the key objectives of DSEF is to allow the user to compare the results of thermal analyses to the thermal constraints of the design components. These comparisons can then be used to consider design, layout, and operating mode modifications to find combinations that can meet the thermal constraints for a given combination of waste form, geologic medium, surface storage time, and system concept of operation.

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗

Impact of Wind and Solar on the Value of Energy Storage

This analysis evaluates how the value of energy storage changes when adding variable generation (VG) renewable energy resources to the grid. A series of VG energy penetration scenarios from 16% to 55% were generated for a utility system in the western United States. This operational value of storage (measured by its ability to reduce system production costs) was estimated in each VG scenario, considering provision of different services and with several sensitivities to fuel price and generation mix. Overall, the results found that the presence of VG increases the value of energy storage by lowering off-peak energy prices more than on-peak prices, leading to a greater opportunity to arbitrage this price difference. However, significant charging from renewables, and consequently a net reduction in carbon emissions, did not occur until VG penetration was in the range of 40%-50%. Increased penetration of VG also increases the potential value of storage when providing reserves, mainly by increasing the amount of reserves required by the system. Despite this increase in value, storage may face challenges in capturing the full benefits it provides. Due to suppression of on-/off-peak price differentials, reserve prices, and incomplete capture of certain system benefits (such as the cost of power plant starts), the revenue obtained by storage in a market setting appears to be substantially less than the net benefit (reduction in production costs) provided to the system. Furthermore, it is unclear how storage will actually incentivize large-scale deployment of renewables needed to substantially increase VG penetration. This demonstrates some of the additional challenges for storage deployed in restructured energy markets.

14 SOLAR ENERGY↗

Advanced Simulation and Computing Fiscal Year 2011-2012 Implementation Plan, Revision 0.5

The Stockpile Stewardship Program (SSP) is a single, highly integrated technical program for maintaining the surety and reliability of the U.S. nuclear stockpile. The SSP uses past nuclear test data along with current and future non-nuclear test data, computational modeling and simulation, and experimental facilities to advance understanding of nuclear weapons. It includes stockpile surveillance, experimental research, development and engineering (D&E) programs, and an appropriately scaled production capability to support stockpile requirements. This integrated national program requires the continued use of current facilities and programs along with new experimental facilities and computational enhancements to support these programs. The Advanced Simulation and Computing Program (ASC) is a cornerstone of the SSP, providing simulation capabilities and computational resources to support the annual stockpile assessment and certification, to study advanced nuclear weapons design and manufacturing processes, to analyze accident scenarios and weapons aging, and to provide the tools to enable stockpile Life Extension Programs (LEPs) and the resolution of Significant Finding Investigations (SFIs). This requires a balanced resource, including technical staff, hardware, simulation software, and computer science solutions. In its first decade, the ASC strategy focused on demonstrating simulation capabilities of unprecedented scale in three spatial dimensions. In its second decade, ASC is focused on increasing its predictive capabilities in a three-dimensional (3D) simulation environment while maintaining support to the SSP. The program continues to improve its unique tools for solving progressively more difficult stockpile problems (focused on sufficient resolution, dimensionality, and scientific details); to quantify critical margins and uncertainties; and to resolve increasingly difficult analyses needed for the SSP. Moreover, ASC has restructured its business model from one that was very successful in delivering an initial capability to one that is integrated and focused on requirementsdriven products that address long-standing technical questions related to enhanced predictive capability in the simulation tools.

71 CLASSICAL AND QUANTUM MECHANICS, GENERAL PHYSIC↗

High speed, multi-channel, user programmable digital data acquisition system.

As applications for radiation detection become more demanding, and in turn improvements are made in the technology of radiation detection, there is a need for high speed digital detector readout electronics matching these improvements. Specifically, full control over the on-line processing resources of modern digital electronics is desirable so that researchers can develop custom algorithms for special applications.In the proposed effort, the 500 MHz digital readout electronics previously developed by our company will be redesigned to allow user access to the on-line processing resources. In Phase I, the division of online processing into vendor and user firmware sections has been studied on existing hardware. In Phase II, the hardware will be upgraded to better facilitate the division, and the firmware will be restructured into a robust vendor logic block (providing standard functions such as host I/O, on-board memory I/O, energy computation, MCA spectra, timestamps, waveform capture, run statistics, and triggering and timing) and a user logic block for custom algorithms (with templates and examples for frequently used functions). Investigating several options to divide online processing, it was determined that the most promising approach is to “partition” a single FPGA integrated circuit into a vendor and user section, which is supported in newer devices. The analog front end of the existing electronics proved suitable for most applications, in particular high rate measurements with germanium detectors. The design architecture for new electronics was developed, combining one of the new FPGA device with the analog front end.

