New Rate Design Innovations to Aid Utilities toward Building Sustainable Micro grids

By Dr. Babu Ram

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Abstract—The objective of this paper is to present new rate design innovations toward improving or replacing the net energy metering and billing associated with the rooftop solar PV systems. New rate design innovations are helpful in enhancing the sustainability of renewable energy based micro grids and utility’s network. The paper is presented in five parts.

Part I being introductory in nature, summarizes the rate design innovations by utilities in the US with regard to net energy metering. Part-II presents analyses about the applicability of Time of Use (TOU) tariff to net energy metered solar and nonsolar
customers in the residential sector. In part III, Welfare Economics of the proposed TOU tariff is presented. Part IV discusses results. Finally, conclusions and recommendations
have been presented in part V of the paper.

It may be noted that the paper is prepared in the context of the US utilities, but the rate design innovations, conclusions and recommendations that have been discussed in the paper are equally applicable to such utilities in Africa and other parts of the world, that are building renewable energy based micro grids.

Index Terms- Net Energy Metering, New Rate Design, Sustainable Micro grids, and Time of Use Pricing

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