Authors:

Ellie Price

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About Paper:

Utility companies recover high fixed costs by setting volumetric electricity prices well above marginal supply costs. As more consumers adopt rooftop solar, they reduce their grid electricity consumption, prompting utilities to increase volumetric rates to recover costs from a shrinking base of non-solar customers. This leads to non-solar consumers paying electricity bills that significantly exceed supply costs, while solar adopters avoid paying their fair share of costs, creating a "solar cost shift". This study examines how electricity rate structures, net energy metering policies, and battery storage affect the solar cost shift. By estimating bills under various rate structures, I compare electricity bills for solar and non-solar consumers against wholesale supply costs. Additionally, I analyze how changes in net energy metering policies and the adoption of battery storage influence the role of rate structures in mitigating the solar cost shift. This research provides insights into how rate structures can be designed to better align the electricity bills of solar and non- solar consumers with actual supply costs, mitigating the solar cost shift. Developing Social Justice-Centered Curricula: Exploring Tuberculosis Disparities in Incarcerated Populations Through Case-Based Learning Alex Pulido

Source:

UC Davis / Ag & Resource Economics / 2025

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Co-authors:

Ellie Price