46 INSTRUMENTATION RELATED TO NUCLEAR SCIENCE AND ↗

LLNL Preliminary Assessment of CPUC EM&V Program

At the request of Commissioner Dian Grueneich, Lawrence Livermore National Laboratory (LLNL) has reviewed the Evaluation, Measurement and Validation (EM&V) practices of the California Public Utility Commission (CPUC) Energy Efficiency (EE) Program. LLNL's examination was performed through reviews of documents written by the CPUC, namely decisions, rulings, and Energy Division staff reports, as well as other reports written by experts in energy efficiency. This document outlines our general findings from our preliminary investigation. We have identified and consolidated the intrinsic problems and issues that currently reside in the EM&V and RRIM mechanisms. The next step in our involvement would be to assist the CPUC in restructuring the program to enhance the overall value to the State.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Energy Efficiency and Conservation Block Grant (EECBG)- Better Buildings Neighborhood Program Final Report

The original BetterBuildings for Greensboro grant program included an outreach campaign to inform 100% of the Greensboro community about the benefits of reducing energy use; a plan to reduce energy consumption in at least 34% of the homes and 10% of the other buildings in the east Greensboro target area; and a plan to create and retain jobs in the energy conservation industry. Under the original program structure the City of Greensboro planned to partner with local and regional lenders to create a diversified portfolio of loan products to meet the needs of various income levels and building types. All participants would participate in the loan programs as a method of meeting the program’s 5 to1 private capital match/leverage requirements. In June 2011 the program was restructured to include partnerships with large commercial and multifamily projects, with these partners providing the greater portion of the required match/leverage. The geographic focus was revised to include reducing energy consumption across the entire City of Greensboro, targeting neighborhoods with high concentrations of low-moderate income households and aged housing stock. The community outreach component used a neighborhood-based approach to train community residents and volunteers to conduct door-to-door neighborhood sweeps; delivered high quality information on available program resources; helped residents to evaluate alternative energy efficiency measures and alternative financing sources; assisted with contractor selections and monitoring/evaluation of work; coordinated activities with BetterBuildings program partners; and collected data required by the Department of Energy. Additionally, HERO (Home Energy Response Officers) delivered intro packages (energy efficiency information and products) to thousands of households at the initial point of contact. A pilot program (Early Adopters) was offered from March 1, 2011 through June 30, 2011. The Early Adopters program was designed to offer immediate assistance to property owners ready and able to make their homes more energy efficient, by offering a rebate on their energy assessment and on the cost of upgrades installed. Eligible energy efficient upgrades were inclusive of basic level insulating and weather-stripping, HVAC system and water heater upgrades, to whole home upgrades that include the replacement of windows, doors and appliances. Renewable energy systems such as solar hot water systems were also eligible for the rebate program.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Isotopic Studies of O-O Bond Formation During Water Oxidation (SISGR)

Isotopic Studies of O-O Bond Formation During Water Oxidation (SISGR) Research during the project period focused primarily on mechanisms of water oxidation by structurally defined transition metal complexes. Competitive oxygen isotope fractionation of water, mediated by oxidized precursors or reduced catalysts together with ceric, Ce(IV), ammonium nitrate in aqueous media, afforded oxygen-18 kinetic isotope effects (O-18 KIEs). Measurement, calculation, and interpretation of O-18 KIEs, described in the accompanying report has important ramifications for the production of electricity and solar hydrogen (as fuel). The catalysis division of BES has acknowledged that understanding mechanisms of transition metal catalyzed water oxidation has major ramifications, potentially leading to transformation of the global economy and natural environment in years to come. Yet, because of program restructuring and decreased availability of funds, it was recommended that the Solar Photochemistry sub-division of BES would be a more appropriate parent program for support of continued research.

07 ISOTOPE AND RADIATION SOURCES↗

Solid Oxide Fuel Cells Operating on Alternative and Renewable Fuels

This DOE project at the Pennsylvania State University (Penn State) initially involved Siemens Energy, Inc. to (1) develop new fuel processing approaches for using selected alternative and renewable fuels – anaerobic digester gas (ADG) and commercial diesel fuel (with 15 ppm sulfur) – in solid oxide fuel cell (SOFC) power generation systems; and (2) conduct integrated fuel processor – SOFC system tests to evaluate the performance of the fuel processors and overall systems. Siemens Energy Inc. was to provide SOFC system to Penn State for testing. The Siemens work was carried out at Siemens Energy Inc. in Pittsburgh, PA. The unexpected restructuring in Siemens organization, however, led to the elimination of the Siemens Stationary Fuel Cell Division within the company. Unfortunately, this led to the Siemens subcontract with Penn State ending on September 23rd, 2010. SOFC system was never delivered to Penn State. With the assistance of NETL project manager, the Penn State team has since developed a collaborative research with Delphi as the new subcontractor and this work involved the testing of a stack of planar solid oxide fuel cells from Delphi.

