Distributed photovoltaic system evaluation by Arizona Public Service Company

Arizona Public Service Company (APS) has performed a study of the APS system to (1) determine whether APS has high-value distributed applications of photovoltaics (PV), (2) quantify the value of a distributed PV system, (3) compare the APS results with the earlier PG&E results and (4) estimate whether there will be a significant market for these applications at APS. The study confirmed that there is a value to distributing PV generation throughout the utility distribution system. The breakeven cost for a PV system in APS´ best location is $3.44/watt, in 1996 dollars. Feeders which meet all the criteria and which will be eligible for full benefits are relatively rare. However, a PV system will usually have more value if it is distributed rather than installed at a central station site