 |
Svein Olav Morner, Ph.D., P.E., Sustainable Engineering Group |
Larger buildings electrical rates typically allocate the cost of electricity towards demand. The cost for demand can be similar or even exceed the cost of energy. Because of this, the economics for large buildings PV systems are less favorable when only the energy cost savings are considered. The rational to not attribute demand savings to the PV system have been that a cloud can reduce the output for 15 minutes and the peak for the month or year will be set. This presentation demonstrates that demand savings should be included in the economic analysis of PV systems.