Feasibility and consumer benefits of meeting the renewable portfolio standard for distributed generation in Illinois

Abstract

The Illinois Renewable Portfolio Standard (RPS) set a goal of meeting 0.25% of the state's total electricity sales from distributed generation by 2025. This study analysed the feasibility of meeting this distributed generation RPS target with residential solar systems. The net present value (NPV) of residential solar photovoltaic systems to system owners were estimated over a 25 year lifespan. The solar energy systems were allocated on a per capita basis to seven regions across Illinois to take into account region-specific electricity rates and solar resources. The model proposed here compares the annual payments and added value to the customer by compiling yearly NPV on a county, region, and state basis for the system lifespan. Reductions in CO2 and transmission losses were also estimated to more thoroughly describe the positive effects of distributed generation.