30 DIRECT ENERGY CONVERSION↗

SISGR - Hydrogen Caged in Carbon-Exploration of Novel Carbon-Hydrogen Interactions

Hydrogen trapped in a carbon cage, captured through repulsive interactions, is a novel concept in hydrogen storage. Trapping hydrogen via repulsive interactions borrows an idea from macroscale hydrogen storage (i.e. compressed gas storage tanks) and reapplies these concepts on the nanoscale in specially designed molecular containers. Under extreme conditions of pressure, hydrogen solubility in carbon materials is expected to increase and carbon is expected to restructure to minimize volume via a mixed sp2/sp3 hydrogenated state. Thermodynamics dictate that pre-formed C-H structures will rearrange with increased pressure, yet the final carbon-hydrogen interactions may be dependent upon the mechanism by which hydrogen is introduced. Gas “trapping” is meant to denote gas present in a solid in a high density, adsorbed-like state, when the external pressure is much less than that necessary to provide a comparable fluid density. Trapping thus denotes a kinetically metastable state rather than thermodynamic equilibrium. This project probed mechanochemical means to polymerize select hydrocarbons in the presence of gases, in an attempt to form localized carbon cages that trap gases via repulsive interactions. Aromatic, polyaromatic, and hydroaromatic molecules expected to undergo cyclo-addition reactions were polymerized at high (~GPa) pressures to form extended hydrogenated amorphous carbon networks. Notably, aromatics with a pre-existing internal free volume (such as Triptycene) appeared to retain an internal porosity upon application of pressure. However, a high photoluminescence background after polymerization precluded in situ identification of trapped gases. No spectroscopic evidence was found after depressurization that would be indicative of pockets of trapped gases in a localized high-pressure environment. Control studies suggested this measurement may be insensitive to gases at low pressure. Similarly, no spectral fingerprint was found for gas-imbued spherical carbon nanoshells, even after chemical “capping” of the gas-imbued nanoshells to limit gas diffusivity. Subsequently, spectral probes of gas vibrational modes adsorbed in various carbon nanostructures (including activated carbons, single-wall carbon nanotubes, polymers of intrinsic microporosity (PIMs), and UV-irradiated PIMs with decreased pore size) were found only at high pressure. The vibrational mode of the adsorbed film became perturbed in high density films, and the perturbation was sensitive to surface functional groups, pore size, and pore dimension. Experimental results were corroborated with first-principle modeling using density functional theory. Development of semi-empirical correlations that relate the spectral features to pore dimension, geometry, and chemical potential of the adsorbed film are on-going.

08 HYDROGEN↗

Distribution Systems in a High Distributed Energy Resources Future

The provision of electricity in the United States is undergoing significant changes for a number of reasons. The implications are unclear. The current level of discussion and debate surrounding these changes is similar in scale to the discussion and debate in the 1990s on the then-major issue of electric industry restructuring, both at the wholesale and retail level. While today’s issues are different, the scale of the discussion, the potential for major changes, and the lack of clarity on implications are common to both time periods. The U.S. Department of Energy (DOE) played a useful role during the 1990s’ discussion and debate by sponsoring a series of papers that illuminated and dug deeper on a variety of issues being discussed at that time. Topics and authors were selected to showcase diverse positions on the issues, with the aim to better inform the ongoing discussion and debate, without driving an outcome.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Year End Progress Report on Rattlesnake Improvements

Rattlesnake is a MOOSE-based radiation transport application developed at INL to support modern multi-physics simulations. At the beginning of the last year, Rattlesnake was able to perform steady-state, transient and eigenvalue calculations for the multigroup radiation transport equations. Various discretization schemes, including continuous finite element method (FEM) with discrete ordinates method (SN) and spherical harmonics expansion method (PN) for the self-adjoint angular flux (SAAF) formulation, continuous FEM (CFEM) with SN for the least square (LS) formulation, diffusion approximation with CFEM and discontinuous FEM (DFEM), have been implemented. A separate toolkit, YAKXS, for multigroup cross section management was developed to support Rattlesnake calculations with feedback both from changes in the field variables, such as fuel temperature, coolant density, and etc., and in isotope inventory. The framework for doing nonlinear diffusion acceleration (NDA) within Rattlesnake has been set up, and both NDA calculations with SAAF-SN-CFEM scheme and Monte Carlo with OpenMC have been performed. It was also used for coupling BISON and RELAP-7 for the full-core multiphysics simulations. Within the last fiscal year, significant improvements have been made in Rattlesnake. Rattlesnake development was migrated into our internal GITLAB development environment at the end of year 2014. Since then total 369 merge requests has been accepted into Rattlesnake. It is noted that the MOOSE framework that Rattlesnake is based on is under continuous developments. Improvements made in MOOSE can improve the Rattlesnake. It is acknowledged that MOOSE developers spent efforts on patching Rattlesnake for the improvements made on the framework side. This report will not cover the code restructuring for better readability and modularity and documentation improvements, which we have spent tremendous effort on. It only details some of improvements in the following sections.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

A Survey of State and Local PV Program Response to Financial Innovation and Disparate Federal Tax Treatment in the Residential PV Sector

High up-front costs and a lack of financing options have historically been the primary barriers to the adoption of photovoltaics (PV) in the residential sector. State clean energy funds, which emerged in a number of states from the restructuring of the electricity industry in the mid-to-late 1990s, have for many years attempted to overcome these barriers through PV rebate and, in some cases, loan programs. While these programs (rebate programs in particular) have been popular, the residential PV market in the United States only started to achieve significant scale in the last five years – driven in large part by an initial wave of financial innovation that led to the rise of third-party ownership.

14 SOLAR ENERGY↗