SUN COULD SHINE FOR JERSEY, PENNSYLVANIA

New Study Finds that Solar Power Is a Bargain for Ratepayers in New Jersey and Pennsylvania

5 November 2012 (PR Newswire via RenewablesBiz)

“…[S]olar power in New Jersey and Pennsylvania delivers value to the electric grid that exceeds its cost by a large margin, making it a bargain for energy consumers…Energy providers in New Jersey and Pennsylvania are required to buy certain amounts of solar power each year. They pay a premium for that solar power in the form of Solar Renewable Energy Certificates, or SRECs, and pass this premium cost on to ratepayers.

“…[A Mid-Atlantic Solar Energy Industries Association (MSEIA) and Pennsylvania Solar Energy Industries Association (PASEIA) study by consulting firm Clean Power Research] found that solar power delivers a total levelized value ranging from $256 to $318 per MWh (25.6 cents to 31.8 cents per kWh)…”

“…[T]his includes a premium value in the range of $150 to $200 per MWh (15 cents to 20 cents per kWh), above the value of the solar electricity generated. The SRECs in New Jersey currently cost about $60/MWh (6 cents per KWh), and in Pennsylvania they cost about $20/ MWh (2 cents per KWH)…[A] value that exceeds its cost by 50% to over 100%...

“Research concluded that…distributed solar power delivers…Lower conventional electricity market prices due to reduced peak demand…Valuable price hedge from using a free, renewable fuel rather than variably-priced fossil fuels…Avoided costs of new transmission and distribution infrastructure…Reduced need to build, operate and maintain natural gas generating plants…Reduced outages due to a more reliable, distributed electric power system…Reduced future costs of mitigating the environmental impacts of coal, natural gas, nuclear, and other generation…[and] Enhanced tax revenues associated with local job creation, which is higher for solar than conventional power generation…”

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