Chair of the Minnesota Public Utilities Commission Beverly Jones Heydinger has to decide on the right formula for the Minnesota Value of Solar Tariff (VOST). The calculation is a replacement for net energy metering. If the VOST is too low, then installing solar will become too costly for many. If the VOST is too high, then it will become a subsidy for the solar industry and customers who can already afford solar projects. Students are asked to put themselves in the shoes of the protagonist and find the right balance.
Evading the Death Spiral: Minnesota's Value of Solar Tariff
by: Jeremiah Johnson
Publication Date: October 8, 2015
Length: 16 pages
Product ID#: 1-430-450
Core Disciplines: Social Impact, Strategy & Management, Sustainability
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Description
Teaching Objectives
After reading and discussing the material, students should:
- Understand and analyze energy policy and how it influences the adoption of alternative energy strategies.
- Explain the cost recovery process for electricity generation, transmission, and distribution.
- Evaluate the avoided cost calculations of the VOST.
- Understand the differing viewpoints of utilities, customers, and environmental groups.
- Determine the impacts of the VOST for utilities, customers, and the solar market