SAM Energy Value ($) when a different utility rate applies in a commercial PV project

  • Dennis Bell
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13 Feb 2013 00:57 #1288 by Dennis Bell
Can SAM model cash flow for a PV project when a different utility rate schedule is used with the project than without? This applies to a Commercial PV project by the property owner.

For example Southern California Edison (SCE) has an Option R utility rate that can be applied to their GS-2 rate when a PV project is installed. Option R greatly reduces demand charges in exchange for higher TOU energy charges. My question relates to whether SAM can be set to use the Option R utility rate WITH the PV project, and use the regular rates WITHOUT the PV project, so that the cash flow calculation properly accounts for the true savings?

Based on the help documentation, I believe that SAM calculates the Energy Value ($) based on whichever utility rate is entered. If the Option R rate is the one entered, I believe that SAM would use its very high energy costs when it calculates the "Revenue without system" in the cash flow, which would artificially improve the NPV of installing the system. I believe that the "Revenue without the system" should be calculated with the regular GS-2 utility rates, with
their higher demand charges and lower energy costs per kWh.

I know that the load data will need to be input, so the calculation can be done for demand rates on an hour by hour basis, since both the Option R and regular GS-2 rates have demand charges. I suppose that I could create TWO SAM models, using the same loads but with the different rates, and then somehow adjusting the Energy Value ($) each year during the life of the project to properly account for the true electricity revenue savings?

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  • Paul Gilman
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15 Feb 2013 22:19 #1289 by Paul Gilman
Dear Dennis,
Your observations from your reading of the documentation are correct. For the "revenue without system," SAM assumes that electricity purchases to meet the building electric load are at the buy rates specified on the Utility Rate page. SAM uses the same rate structure for the "with system" and "without system" revenue.
If you are comfortable with writing scripts or computer programming, you could use SamUL to calculate your own revenue without system value using a a different rate structure from the revenue with system. I've added an attachment to your original post of an NREL study that looks into this question along with the SAM file with SamUL scripts that the authors used for the study.
UPDATE: SAM 2014.1.14 includes a SamUL script as a sample file to calculate energy value based on two different utility rates. For details see Comparing different rates .
Best regards,

Paul.

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