From: Robyn L Diehl on behalf of Robyn L Diehl <rdmcdougle@vcu.

edu>
To: Damian Pitt
Cc: Grant Rissler
Subject: Re: Release of VCU Distributed Solar Research Reports
Date: Thursday, May 24, 2018 11:29:06 AM

Damian,

Grant had a great meeting with Mark regarding your work.

Grant,
Do you mind circling back with Mark?

Take care
Robyn

On Thu, May 24, 2018 at 11:02 AM, Damian Pitt <dpitt@vcu.edu> wrote:
Grant and Robyn,

Just wanted to give you a heads-up that I've reached out to Mark Rubin about presenting my
recent research before the Rubin Group. Robyn, I believe you told me that you had spoken
with him about my work, so could you please circle back to him on this as well?

Thanks,

Damian

---------- Forwarded message ----------

From: Damian Pitt <dpitt@vcu.edu>
Date: Thu, May 24, 2018 at 11:00 AM
Subject: Fwd: Release of VCU Distributed Solar Research Reports
To: Mark E Rubin <merubin@vcu.edu>

Hi Mark,

I'm writing to follow up on our past discussions about presenting some of my research to the
Rubin Group. As I understand it, net-metering will be a major focus of the group's
deliberations for the upcoming year, and I believe that my work can really help to shed light
on that issue. 

As you can see in the email below, I recently released two lengthy research reports on
distributed solar and net-metering. The very short summary of the findings is that concerns
about costs, cross-subsidization, and grid impacts from distributed solar are premature at
market penetration levels below, say, 5%. However, many stakeholders in other states,
including solar energy supporters, agree that net-metering is not the best long-term solution
for facilitating distributed solar and other distributed energy resources (e.g., energy storage
and demand side management).

I would love the opportunity to be able to discuss these findings in front of the group. Let
me know what you think!
Damian Pitt

---------- Forwarded message ----------

From: Damian Pitt <dpitt@vcu.edu>
Date: Thu, May 10, 2018 at 12:08 PM
Subject: Release of VCU Distributed Solar Research Reports

Hello,

I’m happy to announce that I’ve completed two major research reports on distributed solar
PV, which are now being released to the public (see attached). A VCU news article
summarizing these reports is available here:

https://wilder.vcu.edu/news-and-events/news-articles/pitt-solar-energy.html

https://twitter.com/VCUWilderSchool/status/993921780879421440 

The first report, “Optimizing the Grid Integration of Distributed Solar Energy, investigates
current research on the value of solar energy and its impact on the electrical grid, and uses a
local-scale simulation model to demonstrate the potential for increasing distributed PV
system capacity in Virginia. Some key findings, many of which you are likely familiar with,
include:

-- Virginia is 31st in the country in total distributed PV capacity, 38th in distributed PV per
capita, and 45th in the percent of PV capacity that comes from distributed systems (only
11%, compared to 39% nationwide), as of the end of 2017.

-- The general consensus among independent value-of-solar (VOS) studies (those completed
on behalf of a Public Utility Commission rather than an electric utility or solar energy
advocates) is that the net benefits provided by distributed solar are roughly equal to, if not
above, the retail electric rate.

-- A report by the Lawrence Berkeley National Laboratory (LBNL) shows that even if the
net VOS is lower than the retail rate, the actual cost impacts are likely negligible, given the
very small market penetration of distributed PV systems in most regions. 

-- A 2011 study by the Virginia SCC shows that, even with very conservative assumptions
about the value of solar, the net cost impact of increasing Virginia’s distributed PV market
penetration to 1% would only raise the average residential customer’s bill by a little over 50
cents per month. Applying the LBNL methodology to the Virginia SCC data suggests that,
even with these conservative assumptions, raising the market penetration all the way to 5%
would still only increase electricity rates by less than $3 per month on average. With less
conservative assumptions about the value of solar, these cost impacts would be even lower.

-- Numerous studies from various federal government agencies and research laboratories
show that existing rooftops can support vast amounts of DPV across the country, much of
which can be supported with existing electricity market conditions and grid infrastructure.
For example, a study by Navigant Consulting for Dominion Energy found that eleven
“representative” distribution feeders – out of a total of 1800 across the Dominion service
territory – could host over 200 MW of distributed PV (over four times the current statewide
total) just by themselves.

-- Per our modeling, a single suburban case study area outside of Manassas has a total
rooftop capacity of nearly 25 MW, or more than half of Virginia's current statewide
distributed PV total. 

The second report is titled “Evaluation of Compromise Post-Net Metering Models for
Distributed Solar Energy.” This study was funded by Dominion Energy, but per our contract
the utility had no editorial control over the findings or recommendations. 

This study explores proposed compromise models that would support the continued growth
of distributed PV while remedying some of the long-term limitations of net metering (e.g., it
discourages customers from engaging in energy storage or other demand management
practices). It is based on interviews with representatives from four stakeholder groups --
electric utilities, the solar energy industry, state regulators, and environmental or consumer
advocacy organizations -- including both national experts and representatives from three
case study states (Maine, Minnesota, and New York). 

In each of those case studies, collaborative stakeholder groups similar to the Rubin Group
developed proposed “post-net-metering models” that would replace net-metering with a new
tariff based on the findings of a new value-of-solar study prepared for the respective state.
Crucially, each of the models sought to account for the unique values that solar can provide
at different times and places. For various reasons, New York is the only one of those states
still moving forward with their compromise post-net-metering model, but all three examples
are interesting for future consideration.

Long story short, these studies paint a picture that Virginia is far behind on distributed solar
PV currently, and that the concerns raised by utilities are premature, meaning that there is no
reason not to aggressively expand distributed PV up to and beyond the 1% cap. However,
we should also start exploring a compromise “post-net-metering” policy that would properly
incentivize solar PV and other distributed energy resources, along with building out the
smart grid technology, storage, V2G infrastructure, etc. that would make that all work
together (e.g., smart meters that can track distributed PV output on an hourly basis and
compensate accordingly).   

I'm interested in hearing your thoughts on this research. Thanks,

Damian Pitt

--
Dr. Damian Pitt, PhD, AICP
Associate Professor and Assistant Program Chair
Urban and Regional Studies and Planning
L. Douglas Wilder School of Government and Public Affairs
Virginia Commonwealth University
804-828-7397
dpitt@vcu.edu
 --
Dr. Damian Pitt, PhD, AICP
Associate Professor and Assistant Program Chair
Urban and Regional Studies and Planning
L. Douglas Wilder School of Government and Public Affairs
Virginia Commonwealth University
804-828-7397
dpitt@vcu.edu

--
Robyn McDougle,PhD
Interim Director, Center for Public Policy
Director, Office of Public Policy 
Associate Professor of Criminal Justice
L.Douglas Wilder School of Government and Public Affairs
Virginia Commonwealth University