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Distributed Renewable Energy Operating Impacts and Valuation Study

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SECTION 6 — DEVELOPING A WINNING<br />

BUSINESS CASE FOR SOLAR DE DEPLOYMENT<br />

A winning business case for<br />

solar DE deployment must<br />

demonstrate quantitative<br />

value <strong>and</strong> address the many<br />

qualitative issues in order to<br />

achieve success.<br />

Arizona’s successful solar future requires an alignment<br />

between the business considerations, economic drivers, market<br />

readiness <strong>and</strong> societal needs. In order for solar DE to take its<br />

place along side traditional thermal resources, a case needs to<br />

be developed that supports the expansion of solar DE across<br />

residential <strong>and</strong> commercial markets. The support has to include<br />

customer-side issues, such as readiness for product acceptance;<br />

utility-side issues, such as system integration; <strong>and</strong> businessside<br />

issues, such as the financial support for solar DE<br />

investment.<br />

This section identifies a framework for assessing the value of<br />

solar DE deployment in the APS service territory. This<br />

assessment is based on the goals, analysis, <strong>and</strong> current<br />

information outlined in this Report. It includes a<br />

comprehensive assessment of the benefits to APS, its<br />

customers, <strong>and</strong> other stakeholders, while promoting a<br />

sustainable solar DE deployment program in Arizona.<br />

Value has a number of dimensions, some of which are purely<br />

economic or engineering based (such as those driven by<br />

savings potential), <strong>and</strong> those which have an element of<br />

perception (such as the consumer desire to have a reduced<br />

environmental impact). A supportable winning business case<br />

needs to take into account both types of value.<br />

The foundation for the assessment in this <strong>Study</strong> is built upon:<br />

(1) A quantitative evaluation of the savings potential from<br />

solar DE deployment under the diverse scenarios<br />

defined in this <strong>Study</strong>.<br />

(2) A qualitative assessment of various factors <strong>and</strong><br />

measures that could be undertaken to help further solar<br />

DE deployment sufficient to achieve the RES<br />

objectives in a financially <strong>and</strong> socially responsible<br />

manner.<br />

© 2009 by R. W. Beck, Inc. All rights reserved.<br />

Arizona Public Service

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