The document investigates the economies of scale for solar energy, revealing that smaller solar installations can compete effectively with larger ones in terms of cost. It compares the estimated levelized cost of electricity for various scales, indicating that solar energy is becoming more affordable and competitive across different sizes. Additionally, it addresses the minimal impact of customer-owned solar on utility bills while highlighting significant implications for utility earnings.

1. IS BIGGER
BETTER?
Surprising findings on the economies of scale of solar energy
John Farrell, Director of Energy Democracy,
Institute for Local Self-Reliance

2. SO LA R ECO N O M IES O F SCA LE
Costofelectricity
0.0¢
2.0¢
4.0¢
6.0¢
8.0¢
10.0¢
12.0¢
14.0¢
Residential ≤10 10-20 20-50 50-100 100-250 250-500 500-1000 5-10 MW 10 to
20 MW
20 to
100 MW
100 to
1,000 MW
Estimated levelized cost of electricity based on reported 2015 costs*
kilowatts megawatts
Sources: Tracking the Sun IX and Utility-Scale Solar 2015
(SunShot, Berkeley Labs); SAM (NREL); ILSR
DOES NOT INCLUDE COST OF DELIVERY

3. Costofelectricity
0.0¢
2.0¢
4.0¢
6.0¢
8.0¢
10.0¢
12.0¢
14.0¢
Residential ≤10 10-20 20-50 50-100 100-250 250-500 500-1000 5-10 MW 10 to
20 MW
20 to
100 MW
100 to
1,000 MW
SO LA R CO M PETES AT M O ST SIZES
kilowatts megawatts
Sources: Tracking the Sun IX and Utility-Scale Solar 2015
(SunShot, Berkeley Labs); EIA (2014 data); CPUC (2011); NYMEX (2016); ILSR
DOES NOT INCLUDE COST OF DELIVERY
Residential
retail price
Commercial
retail price
Industrial
retail price Calif. Market Price Referent
Price of competition
Price advantage
Estimated levelized cost of electricity based on reported 2015 costs*

4. SO LA R ECO N O M IES O F SCA LE
InstalledCost
$0.00
$1.10
$2.20
$3.30
$4.40
Residential ≤10 10-20 20-50 50-100 100-250 250-500 500-1000 5-10 MW 10 to
20 MW
20 to
100 MW
100 to
1,000 MW
Median reported installed costs 2015*
kilowatts megawatts
Sources: Tracking the Sun IX and Utility-Scale Solar 2015
(SunShot, Berkeley Labs)
DOES NOT INCLUDE COST OF DELIVERY
*Utility-scale figures reported in $ per AC-watt and
are adjusted down 10%
SM A LL SO LA R
PRI CES I N
G ERM A N Y BEAT
A N Y SO LA R
PRI CE I N U. S.

5. Rooftop shading lowers peak electric load
Credit: Flickr user 64MM
Anthony Dominguez, et al. (UCSD) - http://bit.ly/2kzx69N

6. Dispersion reduces variability
Andrew Mills and Ryan Wiser (NREL, 2010) - http://bit.ly/2krJuds

7. Opportunity: System resiliency

8. Reduced line losses

9. 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Rate impact
2.7%2.5%
Southwest Utility
Northeast Utility
BO TTO M LIN E of 10% customer-owned solar
Minimal impact to
customer bills
Source: Berkeley Labs, 2014

10. -20.0%
-15.0%
-10.0%
-5.0%
0.0%
Earnings impact Equity return impact
-8%-15% -3%-8%
Southwest Utility
Northeast Utility
BO TTO M LIN E of 10% customer-owned solar
Significant impact
for utility earnings
Source: Berkeley Labs, 2014

12. “ There is one
great advantage
that must follow
regulation, and
that advantage is
protection"