Introduction to solar photovoltaic systems: Should solar be part of demand side management programs?
As energy demand grows and climate challenges intensify, utilities and energy providers are rethinking how to build a more resilient, sustainable grid. Solar photovoltaics (PV) have emerged as a key component in modern demand-side management (DSM) strategies.
Distributed solar PV systems offer a decentralized approach to electricity generation that aligns well with DSM goals. These systems reduce reliance on traditional fuels, cut emissions and deliver cost-effective capacity, while empowering communities with greater energy choice. Solar also benefits the demand curve by countering high daytime loads. In this blog, we explore the benefits, challenges and strategic opportunities of integrating solar PV into DSM portfolios, and why CLEAResult’s holistic approach helps maximize its impact.
Why solar PV strengthens DSM
- Cost-effectiveness: In many regions, solar PV is among the most affordable ways to add new capacity, thanks to declining equipment costs and taking an existing abundant fuel – solar irradiation – and converting it straight into electricity.
- Reliability: With no moving mechanical parts, PV systems have lower maintenance risks than many traditional generation technologies. And since solar PV relies on local and abundant fuel supply, risks associated with supply are drastically mitigated when compared to other fuel types.
Due to these factors, when considering the levelized cost of electricity by fuel type, solar PV is one of the most affordable options for expanding capacity. Solar PV is also easily integrated into an existing grid on the demand side, as it doesn’t have the constrained site requirements that hydroelectric or wind power do.
Solar’s impact on peak demand and grid load
One of the greatest challenges utilities will face over the next decade is meeting peak demand during summer, as temperatures continue to hit new record highs and people rely more heavily on cooling devices that run on electricity. Using solar as a tool to counter high daytime loads has proven to have a significant impact on the demand curve, greatly alleviating daytime loads.
California, Texas and Florida are the top three states for solar penetration – states that are also experiencing record high summer temperatures. Combined, they account for over 45% of US solar production. As a result, these states have seen a shift from a traditional curve for electricity demand to a curve where net demand drastically decreases during daylight hours when distributed solar PV meets part of that demand. This allows electricity providers to use less centralized and conventional fossil-fuel power generation as solar PV reduces grid load.
Incentives and program support
Since there is no fuel cost, and systems can integrate into the grid in a variety of spaces, the majority of the cost for solar PV is in the upfront price of equipment and installation – plus operations and maintenance (O&M) to a lesser degree, especially in distributed systems.
Incentives can help alleviate costs, with states offering various programs. One example is a client program in the Northeast, administered by CLEAResult. This is the state’s primary solar incentive program designed to promote the development of solar energy. Participants receive monthly payments for up to ten years. The program was launched nearly seven years ago.
Residential, community and low-income solar programs
Solar PV programs are part of several customer markets, including both residential and C&I. Residential solar programs can be integrated into single-family homes or in multi-family homes through different project designs. Rooftop solar can be part of a holistic approach to home energy auditing – bringing together weatherization, energy efficiency and solar energy initiatives. Such a holistic approach aims to reduce energy waste through weatherization, increase effectiveness through energy efficiency, and minimize demand through solar production.
Community solar programs are for people who would like to participate in solar initiatives without installing an individual system. Anyone can participate in a community solar program, and residents can receive all the benefits of a rooftop solar installation without undertaking any of the project developments on their own.
Solar can also be added to existing energy programs for low-income households. Assistance programs for low-income homeowners to install solar on their own rooftops, whether through leases or ownership of the system, are available. Programs for low-income residents to enroll in no-cost community solar are also offered.
In states where low-income residents don’t have individualized utility bills, solar programs that distribute alternate benefits may be available. For example, in a rental building where utility bills are master-metered and included in a residents’ rent, landlords can use their energy savings from their solar PV systems to lower rent, provide community area energy, fund a service within the building, or offer other non-electric bill-related benefits to their residents.
Maximizing industrial spaces
Solar PV programs can also be used as part of a commercial and industrial (C&I) program. Many industrial buildings have flat rooftops, large parking lots or open fields, which are ideal settings for distributed solar. The unused open spaces can be capitalized on for additional income, while creating shade that will have positive future benefits in terms of wear and tear on equipment.
Solar PV programs have the additional advantage of being used as a backup power for critical infrastructure through system designs that include storage, or for a boost to non-critical infrastructure during peak hours.
Supporting workforce development
Workforce development programs supporting solar programs are offered both on the national and state level. The U.S. Department of Energy’s Solar Energy Technologies Office funds virtual and in-person training, internships, apprenticeships, certification programs, career counseling and mentorships. New York, Pennsylvania, Massachusetts, California, Arizona, Texas and Colorado all offer some form of workforce development, and even more states are planning to launch workforce development solar programs within the next five years.
CLEAResult’s integrated DSM approach
CLEAResult offers the distinct advantage of being able to administer a solar program through a broader DSM lens, understanding where solar fits in with weatherization, energy efficiency, demand response and complementary programs.
CLEAResult also has a dedicated team specializing in DSM, including local teams with national support and industry expertise. Clients see the best results through CLEAResult when they include a portfolio of solar programs along with other DSM programs, which maximizes efficiencies and simplifies the customer experience for residents.
Solar PV: A scalable strategy
As utilities and energy providers face mounting pressure to meet rising demand, reduce emissions, and support equitable access to clean energy, solar photovoltaics emerge as a powerful and versatile solution. From residential rooftops to large-scale commercial installations, solar PV systems offer a scalable, cost-effective and low-maintenance option that integrates seamlessly into DSM strategies.
With supportive policies, workforce development initiatives, and innovative program designs like those offered by CLEAResult, solar energy can play a pivotal role in transforming the energy landscape – delivering environmental, economic and social benefits across diverse communities.